Hearts & Minds: Cashing in on a rival’s woes – the do’s and don’ts

The offer by Reels of $5,000 to lure creators away from TikTok is a fine example of kicking your rival when they’re down. TikTok owner ByteDance is in trouble with the US authorities, its future in the country uncertain. Along comes Reels, part of Meta, with a tidy sum to move across and use their talents to post material on the Meta-owned Facebook and Instagram.

Putting aside the ins and outs of their battle, is it smart PR? The old saying is that all is fair in love and war. We’re reminded of it nightly on our TV screens as the current contestants on Traitors do not hesitate to pile in when someone is targeted, while strengthening their own positions. Watching it can make us wince. One minute they’re swearing allegiance to each other, the next they’re murdering them. That’s how we think when witnessing similar in real life. We accept it, because that’s business and they’re not friends, same as on Traitors, but equally it induces an uncomfortable feeling. Take that negative sensation and blow it up, and you have potential reputational harm.

Successful brands are built on more than just cash. They induce affection among their customers. Those people still retain a residual bond, when, nothing to do with the quality of the product, the firm is in crisis. It’s that tie which is being broken. The exploiter is jumping in and seeking disloyalty. It’s asking them to transfer their loyalty easily, possibly for money and loyalty is not something that can be instantly acquired.

When Woolworths collapsed in the UK, the media was quick to criticise. The high street chain pursued a model that was flawed, selling pick ‘n’ mix sweets alongside lawn seed and stationery. It didn’t stack up, it seemed random, no business in its right mind would provide such a range. Journalists, industry bosses and retail experts said so. They were taken aback then, when consumers said how much they adored ‘Woolies’. There weren’t enough of them to make it viable, they weren’t prepared to pay the sort of prices that Woolworths would have to charge to keep going, but nevertheless, they were sufficient in number to make a considerable noise. The critics under-estimated their loyalty.

Of course, a rival wants their custom. The message, though, should be subtle, that you’re supplying an alternative. Being direct and brazen does not sit comfortably, it’s cheap and it will rebound.

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.