If brand purpose were a stock, it’s facing a volatile global market, especially in the United States with the incoming administration, but there is a strong upside for purpose in our region. Back in 2016, when US President Trump entered the White House for his first term, brands like Airbnb had a clear value-aligned message to the incoming administration. They stood for diversity and inclusion, launching the “Community Commitment” — an initiative that attracted widespread positive and negative feedback. Airbnb users had to agree to “treat everyone in the Airbnb community—regardless of their race, religion, national origin, ethnicity, disability, sex, gender identity, sexual orientation, or age—with respect, and without judgment or bias” or else be removed from the platform.
This time around, most brands stay silent or even work behind closed doors to win favours. The wildfires in California, the increasingly deadly consequences of global warming, and the real impact on people’s lives from an anti-immigration and diversity agenda will result in resistance. Citizens and brands that dare to stay true to their values will fight back, but for now, we’re seeing brand purpose not only silenced but in retreat in the US.
Purpose under challenge is an opportunity for local brands
When some brands face challenges, others get an opportunity. Brand purpose helps your brand build more meaningful bonds with your customers, your colleagues and your wider stakeholders, and cuts through in the market, delivering more bang for your bucks. It’s simple: when your brand plays a meaningful role in my life besides just plugging products, your brand is building a relationship – it’s not merely transactional. Multinational brands like Dove and Starbucks have dominated the early purpose agenda, but as those brands face uncertainty, there’s a real opportunity for local brands to build brand love and conquer market shares.
Local brands are well-suited for brand purpose. Yes, local brands often have an advantage in their specific market because they are more familiar with the needs and preferences of their local customers. They also have better access to local suppliers, distribution channels and other stakeholders, which can help them gain traction and rally others around their purpose. Additionally, some consumers may prefer to support local brands because they feel a sense of loyalty or connection to their community, or because they believe it’s important to support small businesses.
From aspirational consumption to purposeful, transformative experiences
Aspirational consumption is here to stay, but there is an increasing trend challenging the “I am what I buy” mindset. Take travelling, for example: when you’re seeing your friends go on weekend trips to Paris, Riyadh and Bali every other month, it doesn’t add value. Instead, it’s more about challenging yourself, learning new things, and expanding your horizons. Let’s look at one of the world’s richest men: Mark Zuckerberg has all the money in the world to do whatever he wants, but happiness is not bought; it’s earned. Since 2009, Mark has given himself a new personal transformation challenge each year, from learning Mandarin to writing one “thank you” note a day. The happiness of buying new shoes is a short-lived dopamine kick, whereas finding better ways of living in balance with yourself adds lifelong value.
For advertising, it’s no longer about reaching people where they are but reaching “who” they are. In other words, it’s more about helping people go skydiving than selling them a new pair of trainers. 2025 will see transformative experiences rise. Take, for example, IKEA, which hosts cooking classes, furniture workshops, and yoga classes. An experience is not enough — how can you become your customer’s coach rather than a sleek salesperson?
Luxury and purpose will unite more in 2025
Luxury will also see more purpose in 2025, as we’re witnessing from car brands such as Porsche and Rolls-Royce. Rolls-Royce takes personalisation to the highest tier. With the Bespoke Configuration Studio, digital customisation with Rolls-Royce becomes effortlessly exclusive, offering options that no other luxury brand can match. Clients are more than customers; they are collaborators in a unique design process that considers every possible detail. Rolls-Royce helps their customers express “who” they are.
You don’t need to be born with purpose to embrace purpose in 2025
Not every brand is born with a purpose but finds its purpose, like people do. In the 1980s, Dove was known primarily for its advertising campaigns that emphasised the moisturising properties of its products. The ads featured the tagline “Dove is one-quarter moisturising cream.” Today, it’s a purpose thought-leader with numerous global awards and effectiveness accolades. 2025 will be the year where we will see more local brands dominate the purpose space and see innovative brands push the boundaries for how luxury and consumption can be redefined.
By Thomas Kolster, Council Member on the IAA’s Sustainability Council, Author of The Hero Trap, and the Founder and Creative Director of Goodvertising Agency.
