Kodak shows how to compete with startups if you’re a heritage brand

The digitalisation of our world has given with one hand and taken away with the other. It has created opportunities for new companies, and made household names such as Amstrad computers and Woolworths entirely redundant.

Technological advancements have facilitated the emergence of startups that thrive on disrupting traditional business models.

However, the decline of established brands need not be inevitable. As customers’ expectations and habits change, companies that embrace new technology and new behaviours, shift focus, and figure out what makes them appealing can find new ways to prosper.

But what does this actually look like in practice?

One approach is to look for inspiration and embrace new ways of doing things. Kraft Heinz and Unilever are among the legacy businesses that have launched incubation programmes for startups.

In doing so, they have created mutually beneficial relationships where both sides can learn from each other.

Here at Kodak, meanwhile, we actually incubated a startup at the very centre of our business. Indeed, the resulting company, Kodakit, was specifically developed to respond to tech startups’ need for on-demand photography. It is a hallmark for Kodak’s innovations, and is leading the way in making it easier than ever for businesses and photographers to connect.

Second, businesses need to take a close look at what they already have and understand the value of their brand’s equity among consumers.

If the brand has endured for years, there is usually a reason for this. The reputation it has built up over that time should be used to a company’s advantage.

Lego’s transformation from a struggling business in the early 2000s into the world’s favourite toy is a classic example of a heritage brand using what made it popular in the first place and revamping itself for a modern audience.

It expanded its appeal through franchises and licensed series, while never straying too far from the classic Lego “feel” and always drawing from its original product lines. The turnaround is perhaps best exemplified by the incredible box office success of The Lego Movie and its sequel, demonstrating the shift from being just a toy company to a cult brand.

But while emotional capital is a vital tool for heritage brands, the trick is bringing these positive associations into the here and now.

Kodak has done this by pivoting to new markets such as fashion, licensing its brand via collaborations with millennial outlets like Forever21, resulting in sell-out clothing lines that draw on Kodak’s nostalgic appeal.

The brand’s vintage quality has been vital in order to tap into the rise of “modern nostalgia”, demonstrated by the popularity of TV hits like Stranger Things, as well as vinyl sales and the huge growth in the vintage clothing market.

In a world that is dominated by “newness” and widespread transience, it has become clear that young people value quality and products that have endured the test of time.

None of this has been easy, and Kodak has faced some difficult times. However, recognising the respect that people have for the brand and having a genuine commitment to innovation has transformed our fortunes.

Making the brand relevant for a new generation – and turning them into unexpected brand advocates – is ensuring that Kodak will be around for years of parties, holidays, and Christmases to come.