What Is a Brand?

The Origin and Meaning of “Brand”

The word “brand” originates from the Old Norse word brandr, meaning “to burn.” In the past, farmers would use a hot iron to mark their livestock, distinguishing their own cattle from others. Over time, the term came to symbolise the act of differentiation—a core function of branding.

In Europe, branding was also used to indicate provenance. For example, Meissen porcelain and Scotch whisky are classic cases where markings confirmed the place of origin. These marks not only conveyed exclusivity but also served as a form of authentication, helping to prevent counterfeiting.
In today’s world, the concept has evolved further. Some even describe branding as “leaving a burn mark on the consumer’s mind,” highlighting its deep psychological impact.

What Brands Come to Mind?

What comes to mind when you think of a brand?

Gucci, Cartier, Sony, IBM, Toyota, Honda… Most of us can name at least one or two brands we like—or even feel attached to.
When faced with a purchase decision—especially between products of similar quality and price—we often choose the one with the stronger brand image. In fact, many of us are willing to pay a premium for a product simply because we trust or admire the brand behind it.

We evaluate companies and products based on their name, logo, and brand signals. This applies not only to consumer goods, but to decisions such as choosing a school or an employer.
Job seekers often select companies without reviewing detailed business activities or financial reports. Likewise, shareholders judge a company’s value and potential largely through the lens of brand perception when making investment decisions.

Why Branding Matters

At the flagship Louis Vuitton store located in Matsuya Department Store in Ginza, Tokyo, over 15,000 brand enthusiasts visited during the first three days of the New Year holiday. Remarkably, daily sales exceeded 50 million yen—surpassing the total sales of all other departments combined.

In the midst of an economic downturn, this is a truly striking phenomenon. On the opposite end of the pricing spectrum, UNIQLO also announced strong results in its February interim financial report: an operating profit of 61.7 billion yen—approximately 2.6 times the annual profit of Japan’s leading supermarket, Jusco.

Strong brands continue to perform well, regardless of economic conditions.

It would not be an exaggeration to say that branding aims to create a form of quasi-monopolistic market.
When a company successfully builds a compelling brand that cannot be imitated by others, it creates a seller’s market. In such a market, pricing flexibility increases and substantial margins over production costs become possible.
Moreover, a strong brand encourages repeat purchases and cultivates loyal customers.

Brand believers will choose the same brand again and again.

This allows companies to operate with greater stability and sustainability—shifting from reactive, short-term responses to long-term, strategic business planning. Hence the saying:
“A brand is an asset.”
“Branding is the process of building a system that sustains continuous sales.”

Branding Is Bonding

In recent years, a new expression has emerged in the West:
“Branding is Bonding.”
This reflects the growing recognition that a brand is a bond—a relationship between a company and its customers.

A brand is the bond that connects the value a company delivers with the value a customer expects.
This bond can also be viewed as a promise shared between the two parties.
When customers become believers in that promise, the brand gains extraordinary strength—powerful enough to drive sustained growth and transformation.
This is precisely why branding is attracting global attention today.
And as an aside—there’s an interesting observation in Japanese:
the character for “profit” (儲) combines the symbols for “trust” (信) and “person” (者)—in other words, a believer.
Perhaps, there’s more than a coincidence in that connection.