Leggings and a lesson on brand positioning 👖
GoColors, the leggings brand was listed in 2021 at a 90% premium to its offer price on the back of an issue that was over subscribed more than 135 times 🔥
Since then the shares are down almost 60% and same store sales growth has remained flat for 10 consecutive quarters 😥
Reason?
The brand was sharply positioned around leggings ~ a stand in for Indian churidar and an alternative to jeans.
Betting on this single trend while delivered handsomely initially, there’s a decline in demand for leggings post pandemic as the garment silhouettes widened and tastes evolved. Leggings are no longer the star they once were.
As brand builders we often talk about the rewards of sharply positioning a brand. But we seldom stress upon the fact that a sharp positioning cuts both ways.
While a sharp positioning offers significant benefits, it also carries inherent risks and trade-offs.
Your brand’s strength today, might become its weakness tomorrow.
As consumers evolve, your positioning needs to evolve too.
It’s not a one time exercise.
News Source : Mint
