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The rise of digital brands There are five growth drivers that we predict will advance the number of digital brands three-fold in the next two decades. We look at these in more detail below. Figure 2. Drivers of digital brands
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Hyper personalisation
New wholesale opportunities
New distribution models
Regulatory developments
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Drivers of digital brands global expansion 1. Hyper-personalisation of products and services While many digital brands began as discount or no-frills services, today most are geared towards very specific segments and boast innovative business models, reaching customers that larger brands cannot. UK-based MVNO IQ Mobile provides mobile services for seniors with a strong focus on personalised customer care. They also partner with product manufacturers to provide easy-to-use devices, with simplified menus and large icons.
2. Operators are more willing to offer airtime on a wholesale basis Operators’ strategies and business models have evolved as markets mature and mobile subscriber growth hits a plateau. This, combined with other factors, have made operators more open to the idea of partnering with others to launch digital brands, either as MVNOs, joint ventures or sub-brands.
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