One of the discussion point that came up at a marketing breakfast I attended last week was that the Internet was resulting in the commodisation of goods. My thought on the subject is that’s why creating a brand is so important online.

Consumers don’t just use the Internet to get goods at the cheapest price available, they use it to get the best experience available and happily pay the premium for it also. Just look at the success of English Cut, the blog of Thomas Mahon, a Saville Row tailor. Thomas has used the medium of the internet to establish his brand and is so in demand that he is considering only producing one hundred suits a year and has launched a line of £150 shirts.

Rather than simply turning to the Internet to compete on price, companies should use the medium as a means of differentiating their products and services to those of their competitors. They should do so by communicating the concept of value about their brand.

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