Branding in the Digital Transformation Era × Lessons from the Past = A New Perspective on Branding

From the 1970s to the 1980s, during an era of mass production and mass consumption, the concept of “marketing”—which had not been widely discussed before—began to take root in Japan. In the advertising industry where I grew up, so-called scientific approaches to marketing and media theory became widely discussed. By the time we entered the 21st century, branding theories grounded in sociology and economics had become mainstream. Alongside this shift, the advancement of digital technology further accelerated these changes.
As society has grown more complex and communication channels have diversified and multiplied, it goes without saying that the way brands are communicated has also undergone significant transformation.
With the arrival of the digital age, both people’s lifestyles and their points of media contact have changed dramatically. Furthermore, the impact of the COVID-19 pandemic has forced us to adopt new ways of living in entirely different contexts.

In the past, brand communication primarily relied on mass media such as television and newspapers. Companies would place advertisements for their brands in these media to drive mass consumption.
From a creative standpoint as well, well-known celebrities were often featured, and the overall brand image was carefully controlled to stand out. Companies competed to invest heavily in media, aiming for high exposure—even reaching what could be described as a “noise level” of advertising.
Through increasing both exposure frequency and awareness, branding for products and services was achieved—what is commonly referred to as “reach and frequency.”

However, as times have changed, products and services have become more diverse and multifunctional. At the same time, shifts in the social environment—such as deflation driven by declining prices—have led to changes in marketing and branding strategies.
With the spread of digital technologies, the effectiveness of mass advertising has declined, and consumer awareness has evolved.
It is also evident that consumer behavior itself has changed significantly, with trends such as moving away from mass media, retail stores, and unnecessary purchases becoming increasingly prominent.

So, what has actually happened as a result?

It seems that “efficiency,” one of the key advantages of digitalization, has come to be highly valued.
Companies now rigorously manage planned versus actual performance, reduce inventory, streamline operations, and eliminate waste.
What was once difficult to control can now be quantified. From a management perspective, this is truly a welcome development—perhaps even a long-awaited era.
Moreover, with the introduction of AI, tasks that previously required human effort—or were even beyond human capability—can now be handled with ease. This has significantly contributed to improvements in efficiency. It is, without a doubt, remarkable progress.
However, let’s pause for a moment.
While I do not intend to deny the importance of efficiency, there is something we must not overlook.

That is the “emotional value that cannot be quantified.”

People are moved when they encounter something beautiful. They feel satisfied when they eat something delicious. They feel joy and warmth when treated with kindness.
Can such experiences truly be reduced to numbers?

From a textbook perspective, the elements that constitute a brand are often described as “functional value,” “emotional value,” and “experiential value.” Among these, can “emotional value” really be quantified?
Certainly, we can compare metrics such as the number of likes or star ratings.
But consider this: which is more delicious—a 2,000-yen five-star lunch praised by a million people, or a simple rice ball made by your mother when you were a child? Which holds greater value?
I believe that seeking a definitive answer to such a question is, in itself, somewhat meaningless.

What I want to emphasize is this: quantified data is, after all, just data. The true value of a brand lies in its ability to express and embody the “essential appeal” of a product or service.

<p>Now, let’s take a brief detour.</p> <p>Imagine a time without digital data or mass media.<br> Picture the Nihonbashi district of Edo-period Japan.</p> <p>Of course, the word “branding” did not exist back then.<br> And yet, instinctively, people must have been practicing what we now call branding.</p> <p>Merchants likely focused closely on their products, exploring their unique appeal.<br> Where does the value lie? Who is it for? How should it be communicated?<br> These are questions they must have continuously considered.</p> <p>For example, goldfish vendors in Edo would walk through the streets singing “Goldfish—goldfish!” while ringing bells.<br> Through such actions, they established what we might now call the “goldfish vendor brand.”<br> Residents would recognize the arrival of the vendor simply by hearing the voice and the sound of the bell.<br> This is, in essence, a form of brand experience.</p> <p>Likewise, gatherings around communal wells functioned not only as places for trading goods like fish and vegetables, but also as community hubs—what we might today consider a real-world version of social media, a center for word-of-mouth communication.</p> <p>Long-established shops that have endured for over a century likely built their brands in this way—by embedding history and culture into their identity and passing it down through generations.<br> From seaweed and soy sauce to tempura shops and local cuisine establishments, these businesses have carried their brand stories into the present day.</p>

In other words, the essence of branding itself has not changed.
Branding ultimately comes down to this: where does the true appeal of a product or service lie, and what kind of benefit can it deliver to users?

The way it is presented, communicated, enhanced, or decorated may evolve with the times, but the intrinsic value and essence of a brand do not change so easily.
In that sense, perhaps we do not need to overcomplicate it.

When we feel lost or uncertain, we often hear the advice to “return to the starting point.”
Even experts, when a computer stops working, will suggest restarting it once.
Branding is no different. When various ideas and strategies become overwhelming and unclear, it is precisely the moment to return to the basics and think simply.

When in doubt—restart.

Why not embrace this idea and revisit the past to discover something new?
The phrase “learn from the past to create the new” reminds us that no matter how much times change, the emotions we perceive as beautiful remain constant. In a world filled with ever-evolving methods, it encourages us to return once more to the essence.

By grounding ourselves in the question, “What is the essence of human nature and emotional value?”
we might even go one step further—from “learning from the past” to “creating from the past.”

Let us explore what has come before, and from it, shape new directions for the future.