New Year, New Brands!
2024 was a riveting year for all things brand strategy and design. As the new year gets rolling, we are excited about the future of branding, especially with a keen eye on the Gulf and the greater MENA region. While some global branding trends will undoubtedly seep into the regional zeitgeist, there are specific nuances we have been observing both over the past year and moving forward into 2025.
Here are some trends that we believe will be acutely felt in the region this year.
1. The Real Impact of AI on Brands in the Region
The past 18 months have marked an evolution in artificial intelligence (AI), with 2024 being the year businesses truly realized its transformative impact. The “third industrial revolution” has become the “AI revolution,” and we’re all racing to adapt or risk being left behind.
In our region, personalization and localization will take center stage in 2025. With most language models trained on certain databases, organizations must proactively train and leverage AI to reflect linguistic, cultural, and societal nuances. Doing so will allow organizations to deliver highly tailored and culturally relevant messaging that genuinely resonates with their audiences.
This was evident in Coca-Cola Arabia’s AI-powered campaign during the 2022 FIFA World Cup in Qatar. Using Google’s Ads Creative Studio, Coca-Cola tailored over 30 personalized video ads in real-time based on audience interests, such as gaming, soccer, and fashion. This strategy exemplified AI-driven personalization and successfully engaged MENA’s diverse audiences.
Strategic Recommendation: Rethink your brand strategy, even if you recently rebranded. The shift to AI-powered personalization is essential for creating authentic connections in a competitive market.
2. Human-First, AI-Driven Brand Experiences
MENA’s rich cultural fabric, with its varying dialects, social norms, and communication styles, creates a unique challenge for brands embracing AI. In 2024, we saw many brands experiment with AI for messaging, ads, and customer service (think chatbots). However, the audience response was mixed, ranging from curiosity to apprehension.
For example, Coca-Cola’s AI-generated Christmas ad was intended as a nostalgic homage to their classic 1995 “Holidays Are Coming” campaign. However, it was criticized for a lack of human authenticity and technical flaws, such as missing key cultural symbols like Santa Claus. This backlash highlights the importance of balancing AI integration with human creativity to maintain authenticity and audience trust.
Strategic Recommendation: The key is strategic integration. Use AI to enhance efficiency and engagement, but ensure it supports (not replaces) the human connection that defines your brand purpose.
3. Purpose Beyond the Buzzwords
As the global pushback against greenwashing gains momentum, authenticity is no longer optional, it’s a necessity. Brands that embrace a meaningful purpose will stand out in 2025, especially in the region, where culture and heritage remain deeply rooted in consumer behavior.
For brands with sustainability as their purpose, the opportunity lies in harmonizing global sustainability standards with local cultural imperatives. We’re seeing this play out in luxury brands incorporating sustainable materials while retaining cultural aesthetics, real estate developers blending traditional architecture with green technologies, and financial institutions offering Shariah-compliant green investment products.
Strategic Recommendation: Aligning brand values with regional sustainability goals, such as those gaining traction in Saudi Arabia, will position your brand as progressive and authentic. From haute couture infused with Arabic calligraphy to limited-edition collaborations with traditional Emirati or Moroccan artistry, consumers demand products that honor their heritage while offering global appeal.
4. Digital Transformation Becomes a Priority
Technological integration has become non-negotiable for brands aiming to thrive in the region. AI, augmented reality (AR), and virtual reality (VR) are redefining customer experiences to become immersive and efficient. However, a growing digital divide across the region cannot be ignored.
While the Gulf region is leading the digital revolution, other MENA countries are still navigating the early stages of digital literacy and transformation. This disparity underscores the importance of tailoring digital strategies to different markets within the region.
Aramex, a leading logistics company in the region, exemplifies this by curating extensive datasets to optimize delivery routes and enhance customer service. Their strategic AI implementation showcases how technology can drive operational efficiency while aligning with regional nuances (ITP.net, 2024).
Strategic Recommendation: Brands that fail to adopt cutting-edge digital transformation strategies whether through VR-enhanced retail or AI-driven personalization, risk losing relevance in an increasingly tech-savvy landscape.
5. Phygital Brand Experiences: The New Normal
The fusion of physical and digital experiences “phygital” is becoming particularly relevant in the region, where traditional values of hospitality and personal connection coexist with the conveniences of digital innovation.
Retailers are leading the way, leveraging AR to create immersive shopping experiences. Some companies are implementing AR features that allow customers to visualize products in real-time using their smartphones. From virtual try-ons to real-time inventory previews, this seamless integration of technology and in-store interaction is not just driving sales but also fostering customer loyalty.
Strategic Recommendation: Phygital isn’t limited to retail. The real estate sector is embracing this trend by offering virtual property tours enhanced with cultural touchpoints, making the property-buying experience more engaging and intuitive.
6. The Rise of Brand Culture Programs
In 2025, internal brand culture will be as important as external brand perception. Brands are recognizing that meaningful consumer experiences begin with authentic employee engagement. At Brand Lounge, we’ve seen a 40% increase in demand for programs that align internal culture with brand values.
AI will play a crucial role in employer branding enabling tailored training and communication programs that resonate with employees and strengthen their connection to the brand.
Strategic Recommendation: Investing in brand culture and ensuring your employer brand is holistic boosts employee satisfaction and ensures consistent, authentic brand representation across every consumer touchpoint.
7. The Bigger Picture: Agility Meets Cultural Relevance
This year, the regional branding landscape will offer a compelling fusion of modernity and tradition. To succeed, brands must adopt an agile approach listening intently to evolving consumer needs while honoring the rich cultural fabric of the region. From hyper-local AI-driven personalization to the seamless integration of tradition and innovation, the trends outlined above highlight the region’s complexity and richness.
The brands that will thrive are those that embrace change, drive innovation with agility, prioritize authenticity, and craft experiences that deeply resonate with their audiences. This, in our view, sets the tone for the brand landscape in 2025.
Strategic Implications for Brand Leaders
As you gear up to roll out the 2025 plans, here are four key considerations for navigating the region’s strategic landscape:
- Cultural Intelligence: Invest in understanding the cultural nuances of your target markets.
- Authentic Innovation: Use technology to enhance and not overshadow your brand’s core values.
- Strategic Agility: Stay flexible and responsive to rapidly evolving consumer expectations.
- Sustainable Growth: Balance innovation with a commitment to cultural and environmental preservation.
The Path Forward
The brands that will thrive are those that understand that digital transformation and cultural authenticity are not opposing forces but complementary elements of a successful brand strategy. As the region continues to evolve, the opportunity exists for brands to create meaningful connections that resonate both locally and globally.
Are you ready to maximize your brand’s value in this exciting new landscape? Let’s develop a strategy that ensures your success in 2025 and beyond. Connect with us today to get started.
