It’s a time of great uncertainty for brands and businesses across the globe. With the imposition of global tariffs, the very real risk of global trade wars, and heightening geopolitical tensions, it’s likely we’re due to experience some serious volatility across the supply chain and retail landscape.
So, it’s no surprise business confidence has already taken a knock. We’ve entered the next chapter of permacrisis, and it’s feeling very real.
With the increase in uncertainty, budget cuts can soon follow, as businesses hold off making big decisions in the wake of tariffs and consumers tighten their belts to make every purchase count.
Prioritising reputation
While many brands might look to make quick savings, it’s imperative they continue to prioritise their reputation.
For example, tariffs on this scale will not just ripple into supply chains but act like a tsunami, with huge consequences – think delays, wage challenges, shortages, or pricier ingredients or components. This can lead to breakdowns in customer relationships, attract negative media attention, or even signal consumer boycotts.
Maintaining a good reputation is critical in helping businesses ride out this negative wave. When we talk about reputation, we are talking about how to influence what your audiences think about you. Whether they are employees, stakeholders, investors, shareholders, or customers, these audiences’ perceptions of you matter, as they can directly impact buying decisions.
Our own research backs this up. We spoke to 250 decision-makers in wholesale, hospitality, and foodservice to find out more about what reputation means to them and how influential it is in the buying process.
More details are in our Beyond Transactions report, but the majority (69%) said reputation is influential in their opinion of a business and their products. And 38% identified brand reputation as the main way to influence retailers to stock a product.
When asked how a brand or business could improve their reputation in their eyes, one in three said increasing transparency was important, and a quarter felt improving sustainability credentials would go some way in improving perceptions.
Values are hugely important, and alongside our quantitative research, we held several conversations with leaders across the industry, who unanimously pointed to the role of relationships in building and maintaining reputation in grocery. It highlights the need to create and preserve trust in business.
Authenticity is key
When anyone talks about reputation, it’s hard not to quote Warren Buffett’s famous phrase: “It takes 20 years to build a reputation and five minutes to ruin it.” However, it’s not as clear-cut as that.
It’s certainly not easy to build a reputation. It does take time and commitment. But if you do it properly and focus on being an authentic business, it can create a buffer – almost an insurance for when things go pear-shaped. KFC is a prime example. When faced with supply chain challenges in 2018, it leaned into the issue with clear communication that helped to avoid long-term reputational damage.
So, it’s important to put in the effort to create a solid reputation, through building strong customer relationships, fostering consumer loyalty and garnering stakeholder trust. You will be less likely to completely destroy your reputation should an issue occur, as your audiences will know and understand your values and can see the issue is out of character.
At a time when businesses are facing an increasingly challenging landscape, every relationship matters, and it’s critical to ensure you have considered how you are actively building and protecting your reputation.
By taking steps to secure it now, you can help weather not just this storm, but many more into the future. Don’t delay – those brands who prioritise reputation are more likely to thrive.
Tommy Gibbs is the head of corporate reputation at Cirkle
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