Experts claim that about 60 years ago, a dramatic shift occurred that shaped the reality we live in today. Back then, several decades ago, a process began that transformed the word “competition” from something associated mainly with sports into a broader concept. But why and how did this happen? A bit of history might help explain.
In earlier times, wealthy individuals primarily purchased products they considered prestigious or of exceptional quality, often made by a specific jeweler, artist, or blacksmith. The significant turning point came in the 19th century when industrial production rapidly advanced. Before this stage, most households operated under an autarkic economy, meaning they produced most of their essential needs independently—from food and clothing to shelter.
With the onset of industrial development, households began trading their goods, creating the need to differentiate products. This process gained further momentum with the growth of mass production. Naturally, this created a need for distinguishing between products from different companies. Initially, symbols were used to represent and signify the origin of the product, which later evolved into branded packaging. As we look back today, the rest is history.
So, Why Do We Really Need Branding?
To strip away the layers of arrogance, elitism, and the countless experts eager to glorify and inflate the subject, I will state it clearly and concisely, dividing it into two time periods:
In its early years, branding served a single purpose: to create a clear distinction between competing products. As competition increased, another layer was added—to stand out and drive action.
The true meaning of modern branding lies in this concept of driving action, motivating the customer to prefer one product over another.
In today’s market, almost no business or service exists without facing competition and the challenge of how to overcome it, sell more, and lead.
Therefore, branding has become a necessity for any business or organization facing competition—just as essential as marketing, sales, development, engineering, quality assurance, logistics, and other core business functions.