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Brands Betting on Loyalty Programs


Brands Betting on Loyalty Programs


15 Apr 2010

The economic slowdown may have affected most retailers and

brands however, some such as Levi’s, Adidas, Westside, Spencer’s Retail and Emami managed to keep their customer base intact all through. The credit goes to their loyalty program that delivered immediate value, choice and personal relevance. A factor that influences brand loyalty is the degree of the desire to buy a product. Brands have to nurture this constantly, more so during tough times. Jeans major Levi’s and sportswear giant Adidas have bet on frequent product launches and innovative nationwide loyalty programs.


Retail chains like Spencer’s and Westside relied on their private labels to provide affordable and quality products to their customers. While consumer aspirations have not changed due to the slowdown, some consumers are down trading in pack sizes and purchase volumes. This has opened up a huge opportunity for the private label business. Westside, whose positioning has always been on style and affordability, with 80 to 85 per cent of sales coming from private labels, continued to maintain that platform while enhancing product offerings. Indeed, there are always a set of consumers who are price conscious and not brand conscious. These may have shifted brands but the old loyalists stayed on and enchased in on the various loyalty programs.