Black Brands E-Book

Fernando Olivares

• Herausgeber: Gedisa Editorial
• Kategorie: Bildung
• Sprache: Englisch

Seitenzahl: 684

Veröffentlichungsjahr: 2019

Beschreibung

Who manufactures cereal for Kellogg's? Why are the Mercedes Smart and the Renault Twingo almost identical? Do Danone and Nestlé really manufacture everything they make us believe they manufacture? Is Zara an opaque or a transparent brand? Why do some companies claim "we do not manufacture for other brands" when yet they hide from us the fact that sometimes "other brands manufacture for them"? The number of companies outsourcing the whole of their production for their brands in an opaque manner is constantly increasing while they disregard the legitimate need for information and communication of the general public and consumers. Paradoxically, in this age of transparency opacity is ever growing among well-known brands in every industrial sector. Black Brands (in the Age of Transparency) is an extraordinary piece of work on truths and lies, on transparency and opacity of leading companies and brands in our age. The book is full of relevant cases never discussed before in sectors such as consumer products, baby foods, fashion, vehicles and mobile phones. Insightful and incisive, Fernando Olivares has directed his team to produce this book that will educate us as citizens and consumers. Their goal is to promote honest transparency –the only way to attain corporate legitimacy and sustainability in our time.

Leseprobe

BLACKBRANDS

(intheAgeofTransparency)

BLACKBRANDS

(intheAgeofTransparency)

Whoreallymanufacturestheproductssoldbyleadingbrands?

FernandoOlivares(dir.)

ForewordbyAlRies

©FernandoOlivares,2018www.fernandolivares.com

©Authors,2018

©Foreword,AlRies,2019

©Introduction,JoanCosta,2018

©Translators,SonsolesArroyoPlanelles,VictorManuelPinaMedinaandIsaacPradelLeal

©Coverart,DanielRodríguezandFernandoOlivares,2019

Firstedition:June2019,Barcelona

Allrightsreserved.

©EditorialGedisa,S.A.

AvenidadelTibidabo12,3º

08022Barcelona,Spain

Tel[phone]

[email protected]

www.gedisa.com

Workconceptanddirection:FernandoOlivares

Graphicworkandtypographicdesign:DanielRodríguez

Infographics:MarinaGutiérrezwww.Llum.me

Prepress:

Moelmo,SCP

Collection:Comunicación

eISBN:978-84-17835-25-5

Nopartofthisbookmaybereprintedorreproducedorutilisedinanyformorbyanyelectronic,mechanicalorothermeans,inthesameform,extractedormodifiedofthisEnglishversionofthework.

ToMayandourthreebeautifultreasures,Manu,RocíoandFernando

Toourfamilies

9

TABLEOFCONTENTS

Foreword.........................................................................13

AlRies

Introduction......................................................................15

JoanCosta

Acknowledgements................................................................19

Preface...........................................................................21

FernandoOlivaresDelgado

PARTISCOPEANDNATUREOFCORPORATETRANSPARENCY

CHAPTER1.Theageofcorporatetransparency.....................................35

FernandoOlivaresDelgado

1.Introduction....................................................................35

2.Thewhysandwhereforesofcorporatetransparency..................................37

3.Corporatetransparencyunderstudy...............................................40

4.Transparencyspheresinthecompany..............................................43

5.Corporatetransparencyandlegitimacy.............................................52

6.Transparencyinthesupplychain..................................................56

7.Reputationalwealthinthesupplychain............................................58

8.Transparencyasthecorporatepost-truth...........................................66

Bibliographicreferences.............................................................67

CHAPTER2.Transparency,thekeytotrustintheworldofbusinessandbrands........69

ArturoPinedodeMiguel

1.Thecompany...................................................................69

2.Brand,reputationandothercorporateintangibleassets...............................75

3.Transparency:theskeletonoforganisations.........................................87

Bibliographicreferences.............................................................95

10

CHAPTER3.Fromtheproducttothebrandonatransparencybasis..................97

FernandoOlivaresDelgado

1.Introduction....................................................................97

2.Theidentificationofthemanufacturerinthebrand’sDNA............................99

3.Fromtheproducttothebrand....................................................103

4.Thesupremacismofthebrandwithregardtotheproduct.............................105

5.Theproductasabrand...........................................................107

6.Theproductasasourceofintangibles..............................................113

7.Thecommunicationofalliancesandcompaniesinbrandextension....................114

8.Thecustomer-centricityorientationandbrandtransparency..........................116

Bibliographicreferences.............................................................117

PARTIIBLACKBRANDSANDPRODUCTIVESECTORS

CHAPTER4.Blackbrandsinconsumerproducts...................................121

FernandoOlivaresDelgado

1.Transparencyasapillarofanewtypeofbrandbuildinginconsumerproducts..........121

2.Transparentbrands:manufacturers’brandsandprescribers’brands....................125

3.Opaquebrands:privatelabelsandblackbrands.....................................133

4.Whomanufacturesforprivatelabelsandblackbrands?...............................136

5.Casesofblackbrandsinthesectorofconsumerproducts.............................138

6.Transparencyindistributionchains:anempiricalanalysis............................147

7.Theimportanceofidentifyingthemanufacturerandassessmentofblackbrandpracticesforconsumers..................................................................151

Bibliographicreferences.............................................................156

CHAPTER5.Blackbrandsinfashion..............................................157

AndrésLópezMartínez

1.Fashionintheglobalisedworld...................................................157

2.Theapplicablelegalandregulatoryframeworkontextileandfashionlabelling...........168

3.Societyismoved,startsmovingand(r)evolutionstarts...............................177

4.Themaybe"black"majorfashionbrands............................................181

5.Therevolutioninthefashionindustry(conclusionandfutureapproaches)..............203

Bibliographicreferences.............................................................212

11

CHAPTER6.Blackbrandsintheautomotiveindustry...............................213

ArmindaPérezMarín

1.Introduction....................................................................213

2.Strategicandbrandalliancesintheautomotiveindustry..............................215

3.Lightsandshadowsinthesparepartsandtherepairgaragesectors....................229

4.The(concealed)lowcostbrandsintheinsuranceandcarrentalsectors.................238

5.Conclusions....................................................................244

Bibliographicreferences.............................................................245

CHAPTER7.Blackbrandsinbabyfoods...........................................247

RafaelMiraAlmendros

1.Introduction....................................................................247

2.Atacrossroads–thedilemaofbabyfoodcompanies.................................248

3.Thestrategicsolutionforcompaniesinthebabyfoodindustry........................252

4.Conclusions....................................................................254

Bibliographicreferences.............................................................255

CHAPTER8.Blackbrandsinthesmartphoneindustry..............................257

AlbertoPinillosLaffónandDanielRodríguezValero

1.Premiumbrands,areallthingsthatglittergold?.....................................257

2.Everyoneonthelistissomebody,butnoteveryoneisonthelist.......................259

3.Identitieshiddenintheshadows..................................................268

4.Thesilenceofthewolves.........................................................280

Bibliographicreferences.............................................................282

PARTIIILAWS,REGULATIONS,CONSUMERSANDBLACKBRANDS

CHAPTER9.Legalformulaeattheserviceofblackbrands-Compatibilitywithtrademarklawandunfaircompetitionlaw.......................................287

EsperanzaGallegoSánchez

1.Introduction....................................................................287

2.Legalformulaeattheserviceofblackbrands........................................289

3.Compatibilitywithtrademarklaw.................................................294

4.Compatibilitywithunfaircompetitionlaw..........................................299

Bibliographicreferences.............................................................303

12

CHAPTER10.Reasonsandimpactofthemanufacturer’sidentificationon(food)productlabels............................................................305

PilarMonteroGarcía-Noblejas

1.Introduction....................................................................305

2.Themanufacturer’sidentityintheregulationsonfoodproductlabelling................306

3.Thefigureofproduceranditsconsequencesforliability..............................316

4.Themanufacturer’sidentityasanessentialpieceofinformationforconsumers...........319

5.Conclusions....................................................................323

Bibliographicreferences.............................................................323

CHAPTER11.Informationtoconsumers:therighttoexercisethepowertochoose......325

FernandoMónerRomero

1.Introduction....................................................................325

2.Rightsandconsumers...........................................................328

3.Labels:theIDcardofproducts....................................................329

4.Theimportanceofincludingtheoriginandthemanufactureronlabels.................333

5.Truthfulnessandconcretionofinformation,withcontrol.............................338

6.Conclusions....................................................................339

Bibliographicreferences.............................................................340

CHAPTER12.Digitalidentificationoftherealmanufacturerofabrandedproduct.....341

GabrielIzardGranados

1.Theidentificationofthebrandedproductmanufacturer..............................341

2.Informationveracityandreputation...............................................344

3.Automaticidentificationsystems..................................................345

4.Conditionsfortransparencyinidentifyingtherealmanufacturerofabrandedproduct...352

5.Conclusions....................................................................356

Bibliographicreferences.............................................................356

Afterword.........................................................................357

FernandoOlivaresDelgado

Abouttheauthors.................................................................359

13

Foreword

Inthebusinesscommunityinthe21stcentury,thetwomost-fearedwordsintheEnglishlan-guageare“transparency”and“privacy.”

SocialmediasiteslikeFacebookarefacingseriousproblemsbecauseofprivacybreaches.InAmerica,FacebookInc.setaside$3billionforanexpectedfinefromtheU.S.governmentforprivacyviolations.

InEurope,underanewprivacylawthattookeffectinMay2018,companiesthatmis-handledatacanbefinedupto4percentoftheirannualglobalrevenue.

InCanada,regulatorsfoundthatFacebookcommitted“serious”breachesoflocallawsoveritsmishandlingofusers’personalinformation,announcingtheywouldtakethecompa-nytocourttoforceittochangeitsprivacypractices.

WhilesocialmediaandotherInternetsitesworryaboutpossibleprivacyviolations,thelargerbusinesscommunityfacesanevenmoreseriousproblem.

Transparency.

Asbusinessgoesglobal,thetransparencyproblemisgoingtogetworse.Consumerswanttoknowwhoandwheremakestheproductstheybuy.Productsthathidetheiridentitiesarecalled“BlackBrands”bytheauthorsofthisinterestingandauthoritativebook.

Whatmanyconsumersdonotknowisthatthemanufacturersofsomeoftheirmost-re-spectedconsumerbrandsalsomakethesameidenticalproductsforsaleunderprivate-labelbrandsofothercompanies.Andusuallyforsaleatmuch-lowerprices.

Whywouldacompanycompetewithitselfbyproducingidenticalproductssoldbyoth-ercompaniesunderotherbrandnames?

It’sthe“economicsofscale.”Thelargertheproductionrun,thelessexpensiveeachunitbecomes.Oneofthemajorwaysthatcompaniescanreducetheirproductioncostsisbyin-creasingtheirproductionoutput.Andtheycandothatbysellingtheirsurplusoutputtooth-ercompaniestosellunderdifferentbrandnames.

Thistrendisgoingtocontinueuntilconsumersbecomeawareofwhatisgoingoninthebusinessworldtoday.

TheauthorsofBlackBrandsdeservealotofcreditfortakingthisfirststepinbringingtransparencytobranding.

AlRies

15

introduction

Thosewhofavourmeasurementshavenownewindicatorstoassessthevalueoftransparen-cyincompaniesandcorporatebrands.ThisisoneofthepracticalconclusionsthatcanbedrawnfromthisstudycollectivelyauthoredbyexpertsundertheleadofDrFernandoOliva-res,DirectoroftheChairofCorporateBrandingattheUniversityofAlicante(Spain).

Whilethereisauniversalagreementonthemeaningoftheterm“value”assomethinghavingafunctionalorpsychologicalutility,thesameterm“value”canforksemanticallyintotwodifferentdenotationswhenitreferstocompanies.Iamtalkingabouttwotypesofvalues:(1)financialandstockvalues,and(2)moralvalues.Transparency,obviously,fallsintothesecondcategory–althoughitmayhaveindirecteffectsonthefirstone.Nonetheless,thepub-licatlarge,publicopinionandparticularlyusersandconsumersvaluethequalityofcom-paniesandbrandsaccordingtotheirperceptionand,aboveall,theirexperienceofthemoralconductofcompanies.

Consequently,theinformationbehaviour–whichispartoftheglobalbehaviourofacompany/brand–isespeciallysignificantwhenopacityorsilencerepresentsasuspiciousreali-ty.Opacityhideswhatthepublicshouldknowand,therefore,itcreatesdistrust.

Theproblemofcorporateandbrandtransparencyshouldbeaddressedwithaprimeobjective:credibilityandtrustinthem.Abrandistransparentonlyifthecompanyoperat-ingunderitis.Butbrandshaveanemotionaladvantage–characteristicoftheirsymbolicfunction–thatcompanies(artificialpersons)lack.Thegeneralpublicrelateswithbrandsinasentimental,emotionalmanner,whichgeneratesasocial–indirect–bondwithcompanies.Despitethisloop,emergingfromcompaniesandreturningtothem,itseemsthatcompa-nieshaveforgottenaboutthe“publicopinionmarket”,whichisadigitalandviralmarketinthemedia.

Thosearesomebriefideasstemmingfromthisbook,whichfocusesoncorporateandbrandtransparency,especiallyinproductivesectors,basicallyindustrialandmanufactur-ingsectors.Iwouldlike,however,toaddsomeconsiderationsaround“blackbrands”con-cerningissuesrelatedtotransparencymanagementintheservicesector.

Letustakethreedichotomouspairs:transparency-opacity,essence-appearanceandsimplicity-complexity.Theseshouldbeusedasconceptualtoolsformanagement.

16

blackbrands

INFORMATIONTRANSPARENCYANDSERVICE

Informationisintangibleandisavaluebothinthejournalisticsenseoftheterm(news,ve-racity,service)andinthemathematicalsense(measurementoftheamountofnovelty,ofin-formationorcomplexityofamessage,anorganisationorasystem).Fromapsychologicalperspectivemoredowntoearthinourdailylife,commonsensetellsusthatinformationisnews:whatwedidnotknowandispartofreality.Ifweapplythistocompanies/brands,theyareonlyrequiredtoadoptthisattitudefromtheperspectiveof“publicinterest”onavolun-tarybasis.Thisistheonlywayforinformationtransparencytobecomeyetanotheratomofagoodpublicimageandcorporatereputation.

AESTHETICSOFAPPEARANCE

Corporateandbrandtransparencyhasanambivalentmeaning;firstly,informationtranspar-encyasaservicetothepublic(whatthey“mustknow”)involvingthemoralaspect,andsec-ondly,theaestheticsofappearance,which,assuch,isacomponentofcorporateandbrandbehaviourbelongingtothephysicsofcommunication.

Intheuniverseofobjects,design,fashionandarchitecture,thesymbolismoftransparen-cy–lightandevident–arousesfeelingsofveracityandevenofpresent.Alongtimeago,Japa-neseindustryinventedminiaturisation,lightnessandmanageabilityofobjectsmakingthemmoreuser-friendlyandconvenient.Fashionandarchitecture,bothcorporateandinteriorar-chitectures,alsopromotetheaestheticappealoftransparency.Twoexamplescometomind,bothfromthefinancialsector,funnilyenough.Buttheywillnothurt,becausetheycanleadustothesaleofintangibleassetstogetherwiththecompleteoutsourcingofproductionbybrandsthatareconcealingthisfromconsumers,whoareentitledtothisinformationright.

Itwasinthenewsrecently.TheSundaysupplementoftheSpanishnewspaperElPaísreportedaboutaninitiativetakenbyabankintheBasquecountry,whosemainchallengeistransparency.Anexcellentteamofarchitectswashiredtodesigntransparentoffices.Thekeyfeaturewasthattheusualbrickandmortarwallswerereplacedwithtranslucentwalls;nottransparent,becauseitwouldhavebeenchaos,buttranslucentsothelightwouldgothroughtheroomsprovidingaglimpseofthepeopleworkinginthembutwithoutshowinganydetails.Thiswasthefocalpoint.Theproblemisthatthistypeoftransparency,albeitwelcomedasaninitiative,hasnobearingonpeople’sbehaviour,theservicequality,theefficiency,theattentiontoclientsorthecorporatetransparency.Inanycase,anaestheticappearanceisagoodallybe-causeitaimsatbeinglikedandthisisagoodstarttogeneratesympathy.Itwouldbeagifttobeabletoknowthewholeplanfortransparentpracticesbythatpioneerbankpastthosetrans-lucentwalls.

17

Introduction

Onadifferentscale,butfollowingthesamelogic,Icanthinkofagiantinthatsector,DeutscheBank,andtheimpressiveskyscraperofitsheadquartersinFrankfurt.Aconcreteheadofficeofsuchproportionsdominateswithsuchapowerfulpresencethatitisalmostin-sulting.Thosebuildingsaretransparent,covertandalmostinvisible(the“aestheticsofdisap-pearance”byPaulViriliocomestomind).Glasscompletelyreplacesconcrete,andstainlesssteelcoversthestructure.Thebuildinghasbecomeacolossalmirror.Notonlydotheskyandcloudsreflectonit,buttheysurrounditandcrossit.Materialcorporealityofarchitecturehasbecometransparentandliterallydissolvesintheair.Completetransparency...oftheappear-ance.But,ofanythingelse?

TRANSPARENTSIMPLICITY

Complexitytheorydistinguishesbetweenthestructuralcomplexityofcompanies(organisa-tion)andtheirfunctionalcomplexity(communication,action,management).Itdemonstratesthatitispossibletodissociatebothcomplexities.De-bureaucratisationandde-centralisationarepossible,butwhentheyarenotpossible,communicationandmanagement,i.e.servicetoclients,havetobesimplified.

Thus,internalcomplexitydoesnothinderexternalsimplicity.Inotherwords,Idonotcareaboutthestructuralcomplexitiesortheinsidesofmycomputer;whatIwantisfunction-alsimplicity,speed,ease,performanceandzerodysfunctions.

Information,whichispartofcommunicationandmanagement,canbecomplexandobscureorsimpleandtransparent.Withthisideainmind,wecanlookagainatthebankingsector.Letuslookfortransparencyinthelegaldocumentsofserviceagreementswithcli-ents(rightsanddutiesofbothparties).Thisisataboosubject.Letusmakeacursoryexam-inationtakingaquickglance:toomanypages,toomuchtext,toomanyclausesandafontsizethatissominuteandtightthatwefeeldizzyevenbeforestartingtoread.Oh!Formisimportant.Nodoubtallofthatcan–andshould–bechanged.Thereisnoprobleminword-ingthesamethinginatransparentandeasymanner,i.e.understandable.Theextensioncanbereducedandfontsizecanbeenlarged.Andmakethebankandthebrandtransparent.

Thisisthemostconspicuous“blackbrand”inthebankingsector.Howmanyagreementsaresignedbyclientsnotknowingwhattheyweresigning!Whereistheleaderofthepomp-ous“CorporateTransparency”?Isthereanyoneinbanksthatreallywantsit?

JoanCostaFounder-PresidentofJoanCostaInstitute

19

ACKNOWLEDGEMENTS

Writingthisbookonsuchadelicateissueascorporatetransparency(oropacity)andbrands,aboutwhichalmostnothinghasbeenwritten,wouldhavebeenimpossiblewithoutthecollab-orationofbusinesspersons,companymanagersandformermanagersfromvariousindustrialsectors,especiallyfromtheconsumerproductindustry.Theirinformationandexplanationsonwhatseemstobenowausualpracticeineveryindustrialsector–thetotaloutsourcingofproduction–hasprovideduswiththenecessarycluestoproducethiswork.

IthankthemembersoftheResearchGroupofCorporateBrandingattheUniversityofAlicante(Spain),UA_Brandscience,fortheirparticipationhere,inBlackBrands(intheAgeofTransparency),aswellastheparticipationoftheotherco-authors,whoareprofessionalsofrenownedprestige,forhavingacceptedmyproposaltoponderandwriteonthisissue.IthanktheconsultancyfirmLLYC(LlorenteyCuenca)fortheirsupport,especiallyArturoPinedo.IthankmyuniversityforconsideringmetodirecttheChairofCorporateBranding,whichwasthedrivingforceforthisvolumeandmanyotherstocomesoon.

IthankAlRiesandJoanCosta,twooftheworld’stopexponentsinthefieldofbrands,fortheirfantasticandglowingforewordsinBlackBrands.ItissuchagreathonourthatourworkislinkedbothtothenamesofAlandJoan.ThankstoRaulG.DelRio,colleagueandgreatexpertinbrands,forintroducingmetohisfriendAl,makingpossiblehisparticipation.IthankMarinaGutiérrezforhavingacceptedthechallengetodesignthecomputergraphicsofthisbookwithsuchstylishandwonderfulresults.IwouldalsoliketothankSonsolesArroyo,VíctorPinaandIsaacPradelfortheirgreatjobtranslatingthisbookintoEnglish.

IthankAndrésLópezforbeinganexcellentstudentandfellowandfornowbeingmysupportpersoninthisproject.IwouldliketothankJaumeAlemañtoo,holderofaMinis-terialgrantandcollaboratorwithme,forhisexcellentsupportworkingraphiccommuni-cationandfinalartwork.IthankCarolinaHernández,memberoftheProductionDepart-mentofEditorialGedisa,forherprofessionalismandkindness.Thisworkwasoriginatedanddeveloped,aswellasatmeetingsinseveralofficesattheUniversityofAlicante,aroundsev-eralsuperbmealsintherestaurant“Terre”inAlicante.IalsothankmyfriendLuis(Villena,Alicante,Spain)forsendingmeinterestingmaterialforthisbookandforalwaysbeingthereforme.

ThankstoBrandidos,theinformalnameofthegroupoffivegoodfriendsunitedbyourdedicationtobrands(JavierGarcíaGómez-Die,IgnacioLópezdeZamora,AlbertoPinillos,

20

blackbrands

DanielRodríguezandmyself).Iwillalwaysrememberourmomentsoflaughterwithagoodwine,almostalwaysmadeinAlicante.IthankmyfriendElizetedeAzevedo,forbeingthebestambassadorofMarcasNegrasandBlackBrandsinBrazilandthroughoutLatinAmerica.

ThankstomywifeMayte,forhergenerosityanddedicationtoeverythingofours,whichhasallowedmetotravel,readandwritethisbook.Allthishasbeenpossiblethankstoyou,Mayte.

21

PREFACE

FernandoOlivaresDelgado*

InFebruary2016,aSyrianfamilywasfoundconcealedinthetrailerofaSpanishtruckhavingBirminghamasfinaldestination,whichhadbeenloadedwithcerealbyitsdriver.ThefamilywasfoundduringthecrossingoftheChannelinoneoftheferriesthatregularlyoperateontheCalais-Doverroute.1DesperationwasthedrivingforcefortheparentstotraveltoEuropewiththeirthreeyoungchildren,escapingfromthewarrampagingtheirhomelandeversince2011.Andtheyweredoingsoasstowaways,concealingthemselvesinatruckoftheSpanishtrans-portcompany“TránsitosFríosBurgaleses”.SofaritwouldjusthavebeenanotherpieceofnewsontheSyriantragedy,onthedesperationofafamilycapableofanythingwiththepurposeofreachingtheheartlandofEurope.

Nevertheless,thisnewsarticleonahumanitarianincidentunveiledanotherbrandingrelatedincident–relatedtoatrademark–whichhappenedtobeeye-catchingtous.Thisitemofnewsunveiledahiddenrealityofthecorporateworld,andbranding,whichareattheheartofthisbook.WhatwasatruckloadedwiththousandsofboxesofcerealdoingonitswayfromthebakingandbiscuitcompanyGullón(inAguilardeCampoo,Palencia,Spain)totheKellogg’sfactoryinBirmingham(England)?WhydidbothKellogg’sandGullónpretendnottobeconcernedbytheincidentand“droppeddown”thesmallBurgos-basedtransportcompanywhichhadbeenresponsiblefortheregulardeliveriesofsuchshipmentswithanoutstandingbalanceof50,000Eurosworthofpendinginvoices?

Mostprobablythediscretionofbothfoodprocessingcompanies,GullónandKellogg’s,concealsaproductionoutsourcingagreementbetweenthem,aswellastheregularshippingofcerealbarsmanufacturedonthebasisofa“turnkeysystem”bythePalencia(Spain)biscuitbakeryfortheworld-renownedMichiganbrand.ThefindingofaSyrianfamilyinaSpanishtruckunveiledtheexistenceinthefoodprocessingindustryofwhatwehavenamed

*DirectoroftheChairofCorporateBrandingattheUniversityofAlicante,Spain(UA)andDirectoroftheResearchGrouponCorporateBranding,UA_Brandscience.SeniorLecturerofCommunicationandCorporateBrandingattheUniversityofAlicante.

1.Variousauthors,“Cuandolaguerrasesubeatucamión”,DiariodeBurgos,14February2016.Availableathttp://bit.ly/2v2a4id.

22

blackbrands

as“blackbrands”.Wehavedesignatedthosebrandsas“black”becausetheydrawadarkandopaquecurtainhidingvaluableinformationfromtheconsumer,andfromsocietyasawhole,inrelationtotherealproducerbehindthemanufactureofagivenproduct.Suchbrandsareblackbecausetheyavoidsheddinglightontherealfactsbehindtheirmanufacturingpro-cess.Blackbrandsinvolvetheopaqueoutsourcingtoathirdparty,andthecompletesubcon-tractingofthemanufactureofagivenproduct.

Whatistrulyremarkableintheprocessofblackbranding,asthefinaloutcomeofthe“maquiladora2.0”outsourcingprocess,isthatitisevermorecommoninthebrandingoffoodproducts–includingbabyfoods–,forwhich–ontopoflegitimatebusinessconcernsmostoftenrelatedtotheongoingprocessofcost-cuttingproduction–foodsafety,healthconcerns,andtherightoftheconsumeraswellasofotherstakeholderstoclear,transparentandtrust-worthyinformationshouldcomefirst.

Despiteadvertisingandinformationcomingclosetosaturationpoint,despite“infoxi-cation”–theintoxicationstemmingfromtheexcessofinformation–,despitetheubiquityandthepervasivenessofbrandsinourdailylives,anddespitethesignificantempowermentandtheactivismofconsumerorganisations,theplaintruthisthatconsumersremainalmostblindfoldedwhenfacingtheirusualbrandsonthesupermarketshelveswhentheydotheirshopping.Indeed,theyusuallyignorefundamentalmatters,suchastheidentityoftherealmanufacturerbehindagivenproduct.Supermarketshelvesarefullofproductsandbrandsthatarenotactuallymanufacturedbywhomwebelieve.Nevertheless,manybrandspretendtobe“sociallyresponsible”oreventransparent,butareunscrupulouslyunfaithfultothetruthdenyingthehardfactsbehindtheirproductionprocesses.Andtheydosobecauseintheirheadlongdash–socommonnowadays–theyexpectthatbyrepeatingadnauseamthemottothat“itisthebrandthatmatters”,themessageshallpermeatethesubconsciousmindofthecommunityandthattheunderlyingmessageshallalsobecome“theproductisnotimport-antanymore”.Precisely,inthisbookweclaimtheprominenceofthenarrativeofboththeproductandtheproduction-relatedprocessesastherelevantfactorsbehindtheimageofbrandsandthesustainablesuccessofpresentandfuturebusinesses.

Theleitmotifofthisvolumeisthetransparencyofcorporateinformation,aswellasitsopposite,theopacitythereof,inrelationtobothcorporatebrandsandconsumerproducts(hereinafter,CPs),aswellasinothersectorsofmassconsumption,suchasthefashion,theautomotiveandthemobiletelephonesindustries.Ourmaingoalistoestablishthecurrentsituationonthematter,tospuradiscussion,andtosuggestappropriatemeansandmeasuresthatshallhaveaninfluenceonthecorporateworldtobeginthejourneytowardstransparen-cyortopersevereinsuchapathtowardscommercialandbrandtransparency.

Mostoften,whendiscussingthematterofbrandswithlittletransparency,itisfirstlypri-vatelabelsthatcometoourminds,i.e.theproductsmanufacturedbythirdpartiesthatre-mainanonymoustotheend-consumer,andthataremarketed(withorwithoutabrandname)

23

Preface

bylargeretaildistributioncompanies.Nevertheless,thoseareonlytheheadsofacoin,ofwhichthetailsofsuchopacityare“blackbrands”:theproductsofawell-knownandrenownedcom-panymarketedandpresentedastheirownproduction,butwhosemanufacturehasbeenout-sourcedinrealitytoathirdparty,whoseidentityremainsalwaysconcealedfromtheaverageconsumer.Withprivatelabels,opacityisatleastcompensatedbyaffordableprices,asatrade-offofwhichtheconsumerisaware(privatelabelsaredeliberatelyopaque;thereisnofraudordeceit),whereasregardingblackbrands,consumersareunawareoftheproduction-relat-ed“cheat”concerningtheirfavouritebrand,arousingthereforeafeelingofdeceptionanddisappointment.

ThisworkissomehowthesequelofthepreviousacademicpaperRebeliónenlasmarcas(Olivares,2012)andittookoffatthebeginningof2017,onthebasisoftheresearchprojectoftheUniversityofAlicanteMarcasenGranConsumoyprincipiosdelanuevaeconomía:co-laboración,comunicaciónytransparencia,whereresearchers,academicprofessorsandre-nownedpunditsandprofessionalsparticipated,mostofthemresearchersattheUA_Brand-sciencethinktank–aresearchcentreonCorporateBranding.ThisworkhasthesupportoftheChairofCorporateBrandingoftheUniversityofAlicante(Spain).

ThemainmotivationdrivingtheworkoftheauthorsofBlackBrands(intheAgeofTransparency)istoadvocateforthefundamentalrightofconsumers,aswellasoftheotherstakeholders,tobeinformedatalltimesandwithanabsolutetransparencyofallthesubstan-tialandrelevantmattersconcerningbothcompaniesandbusinesses,aswellastheirbrandsandtrademarks.Wehaveaparticularinterestinoverallcorporatetransparencyandinthetransparencyconcerningtherealityofproductionandmanufacturing,aswellasregardingbrandingandmarketing.Wealsohaveaninterestininvestigatinghow,bymeansofcommu-nicationandbrandrelatedtransparency,i.e.concerningtheidentificationoftherealmanu-factureroftheproduct,thereputationalflow,almostexclusivelyfocusedonthemarketeroftheproduct,isactivated.Thereisanunderlyingordormantreputationthatisattributabletothelinksinthevaluechainthattakepartintheshadowsinthemanufacturingprocessofaproduct.Whensigninganoutsourcingagreementtomanufactureproducts,somecom-paniesareobligedtosignafurtherconfidentiality–nondisclosure–agreement.Anonymityandwaivingpopularityandreputationbuildingareincludedintheprice,butanotherques-tionarises:towhatextentconsumersaswellastheotherstakeholdersmaybedeniedtheaccesstotruthfulinformation?Eachandeverycorporateactionissubjecttothescrutinyofstakeholdersandofsocietyasawhole.

Isn’tthejourneytoproduction-relatedtransparencyanopportunityforallpartiesin-volved,whichshall,amongotherthings,allowforsharingandredistributereputationalrisksbetweenallofthelinksalongthesupplychain?Intheageoftransparencywhatisthepointofpreventingthirdpartieswithamajorroleinthevaluechainfrombuildingtheirlegitimatereputationalvalueinstrategicintangibleassetsbymeansofthecommunicationofcontracts,

24

blackbrands

productioncooperationagreementsorstrategicpartnershipswithwell-knownandreputablecompanies?Inthiscase,thelackoftransparencyisanobstacletothelegitimatesourceofvalueandcompetitivenessofsuchthird-partycompanies.

Itgoeswithoutsayingthatherewearenotquestioninganybusinesspracticesorpro-duction-relateddecisions.Ourmainfocusinthisbookistoanalysewhetherthosepractices,normallybasedonsubcontracting,outsourcingorproductionpartnerships,areaccompa-niedbythecorrespondinginformation,communicationandtransparencytowardsend-con-sumersandtheotherstakeholders.

Businessandcorporaterelatedmatters,concerningbothconsumptionandbrands,aremattersofsufficientimportanceatalllevels(economic,environmental,social,political,cul-tural,etc.)tolaunchaneducationalprocessaimingtoenhancethecollectiveawarenessandknowledgeontheseaspects.Isitethicaltoconcealfundamentalandsubstantialinformationfromconsumerssuchastheinformationreferringtotherealmanufactureroftheproductthattheyareusing,especiallywhengloballywell-knownbrandsareinvolved?Isitpossiblethatconsumers’expectations,intentionsandpurchasingbehaviourregardingcertaincompaniesandtheirbrandsarepartlymotivatedbysuchomissionofrelevantinformation?Whatistheimpactofthedisclosedinformation,whichismostoftenmoreplausiblethanaccurateandtrue,onindividuals’decision-takingprocesses?Whataretheconsequencesatalllevelsofnottellingwhatshouldbetold?Toalargeextent,thatistheheartofthematter.

Thediscussiononbrandtransparencyinformationisaparticularlypassionateoneintheageoffakenewsandpost-truth.Actingproactivelytowardsreliableandevidence-basedin-formationisthebestandmosteffectiveantidoteinthecurrentcontext,whichisburdenedwithambiguities,misrepresentations,falsehoodsandanincreasingdiscredit,whichamongotherthings,representathreattothereliabilityandreputationofcompanies.Whatistrue?Whatisaccurate?Whatisreal?Whatisrelevant?Whatislegal?Whatisethical?Whatdoesahalf-truthconceal?Whichpartofthecorporaterealityisnotapartofthenarrative?Themanagementoftransparencyisoneofthenecessarymeans,albeitinsufficientbyitself,torestorethereliabilityandthecredibilityofbothcompaniesandbrands.Togetherwiththeuncom-promisedcommitmenttothedigitalrevolutionthatBlockchainrepresents,businessesmayfacethechallengesthattheirbrandsareconfrontedwithandtakethelead,withcertainguar-anteesandintheirowninterest,inbeingandtellinginanopen,honestandtrustworthyman-ner.Whenbrandscommunicatetoconsumersthetruthontheirproduction-relatedreality,theybecometransparentandshallnotbeconsideredas“blackbrands”anylonger.

BacktothecaseoftheSpanishtruckloadedwithcerealbars,atUA_Brandsciencewewonderifaconsumer,whenpurchasingcerealbarsbearingtheKellogg’sbrand,shouldbein-formedofthefactthatthebarsareactuallymanufacturedbythebakeryGullón.Wefirmlybelievethattheanswershouldbe“yes”.IfeverystakeholderwereopenlyinformedthatsomeoftheKellogg’sbrandedproductsareactuallymanufacturedbyGullón,whatwouldbethe

25

Preface

reputationaloutcomeforbothcorporatebrands?Wesuspectthatitwouldhaveanimpactonthereputationofbothcompanies.Intermsofreputationalreturn,itispositiveforGullóntoproduceforKellogg’s;whereas,apriori,ifKellogg’ssilenceontheproductionoutsourcingofsomeofitsproductstolesserknowncompanieswereknownbythegeneralpublic,itwouldnotbeaspositiveforitsreputationandleadingposition.Butthisisonlyapriori,sinceitalldepends;itwoulddepend,forexample,onthepersonalityarchetypethatKellogg’swouldpresentinanad-hocbuiltandcommunicatednarrative.IfKellogg’swouldopenlyandpub-liclydisclosethe“friend”roleofthemiddle-sizedSpanishcompany(i.e.Gullón),togetherwitha“protective”archetypebyconsumerstotheSpanishproductiveenvironment,thenitsreputationcouldevenincreaseasitssocialcommitmentandlegitimacywouldimprove.Nowmorethanever,withthegrowingimportanceofevidence-basedhardfactsandofdoing,de-spitetheapparentparadox,thepowerofcompaniesliesinthestrategicmanagementofin-formationandcommunication.Nowadays,powercanbefoundintruthfullytellingpracticesandtrueandaccuratesocialfacts.

Duringthelastmonths,thethoroughresearchwehaveundertakenhasenabledustofindmanyhintsandevidenceofmanyotherexamplesofblackbrands,whichraisemanyotherquestions:ShouldtheusualbuyeroftheAmericanHeinzketchupbrandbeawareofthefactthatithasprobablybeenmanufacturedbytheSpanishcompanyYbarra?ShouldthebuyerofMimosín(abrandofthemultinationalcorporationUnilever)beawareofthefactthatthesoftenerhasmaybebeenmanufacturedbytheSevilliancompanyPersán,whichisthesamecompanythatalsoproducestheBosqueVerdebrandedsoftenersandwashingproductsfortheMercadonasupermarketchain,aswellasforAldiandAmazon,amongotherlargedistributioncompanies?2

Manyfoodproducts,aswellasmanyotherproductsmarketedbyleadingbrandsthatwepurchaseonadailybasis,aresourcedtomaquilasoperatinganonymouslyinthedark.Theaverageconsumerdoesnotusuallyknowaboutthisphenomenon,since“whathappensinagivenindustrialsector,staysinthatindustrialsector”duetoconfidentialityandnon-dis-closureagreementsand“pactsofsilence”.Beforereachingsupermarkets,productsundergoagreatdealofmoving,sincetheyaremanufacturedona“turnkey”basisbytrueproduc-tionpowerhouses(Olivares,2012),i.e.largecompaniesspecialisinginmanufacturingspe-cificproductsforthirdpartiesandleadingintermsofvolumesandproductioncosts.Intheconsumerproductsector,beforereachingB2C(businesstoconsumer),rawmaterialsandproductscomefromfarawayplacesandaremovedsecretlybyanonymouscompanieslocat-edinindustrialestatesthatareabsolutelyunknowntoendconsumers.Everythinghappens

2.Montoto,L.:“AntonioSomé:‘EsfactiblequePersánpuedasuperarlos500millonesdeeurosdefactura-ción’”,ABC,Sevilleedition,4August2013.Availableathttp://bit.ly/2OsltA9.

26

blackbrands

stealthily,asiftherewasawarenessthatthisistheAchillesheelofglobalbrandsandtheevergrowingandcontroversialcapitalgainsoftheirowners.

Blackbrandsdonotexistexclusivelyinthefoodsector.Inallotherindustrialsectorsconcealedandundercoverproductionoutsourcingdoesexist;manyofthecompanyexecu-tivesinterviewedintheframeworkofthisworkmentionedthatthispracticeiscommonplaceandwidespread,evenamongcompetingcompanies.

Forexample,intheautomotivesector,oneofthemostglaringcasesistheMercedes-BenzCitanvan,whosemanufacturehasbeencompletelyoutsourcedtoRenault.Shouldapro-spectivebuyer,whoisconsideringbuyingaMercedes-BenzCitanvan,knowthatthevanisidenticaltotheRenaultKangooandthatthediamondbrandmanufacturesitentirelyinitspremisesinLimoges(France)?Wefirmlybelievethattheanswershouldbe“yes”andwealsobelievethattheallocationofthereputationalcapitalbetweenMercedes-BenzandRenaultwouldbesomewhatdifferentiftheend-consumerwasawareofsucha“small”detail.RenaultwouldcertainlyincreaseitsreputationalvalueifitwaspresentedasaproductionpartnerofaGermanpremiumbrand,whichisthecaseofMercedes-Benz.Apriori,iftheGermancom-panydoesnotmanageitscommunicationonsuchpartnershipandproductionoutsourcingappropriately,suchmismanagementmayhaveanimpactonitsleadershipandinnovationimage,whichmayundermineitsreputationand