What changes will come to the business environment in the future, and what can branding do to stay ahead of them?

What changes will come to the business environment in the future, and what can branding do to stay ahead of them?


The English word “purpose” is probably not yet a familiar word to Indian people. You may express your message by saying, our company’s vision is,” but if you begin with Our company’s purpose is,” only some people will understand what you want to say.

However, recently in India, we have been hearing more and more about “purpose” in business settings. Like vision, it is often used to talk about a company’s management philosophy.

Furthermore, in addition to the word purpose used alone, we also see the term purpose branding in the media. However, even if you know about branding, many people do not know about purposeful branding.

In this article, we will examine the latest branding methods, based on the concept of purpose branding used in Europe and America, and how it will be used in the Indian business world in the future.


First, understand “purpose” correctly.

In media articles about business, a company’s “purpose” is expressed as its “raison d’être.” However, the original meaning of this word is something held as a belief to obtain or do something.” Therefore, when translated into India, it is replaced with Indian words such as “purpose,” “intention,” and “determination.”

Perhaps the word “purpose” is used as a concept to express the raison d’être of a company, as it refers to the fundamental purpose or belief in the existence of a company. In this respect, it seems to be used in a larger framework that summarizes purpose and intention, as well as in Western media articles.


What is the background behind the attention paid to purpose?

The reason why a company’s purpose (raison d’être) has started to attract attention in India is thought to be largely due to changes in values throughout society.

Currently, people surrounding companies, such as consumers and investors (shareholders), are more interested in what a company does for society than in what the company produces and sells. Simply offering large quantities of cheap products will not make customers feel attractive.

Globally successful companies almost always have an unwavering purpose. Some companies clearly state this and make it public. Indian companies are probably following this trend and are starting to place more emphasis on purpose.

Purpose and purpose branding

Well, the theme of this article is purpose branding, but it can be said that this is a branding strategy related to corporate branding.

In business-related topics, purpose and purpose branding are sometimes used interchangeably, but is there a clear difference between the two?

First, purpose is one of the elements that make up a company’s philosophy, just like the mission and vision that a company should have.

Purpose branding is centered around a company’s purpose, which represents its raison d’être, what the company does for society, what philosophy it will operate under, etc. to realize the company’s purpose. You can think of it as one of your branding strategies.


Effects achieved with purpose branding.

By continuing to manage your business with the corporate philosophy at the forefront, you can produce various benefits and effects. I would like to highlight three particularly important points.


①Increase sales and profits

Companies that practice clear-purpose branding are more likely to align with the values of modern society, making it easier for them to gain sympathy from consumers.

This is because the recognition of products and services increases and the added value increases. Naturally, one of the management goals of a company is to pursue profits, so this will be a big plus for corporate management.


② Strengthening the trust of shareholders and business partners

Companies that actively contribute to society can increase the trust of their stakeholders. For example, the number of shareholders who invest in the company will increase, it will become easier to receive loans from financial institutions, and the number of companies that will offer their names as business partners may increase.


③ Improving human resource management functions

Younger generations have different values regarding work styles than before. When deciding where to work, I always choose a company that has a clear purpose branding. They choose a workplace because they are attracted to the company’s raison d’être.

It can be said that people who join a company of their choice will find their work rewarding, improve their workability, and be less likely to consider leaving their job.


Authentic American purpose branding

In American business articles, the expression “purpose of branding” is often used at the same time as purpose branding. It seems that the words are used to express almost the same concept without making a strict distinction.

Regarding the key points of purpose branding, it is introduced that it is important to emphasize strategic targeting and positioning, promote business based on management philosophy, and bring benefits to society.

Among them, I would like to explain the following two points of view that are worth mentioning.


  • Purpose Positioning

Positioning means establishing a company’s social position and its very reason for existence. A firm positioning earns a company the trust of society, including consumers, and ultimately benefits the company and society.


  • Purpose Reputation Management

Reputation refers to reputation, and purpose reputation management can be said to be an activity by which a company actively promotes its purpose. Simply put, it means making a company’s purpose known to society through various campaigns and promotional activities.

In addition, when building a company’s purpose, it is important to thoroughly consider the following themes within the company.


・What does your company want to express to society?

・What are your company’s core values?

・What are your ideas and beliefs?

・Who is the target customer?

・Why does society need your company?

・What kind of image do you want society to have?


Purpose branding, which is spreading in America and Europe, involves answering these questions and conducting branding with the proactive approach of management.


Purpose branding practiced in India.

In India, there is an opinion that there should be a clear distinction between purpose and purpose branding, but it seems that in many cases they are used almost as the same concept. Its purpose, as already stated, is to question the raison d’être of a company.

Companies carry out various activities to establish the significance of their company’s existence and have it recognized by society. That is corporate branding or purpose branding.

To gain sympathy from consumers, it is necessary not only to provide high-quality products and services but also to make the company’s philosophy easy to understand and to show that it values its customers. Companies that are currently successful or showing significant growth in their respective fields have one thing in common: they resonate with society.

It is believed that the ties between companies and consumers, and between companies and stakeholders, will become even stronger in the future, and companies that neglect purpose branding may face a crisis in their survival.

This is not just a theme for large companies. The time has come for small and medium-sized enterprises to demonstrate the significance of their existence.



Purpose branding may be a word that is difficult to grasp intuitively, but if you look at various corporate activities today, successful companies in India and overseas all have a clear purpose at the core of their management. I can see that there are.

From the opposite perspective, it can be said that corporate management that pursues only profits without a purpose will not work in the future of business. Future management strategies will need a purpose that is easily recognized by society.

Since ancient times, Indian people have not liked the tendency to pursue only profits and make money. So-called long-established stores are conscious of their responsibility to society, and have strong ties with their customers, calling them customers and valuing them.


In other words, purpose branding has traditionally existed in India.

Ironically, purpose branding is now attracting attention as if it were being re-imported from overseas. However, now is the time to reconsider purpose branding, which has been commonplace for Indian people, and to apply it once again to corporate management.


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