It needs strong brands, not just clever technology

We are on the brink of a new industrial revolution. The development of the clean technology, low carbon economy will be as important and dramatic as the growth of the digital economy. The incoming US administration is committed to massive investments and incentives to promote renewable energy and all forms of clean, low carbon technologies. The Group of Eight leading industrialised countries have agreed to cut their carbon emissions by 50% by 2050, promising large investments in clean energy technology.

This is one area of the economy predicted to grow strongly despite the recession, and although share prices in the sector have fallen as in every other sector, investors see long term potential and eagerly seek out the more promising candidates.

New companies, new joint ventures, new services and propositions are emerging. Most are trying to attract investment – and the indication is that there will be everyone from governments to venture capitalists willing to invest, but competition for funds will be fierce. Over the next few years we are likely to see all of these new industrial sectors transformed from a myriad of small companies and startups to a handful of major players who are likely to become household names. We will see a big shakeout, with those companies with the right technology, the right products but increasingly, the right brand and design, coming to the fore. We can already begin to spot the potential successes among companies promoting to the end customer – SunPower in the USA, Solar Century in the UK.

While the focus has so far been on technology, it is worth thinking about what one of the world’s shrewest investors considers important when he is evaluating a potential acquisition. Warren Buffet is quoted as saying that traditionally the first criterion is a strong balance sheet. But he put this in third place. In second place was a good management team. Top was ‘brand’. Even in hard times brand in the key to long-term growth.

A well defined brand vision, and a strong ability to translate this into well designed products and brand identity could significantly increase the chances of success in this sector, both in attracting funding in the first place and then in growing a successful business.

But brand doesn’t just a catchy name, a nice logo and some attractive marketing materials. It means defining a compelling story that expresses the organisation’s vision and proposition – something that is easy to understand for those inside and outside the organisation. It means being clear about what sets the organisation or the product/service apart from competitors; having a clear way of doing things that ensures all behaviour and communications reinforce the same coherent messages, to build trust and confidence. Finally it means a strong, consistent way of expressing the brand through its look, feel, tone of voice and through the communication channels most appropriate. This is as important for B2B companies as it is for B2C companies.

Those that get it right will be the star brands of the future – and we have already seen in the dot.com boom how effectively Google, amazon and others have used their clear, engaging brands to build market success.

New companies in the low carbon technology and services sector should be placing brand at the heart of their thinking to inspire employees, attract the best recruits, convince investors that they have a compelling story and customers and end consumers that they are here to stay. Some of the new ‘low clean, green, low carbon economy’ players will be organisations from the ‘old economy’. They will need to reinterpret and reframe their brand, and think carefully about how it should be expressed, to ensure that it reflects the future not the past.

The green economy represents an optimistic, exciting future, a new source of wealth and wellbeing, a new source of inspiration for design aesthetics and communication concepts. Companies must capture this vitality and positivity to transform economy and lifestyle with urgency, helping people switch quickly to new ways of thinking, new forms of behaviour – both in industrial areas but also in everyday life. Compelling, engaging branding, design and communication will play a crucial role in encouraging change – helping to excite people rather than being apprehensive about the changes ahead.

Dorothy Mackenzie, Chairman at Dragon Rouge in London

This article first appeared in Dragonfly 2