How Strong Brands Drive Business Value: Key takeaways from Piper's Investment Strategy
In a conversation with Yasha Estraikh, Associate Partner at Piper, we explore how strong brands create sustainable business value. With nearly 40 years of experience in brand investment, Piper's journey from brand consultancy to investment firm offers unique insights into the relationship between brand building and business growth.
The Evolution of Brand Understanding
When Piper started in 1985, brand was a nascent concept. As Yasha explains, "Even the word just wasn't even used or was commonplace. Definitely not in public imagination. People were still trying to figure out what brand meant and it was probably a logo at best." This limited understanding created challenges for early brand-focused investors, but it also presented an opportunity. Piper's unique positioning as brand specialists allowed them to occupy "this lovely niche of one for a while,"as Yasha describes it, before others began to recognise the true value of brand investment.
Today, Piper's investment strategy is firmly rooted in brand value. As Yasha articulates, "For us, a great brand is one which actually has a really positive impact on the business model and the long-term sustainability of that business." This philosophy has guided their investments across various sectors, with their current fund of over £100 million focusing on businesses turning over between £5 and £50 million.
Today, Piper's investment strategy is firmly rooted in brand value. As Yasha articulates, "For us, a great brand is one which actually has a really positive impact on the business model and the long-term sustainability of that business." This philosophy has guided their investments across various sectors, with their current fund of over £100 million focusing on businesses turning over between £5 and £50 million.
The Five Pillars of Brand-Driven Business Value
1. Smart Customer Acquisition
"Great brands can find new customers in smart and innovative ways. Actually what that really means is they're really good at driving word of mouth brand awareness," Yasha explains. "Whatever that magic is, people love talking about you. You've done something right. And it's probably because you've created a really strong purpose and somehow that purpose is aligned to you and your values and so you feel passionate not to tell other people about it."
This organic word-of-mouth marketing becomes particularly valuable in what Yasha describes as "today's brutal world of crazy digital marketing costs and trying to grab people's attention." The ability to generate natural advocacy and reduce customer acquisition costs creates a significant competitive advantage in today's crowded marketplace.
2. Enhanced Customer Retention
The second pillar focuses on customer loyalty and its impact on business economics. As Yasha notes, successful brands "can retain customers more than other brands. They've got more of a loyal community and that means a high repeat rate normally." He emphasises the financial impact: "It is free, if not far, far cheaper to get someone that's already a customer to buy again than to have to find a new customer." This improved retention translates directly to higher customer lifetime value, creating more sustainable revenue streams and better business models.
3. Premium Pricing Power
Strong brands can command premium prices without compromising market share. Yasha points to Tony's Chocolonely as an example: "Tony's do it really well. In food and drink, there's a lot of examples where people have broken the pricing rules. Tony's is like double the price of a lot of chocolate. It sits next to it and it does bloody well." He notes how they achieve this through "the double thickness and obviously the way you break it and the beautiful message of impact and purpose." This pricing power enables higher gross margins, providing financial flexibility for marketing, talent acquisition, and innovation."
4. Market Expansion Opportunities
Exceptional brands earn what Yasha calls "the license to go into new products, markets and channels." He explains this with Orlebar Brown's journey from a premium swim shorts brand to a complete lifestyle proposition: "What allowed it to stretch into new categories was the piece of brand work we did where we anchored the brand around Feel Summer. It's about this feeling of summer which is really rooted in kind of travel and that really elevated the brand." This strategic brand positioning enabled expansion "into lots of different categories" and helped build "dozens of stores across the world (...) very digitally led, it's very kind of an online business but then also has great wholesale, multi-channel, multi-territory, multi-product but it's really that brand halo that really helped it stretch."
"Great brands can find new customers in smart and innovative ways. Actually what that really means is they're really good at driving word of mouth brand awareness," Yasha explains. "Whatever that magic is, people love talking about you. You've done something right. And it's probably because you've created a really strong purpose and somehow that purpose is aligned to you and your values and so you feel passionate not to tell other people about it."
This organic word-of-mouth marketing becomes particularly valuable in what Yasha describes as "today's brutal world of crazy digital marketing costs and trying to grab people's attention." The ability to generate natural advocacy and reduce customer acquisition costs creates a significant competitive advantage in today's crowded marketplace.
2. Enhanced Customer Retention
The second pillar focuses on customer loyalty and its impact on business economics. As Yasha notes, successful brands "can retain customers more than other brands. They've got more of a loyal community and that means a high repeat rate normally." He emphasises the financial impact: "It is free, if not far, far cheaper to get someone that's already a customer to buy again than to have to find a new customer." This improved retention translates directly to higher customer lifetime value, creating more sustainable revenue streams and better business models.
3. Premium Pricing Power
Strong brands can command premium prices without compromising market share. Yasha points to Tony's Chocolonely as an example: "Tony's do it really well. In food and drink, there's a lot of examples where people have broken the pricing rules. Tony's is like double the price of a lot of chocolate. It sits next to it and it does bloody well." He notes how they achieve this through "the double thickness and obviously the way you break it and the beautiful message of impact and purpose." This pricing power enables higher gross margins, providing financial flexibility for marketing, talent acquisition, and innovation."
4. Market Expansion Opportunities
Exceptional brands earn what Yasha calls "the license to go into new products, markets and channels." He explains this with Orlebar Brown's journey from a premium swim shorts brand to a complete lifestyle proposition: "What allowed it to stretch into new categories was the piece of brand work we did where we anchored the brand around Feel Summer. It's about this feeling of summer which is really rooted in kind of travel and that really elevated the brand." This strategic brand positioning enabled expansion "into lots of different categories" and helped build "dozens of stores across the world (...) very digitally led, it's very kind of an online business but then also has great wholesale, multi-channel, multi-territory, multi-product but it's really that brand halo that really helped it stretch."
5. Talent Attraction and Retention
"Great brands can attract and retain the best teams," Yasha states. "The best people want to work for brands that define them and what they believe in and their values." This has become increasingly important in today's competitive talent market, particularly with purpose-driven initiatives. Yasha shares how being a B Corp impacts recruitment: "From an internal culture perspective, it's really powerful. People want to work for B Corps because it represents what they believe in. It's about doing good for the world."
Brand Experience Driving Business Performance
A compelling example of how brand experience directly impacts business performance is Ancient + Brave, a wellness supplements brand. During customer research, "People were saying how much they loved packaging, it's like they were saying how proud they were of putting it on their in their kitchen, on top of their cabinets and not hiding them away in a drawer somewhere." This visibility creates a powerful business impact, as Yasha explains: "Why do supplements work? Well, supplements work if you take them continuously. To continuously use them, you do need to remind yourself that they exist at home, and tucking them away in a cabinet actually isn't very helpful."
"Great brands can attract and retain the best teams," Yasha states. "The best people want to work for brands that define them and what they believe in and their values." This has become increasingly important in today's competitive talent market, particularly with purpose-driven initiatives. Yasha shares how being a B Corp impacts recruitment: "From an internal culture perspective, it's really powerful. People want to work for B Corps because it represents what they believe in. It's about doing good for the world."
Brand Experience Driving Business Performance
A compelling example of how brand experience directly impacts business performance is Ancient + Brave, a wellness supplements brand. During customer research, "People were saying how much they loved packaging, it's like they were saying how proud they were of putting it on their in their kitchen, on top of their cabinets and not hiding them away in a drawer somewhere." This visibility creates a powerful business impact, as Yasha explains: "Why do supplements work? Well, supplements work if you take them continuously. To continuously use them, you do need to remind yourself that they exist at home, and tucking them away in a cabinet actually isn't very helpful."
Building Brand Legends
For founders building their brands, Yasha emphasises the importance of sustainable growth: "Ultimately brands are kind of like living organisms, you've got to nurture them in the right way. A bit like babies, if they grow too quickly, they'll have growth pains. But if you actually grow them too slowly they'll have some kind of stunted growth." This careful balance of growth and brand building has helped Piper create what they call "brand legends" - brands that will be around in 50 years' time.
Brand building has evolved far beyond creating memorable logos or aesthetics - it's now a fundamental driver of business value. Through careful attention to brand development and customer experience, businesses can create enduring value that resonates with customers, attracts talent, and drives sustainable growth. As Piper's journey from brand consultancy to investment firm demonstrates, understanding and investing in brand building isn't just about marketing - it's about creating businesses that stand the test of time.
Want help?
Email us here or book an exploratory call here.
For founders building their brands, Yasha emphasises the importance of sustainable growth: "Ultimately brands are kind of like living organisms, you've got to nurture them in the right way. A bit like babies, if they grow too quickly, they'll have growth pains. But if you actually grow them too slowly they'll have some kind of stunted growth." This careful balance of growth and brand building has helped Piper create what they call "brand legends" - brands that will be around in 50 years' time.
Brand building has evolved far beyond creating memorable logos or aesthetics - it's now a fundamental driver of business value. Through careful attention to brand development and customer experience, businesses can create enduring value that resonates with customers, attracts talent, and drives sustainable growth. As Piper's journey from brand consultancy to investment firm demonstrates, understanding and investing in brand building isn't just about marketing - it's about creating businesses that stand the test of time.
Want help?
Email us here or book an exploratory call here.
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