Considering modern branding.

"Branding," which serves as a guiding principle for corporate value creation. While the term itself has been discussed for a long time, the nature of branding is undergoing significant transformation amid major shifts in living environments and consumer behavior driven by digitalization and globalization.

Simply put, it is shifting from unilaterally creating a brand to "co-creative branding"—building it together with diverse people.

This new concept of co-creative branding may also be a key point for rebranding Japan to the world. How is branding changing now? What opportunities will this bring to Japanese society going forward?

This series explores these questions through dialogues with key figures across various fields,
・Community branding
• Startup branding
• Regional branding
• Sports branding
and more.

First, we will explain three key points for branding in the new era.

Point 1: In an era where anyone can be the protagonist, "co-creation" is the theme

■Building value creation mechanisms that involve customers and partners

In the digital age, companies and brands connect directly with each individual customer. Here, value generated through direct experiences and relationships holds greater significance than that mediated by traditional media.

Looking at today's global leading brands, such as Apple and Google, it is clear that they have built their brand power through direct customer touchpoints, experiences, and feedback.

Furthermore, with the proliferation of platforms like social media and sharing services where individuals take center stage, we now live in an era where anyone can become a "protagonist" in information dissemination and value creation. Brand information and content now derive greater influence from customer experiences and word-of-mouth than from corporate-generated content.

Within this context, the dimensions of brand value creation have also evolved (Figure 1). It has shifted from the image built through traditional product quality and advertising to value derived from customer experiences and relationships. Today, the primary battleground transcends the "company-consumer" framework, becoming one of "co-creation" where brands are built together.

Moreover, today's co-creation extends beyond the company-customer relationship. It also encompasses areas like open innovation, where companies leverage external partners to create value that transcends traditional business categories and specialized capabilities. We are now in an era where building value creation mechanisms that involve such partners is indispensable.

(Figure 1)

■Transforming Innovation and Marketing Processes into Co-Creation Models

Modern branding is not merely a marketing tool to drive consumption of goods; it is the purpose of corporate and organizational management, serving as a centripetal force to realize social value co-creation. To generate a dynamic process that achieves value innovation from the customer's perspective while sharing the desired values and identity, greater external forces are needed.

To achieve personalized product and value creation for each customer and enhance competitiveness by leveraging external resources beyond corporate boundaries, it is essential to transform the innovation and marketing processes themselves into co-creation models through consistent value sharing.

Point 2: Branding Shifts from "Adjective" to "Verb"

■Companies must share purpose and drive people's actions

In co-creative branding, the subject of these activities must shift from the company or brand to customers and consumers. For example, it requires the mindset of placing "people (customers, employees, etc.) and their communities" at the center of brand building, rather than "products."

Traditional branding as a marketing tool was essentially "adjective branding"—where companies unilaterally attached brand images (like "cool" or "approachable") to products through advertising to attract customers.

In contrast, modern branding means activities where companies share goals like self-realization or solving social issues with customers and partners, forming communities while encouraging actions (behavior) that create value together toward achieving those goals. This dynamic process is called "verb branding" (Figure 2).

By going beyond image creation and using concrete actions that transform participants' lives and society as a centripetal force, it generates stronger brand support and bonds.

(Figure 2)

■How to Engage Consumers and Inspire Action

When creating value by engaging customers and partners, the crucial first step is fostering shared empathy for the vision and values—specifically, what challenges to solve and what world to realize. As Nike does by giving its customers a mission to act (Just Do It.), this requires thinking and leadership centered on customers and society, transcending the company's own interests.

Furthermore, the key lies in building mechanisms and platforms that leverage corporate capabilities and resources to connect people, supporting and realizing value co-creation with customers and partners.

Point 3: Can you create a "community" that transcends the company/organization?

■Accelerating Value Co-creation Through Communities

Today, manufacturers must form and utilize platforms that connect directly with customers to strengthen a new brand value creation cycle (Figure 3) shifting from "product-centric" to "customer-centric." For example, technological advancements like IoT will make value creation through customer feedback via products commonplace.

The "servitization" of products means not just selling goods and ending there, but strengthening relationships built through services that enhance the user experience, such as customization. The recent popularity of subscription-based business models isn't merely about payment methods; it leads to enhancing the usage value for each individual customer through ongoing relationships, bringing new growth opportunities to the brand.

Platforms like Airbnb, Uber, and Mercari are classic community-based models. They generate value not just through product services, but through the interactions between people themselves. They foster activities that amplify brand value centered on users, such as leveraging collective intelligence and user-generated content.

Furthermore, connecting customers sparks ideas for creating new demand and co-creation markets, such as facilitating the flow of information content and business intermediation. These approaches are now a critical focus for brand-led business innovation.

(Figure 3)

■Building Co-creation Communities Beyond Corporate and Organizational Boundaries

Across various fields, solving societal challenges requires thinking beyond traditional corporate and organizational boundaries.

Value-co-creation branding, centered on shared purpose and vision, can serve as a centripetal force for initiatives transcending organizational and individual boundaries. Open innovation between large corporations and startups exemplifies this approach.

Regional branding follows the same principle. An era has arrived where diverse individuals and organizations collaborate beyond traditional "boundaries" like local governments, sharing resources and expertise to create new value. This holds significant potential for generating substantial social value going forward.

To co-create the "Japan Value" of the new era

We have discussed new approaches to branding thus far. Digitalization, customer-centric business and marketing innovation, and value co-creation beyond corporate and organizational boundaries are indispensable for solving Japan's current challenges and creating new value.

Simultaneously, they hold the potential to co-create the future of Japanese society and reconstruct the "Japan Value" of the new era. Indeed, through co-creation initiatives that transcend traditional boundaries, regions, communities, and new-generation leaders are emerging, projecting Japan-originated value to the world.

Isn't this shift from the era of "things" to the era of "people" precisely the opportunity to achieve Japan's rebranding?

Starting next time, we will focus on the cutting edge of co-creation branding across various fields and hear from key individuals who are taking action.