Resurrecting Brands From The Dead

January 31, 2020 | By Michael Stone, Chairman and Co-founder of Beanstalk-

We can all recall brands that faded away and disappeared from the marketplace – brands we trusted, were emotionally attached to: Oldsmobile, Amoco, Blockbuster, Woolworth’s, among others.

While these brands may endure in our memories, most seem very clearly dead and gone. But sometimes, when the conditions are right and it’s done correctly – as may be the case with the revived FAO Schwarz toy retailer – resurrecting a dead brand can be a smart business decision, and a shortcut to establish a lasting bond with consumers. Licensing can be a central strategy in those cases.

The topic of dead brands and whether there’s a second (or third) life for them is certainly timely, as so many retailers and brands are teetering: Forever 21, Barneys New York, Sears, Victoria’s Secret, Kodak – the list goes on and on in our highly disrupted global retail ecosystem.

At the same time, think about Polaroid, The Sharper Image and FAO Schwarz. Each was successfully brought back after going out of business and disappearing for years. FAO Schwarz was fading and finally closed its New York City flagship on Fifth Avenue in 2015. resurrecting brands from the dead By Michael Stone Gone but Not Forgotten: How, When and Why to Bring a Brand Back But ThreeSixtyGroup bought the name and opened a new flagship nearby in Rockefeller Plaza in late 2018. And prospects may be good: There’s now an FAO store in Beijing, one recently opened in London inside Selfridges on Oxford Street, and another in Dublin in Arnotts department store on Henry Street.

The message here is that brands can easily fade from the marketplace, but not so easily from our memories, leaving us with a lasting emotional connection to the brand. The brands may be gone, but they leave strong equities behind. New owners of these brands can leverage that connection, those equities, and revive the brand, re-engaging with consumers. What does it take to successfully bring back a dormant brand?

First, there must be substantial remnants of awareness, including emotional attachment and authenticity. FAO fulfills this requirement. Many consumers, across generations, warmly recall wondrous FAO experiences. Second, there must be a market gap to fill. The liquidation of retail giant Toys “R” Us (FAO’s former owner, actually) has left oodles of toy expenditures up for grabs. And while Walmart, Target and Amazon are eating up big pieces of the pie, there’s still plenty to go around for the FAO Schwarz brand to take a slice.

Third, a resurrected brand needs to be able to tell a good story. The Sharper Image, for instance, had so much to say about cool gizmos and gadgets. A strong story helps engender loyalty and trust with consumers that doesn’t disappear quickly. But to bring back a dead brand, the story also has to be updated. Polaroid, for one, did just that – with its digital cameras, wireless devices, Smart TVs and a revival of some instant analog camera products that are hipster-cool.

Fourth, the mistakes that caused the demise of a brand must not be repeated by the new owner. The Sharper Image has been distancing itself from previous (failed) business strategies, and introducing new ones: Catalog sales are deemphasized, e-commerce is more fully utilized, all of the brick-and-mortar stores are closed and licensing is used to its full potential to avoid the cost challenges that contributed to the sinking of the original brand. Indeed, all of The Sharper Image Product are licensed. Ditto Polaroid. Finally, fifth, to succeed in a brand revival, consumers need to “feel the power” of the brand. Otherwise, the revival won’t last – or might just limp along.

Many attempted brand revivals fail. Although consumers may have long memories and fond associations, it’s also true that they have moved on. Revived brands must win some of those consumers back – new ones too (as Polaroid has done), including some who never knew the brand before. Successful brand revival takes time, resources and commitment to prevent history from repeating itself.