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CEO Doyoung Kim
Founder of Asia Design Prize

 

 

 

Many people believe that crises come from the outside. Economic downturns, intensifying competition, declining customer demand, or sudden market changes are often cited as the causes. In reality, however, most crises do not emerge out of nowhere. They are usually moments when problems that already existed become impossible to ignore. Inefficiencies that were previously hidden, contradictions that went unnoticed, wavering standards, and overly complex structures are suddenly exposed all at once. In this sense, a crisis is not an event that destroys a brand. It is a mirror that reveals what the brand truly is.

 

 

 

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< Image source: Party Expert >

 

 

Few examples illustrate this principle better than LEGO. Today, LEGO is one of the most beloved brands in the world, but in the early 2000s it was a company on the verge of collapse. At the time, LEGO was aggressively expanding beyond its roots as a toy manufacturer. It had entered theme parks, apparel, video games, media ventures, and numerous licensing projects. From the outside, the company appeared to be growing. Internally, however, it was becoming increasingly complex. The number of products expanded dramatically, operating costs became difficult to control, and the brand’s core identity grew increasingly unclear. LEGO was growing, but it was becoming less certain about what it actually did best.

 

Eventually, the crisis arrived. In 2003 and 2004, LEGO recorded the largest losses in its history. Industry observers even speculated that the company might disappear altogether. Yet the real problem was not the market environment. What the crisis exposed was an organizational structure that had become excessively complicated. LEGO was doing too many things and spreading its energy across too many directions. At that moment, LEGO made a crucial decision. Rather than doing more, it chose to do less. The company discontinued unprofitable businesses, simplified its bloated product portfolio, and returned to its core foundation: the brick. In the midst of the crisis, LEGO focused on a fundamental question:

 

“What kind of company are we?”

 

The answer turned out to be surprisingly simple. LEGO was not a company that made toys. It was a brand that nurtured creativity. From that point forward, LEGO chose focus over expansion. What ultimately revived the company was neither a new business venture nor a breakthrough technology. It was the decision to recommit itself to what it did best.

 

 

 

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< Image source: YouTube >

 

 

A similar example can be found in Nintendo. Once regarded as the undisputed leader of the gaming industry, Nintendo experienced a major setback with the Wii U following the success of the Wii. At the time, many critics argued that the company had failed to respond effectively to technological competition and shifting market conditions. What is interesting, however, is that Nintendo did not look to its competitors for answers. Instead, it asked itself a simple question:

 

“What do we do best?”

 

The answer was not high-performance hardware or technological superiority. It was the ability to create unique play experiences that anyone could enjoy. The Nintendo Switch was born from this philosophy. By removing the boundary between home consoles and handheld gaming devices, Nintendo focused on enabling people to play wherever and whenever they wanted. Ultimately, what reignited Nintendo’s growth was not the latest technology, but a rediscovery of the value that the brand was uniquely positioned to deliver.

 

The same principle applies to micro brands. As a brand grows and attracts more customers, it becomes tempting to add new services, expand to new platforms, and pursue new business opportunities. Yet there often comes a point when the brand itself struggles to explain why it exists. The problem is not expansion itself. The problem is losing direction. That is why the first thing a brand should do during a crisis is not rush to solve problems. It should examine its structure. What are we doing too much of? What has drifted away from our core purpose? Which processes have become unnecessarily complicated? A crisis forces brands to confront these questions.

 

Every new technology creates opportunities to do more. Brands can produce more content, appear on more channels, and offer more services than ever before. Yet sustainable growth depends less on what is added and more on what is protected. The more options a brand has, the clearer its center must become. Ultimately, a crisis is not the enemy of a brand. It is a signal that reveals what should be discarded and what should remain. Brands that successfully navigate crises often emerge stronger than before because the process teaches them what they should and should not be doing. Super micro brands possess a unique advantage in this regard.

 

Their small size allows them to adapt more quickly. They can restructure rapidly, change direction immediately, and hear customers directly. The goal is not to avoid crises, but to maintain clarity of purpose when crises occur. A brand becomes more visible in moments of difficulty than in moments of success. It is through deciding what to let go of and what to preserve that a brand’s true essence is revealed. Crises may shake brands, but they also define them. In the end, what remains after the crisis has passed is often the brand’s greatest competitive advantage.

Wanna get more insights?
asia design trend report 26-27