In an age of endless consumption, brands are fighting tooth and nail to be dubbed “cool.” It is not enough to be accessible, functional, or well-made. There are a million options for each product, and if a company does not consistently innovate, it will be lost in the void. Brands are in an ongoing tug-of-war with consumers. Individuals are constantly oriented toward buying, while brands continually innovate to attract consumers to their products. Brands are building cult followings, acting as friends to consumers to maintain loyalty and avoid becoming the alternative choice.
Consumption is connected to consumer psychology. Social identity is linked to being cool and buying cool products. Brands, therefore, aim to be associated with desirable groups whose membership brings a positive self-view. The concept of Identity Investment Theory (IIT) builds on this. It considers individuals as deliberate actors who make consumption choices to invest in identities that provide the greatest psychological return (i.e., greatest sense of alignment with social identity).
The psychology of consumption has historically shaped how brands market themselves. With IIT, the main driver in past years has been scarcity. It was determined that scarcity was the best marketing tactic because it aligned with ‘hard to get’ and therefore a more desirable IIT. Brands like Supreme have orchestrated limited drops that restrict the number of products on the market at any given time. This can position more average brands as ‘luxurious,’ a trait commonly attributed as desirable. On the opposite end of the spectrum, Walmart has always been viewed as a deeply uncool brand. Its attraction comes from its accessibility. The ability to produce cheaply was enabled by less ethical labour practices, and that has come under scrutiny. Walmart has made the transition to be more ethical by raising wages and improving production practices. It went from ultra-cheap to more mid-level, a niche that is dying out. They are now working to build accessible clothing in an industry with frequent exits and heavy competition among big conglomerates such as Amazon. These two examples raise questions of how to maintain a customer base in respective industries.
Modernity came with a shift as popularity dies out faster. TikTok virality is less desirable: it leans too heavily into the consumerist mindset and does not promote consistent growth. Thus, the prerogative has moved to building loyalty. This moves brands past a metrics game to one of considering real people. Brands must craft long-term cultural stories that address unique desires, positioning as a preference, not an option. To succeed, companies have to evolve alongside their customer base. Brands like Glossier or Bombardier Recreational Products have attempted to put this into practice by working with ambassadors. They select regular consumers (not just influencers) and invite them to events, or send them products pre-launch and ask for feedback. Lululemon demonstrated aligning itself with its consumer base through a community engagement strategy. They grew through grassroots efforts, engaging the audiences they sought to build relationships with and sharing their cultural story of building healthy, connected communities through movement. Using ambassadors, community initiatives such as run clubs, and discounts for doctors, coaches, and varsity athletes, they lead with human connection. They are creating experiences that echo customer values, aspirations, and desires. They build relationships, balancing big visions with minute details and fostering a sense of intimacy and care.
Overall, to stay alive in the current economic climate, human connection is of the utmost importance. People want to feel heard and see their visions or values reflected in the brands they consume. The labels that account for this and stay true to their cultural stories are the ones that will outlast the influx of brands.
