“5 Epic Crises” That Will Impact Brand Values

On June 26, David Brooks wrote a column on “America Is Facing 5 Epic Crises At Once” in the NY Times https://www.nytimes.com/2020/06/25/opinion/us-coronavirus-protests.html, which has been widely read and quoted since.  We are only half way thru 2020 and already it is predicted to be a memorable and pivotal year for American democracy and business.  A common thread for all these seismic changes is the transformation of values in our culture, with new attitudes, passions and desires by American people.  And since rebranding is about identifying and appealing to these shifting values, the impact on core brands and institutions such as governments, companies, products, business leaders, Wall Street and political leaders will be transformational.

Americans have reached a new low in their trust in almost everything, “creating a moral, spiritual and emotional disaster” according to Brooks.  Surveys support this dismal situation – e.g. we are less happy and expressing less pride in our nation than any time since Gallop starting measuring these emotions 20 years ago.  A recent Pew poll indicated:

• 71% of Americans are angry about the state of their country now
• 66% of them are actually fearful
• Only 17% are proud of their country

Here are the five “gigantic changes” that David Brooks identified and the related values that are consequently shifting which will impact how brands should be re-positioned in the future:

1. Losing The Fight Against Covid-19 – Compared to other advanced countries, there is no question that we are failing. At first there were encouraging signs that society was beginning to feel and behave in a more united way, with a greater sense of community – e.g. “we are all in this together”.  But premature lockdowns re-stimulated the insistence of individualism versus sharing, where “me” and my rights (e.g. no masks for me…) led to a resurgence of Covid-19.  This selfish attitude may not represent the majority (88% of adults agree that people should always keep at least 6 feet apart – CDC survey), but they are influential enough to endanger many others due to the contagious nature of this disease.  Hopefully, there will be a growing desire to shake off these excessively individualistic demands that have caused this latest surge and ultimately convince most people of the benefits of thinking of the public good.  This idea of sharing will be an important value for brands to emphasize in the future.

2. Growing Recognition Of Racism – public opinion on the burdens of African-Americans has shifted with astonishing speed, pushed by the death of George Floyd and the BLM demonstrations. About 60% of Americans now agree that African-Americans face a lot of discrimination (Pew).  This has already inspired many companies to introduce more opportunities for minorities, reflecting a greater sensitivity to the values of fairness and social justice.  Time will tell whether business and new branding can really change our racist culture with tangible, meaningful initiatives, however.

3. Realigning of Politics – leadership questions, divisive attacks and judicial decisions continue to undermine the political landscape. Americans have lost confidence with Government, saying Washington just doesn’t work and the Trump personality cult is even raising havoc within the Republican Party.  Many feel more adamant about the need for broader healthcare, fair treatment of minorities, environmental progress, resolving income and housing disparities, police reforms, etc.  Most of these causes mirror similar conditions that led to FDR’s New Deal in the 1930’s which transformed the values and role of government for decades.

4. A Prolonged Economic Depression – the Covid-19 pandemic has created an economic meltdown of State and household budgets, unsustainably high unemployment and failing businesses. These consequences have led to a greater role of Government for providing loans to soften the blow and minimize lay-offs.  The renewed emphasis on employment and reducing income inequalities in business could further enhance the trends toward social responsibility, corporate governance and less corporate fixation on profits only.

5. Polarization Aggravating Social Injustices – social media has opened the doors for extremist groups to attack their opponents in a war-like public arena with harsh accusations and misinformation. Yes, words do matter.  Quasi-religious groups spreading extremist ideology to maintain their grip on power bases are contributing to hate and violence.  Undermining America’s cultural institutions can be like a cancer, unless businesses voluntarily enforce fairness and anti-hatred policies (e.g. Facebook), or new regulations will be introduced to halt this spread of social injustices.

These social and cultural upheavals will have a dramatic impact on the values of Americans, which will influence how brands should re-position their promises and sustain an emotional connection with their customers, whether it involves product brands, companies, governments, political leaders (Trump or Biden) and/or both the Republican and Democratic parties.