Branding Wars: Affordability vs. Affinity

A new year. A clean slate. A chance to start fresh. We all get to start the new year with hope and optimism. But the best brands today take it as an opportunity for a chance to look back and learn, while also understanding what’s relevant to today’s consumer.  Affordability will be a top concern and be at war with brand affinity. The Best Global Brands according to Interbrand reported increases in global brand value to $3.6 trillion, up 4% in 2025. So what are the best brands doing well in a price sensitive market?

Whether you are creating a new marketing plan, starting on your 2026 goals, or shifting your strategy, a great place to start is figuring out where consumers are at with current perceptions of your brand. From the economy, technology, politics, and globalization, marketers today face overwhelmingly difficult decisions about shifting consumer priorities and how to best connect with the next generation in challenges times.  When disruption may be something you are contemplating in the new year, don’t forget these core strategies for your approach:

1. A Focus on the Foundation

   The best brands today are laser focused on addressing a singular human unmet need. For example, Booking.com increased their value this year by serving customers directly by hosting a platform to compare hotel prices easily. By investing in building long-term brand value through targeted campaigns, booking.com has showed their market presence and strengthened customer loyalty by getting back to the foundation of who they are, plain and simple. Brands that clearly provide value and affordability will succeed in 2026 like Booking.com.

2. Deep Connections & Value-Driven

   Customers want value. Brands need to deeply understand what value they provide but also easily connect with customers by not only delivering a simple message, but connecting with them online and in-person. For example, Target missed the mark this year by launching new designers and product lines to reach new customers, but forgetting about their brand’s core values. Corporate brands need to align with a brand’s product line values or customers will call you out. A breach of trust can quickly happen when brand strategy and alignment is broken. To avoid a brand blunder, make sure to test your messages and product lines with current AND prospective customers to understand key perceptions that may impact your ability to enhance value differently across customer segments. With affordability in question, when you lose alignment, you also lose trust and the ability to charge premium prices.

3. Digital & Experiential Disruption

   Ulta continues to offer a world of beauty products to the delight of its customers. The retail stores captivate shoppers with the latest brands, a wide variety of personal care products, skilled make-up artists, and much more. So much success brough rival Sephora to strike a deal with Kohl’s to bring their experience to more value customers by using the established footprint. Not only are the beauty stores are much loved, but an easy-to-use app and generous loyalty program have shoppers coming back for more. There is not an end in sight for Ulta’s best-in-class beauty retail brand due to their focus on delivering an exceptional customer experience online and in-person.

A new year deserves a new resolution. With customers focusing on affordability, there is an opportunity to enhance your brand affinity and value. To keep your promise, start by asking questions, reflecting on the past year, and moving forward with connection, alignment, and focus.  Schedule a conversation with us today at abbey@conversatelab.com.