Before multinational corporations began to grow in number, the factory was considered the heart of the economy. Why? Simply because hammers and lathes created purchasing power. In the mid-1980s, the whole of management theory took a sharp turn: promising corporations should prioritize producing brands rather than products.

1988 became historic for “corporate soul.” That year, Philip Morris purchased Kraft for $12.6 billion. Taking into consideration that the real company’s asset value was six times lower, that deal made clear to Wall Street how powerful a brand name is. The next insight was that advertising forms long-term value, not just short-term sales.

Another notable example occurred in 1993, when, during “Marlboro Friday,” Phillip Morris lowered prices to compete with much cheaper brands. Despite the fact that many predicted the end of branding, this decision created a unique opportunity to demonstrate a gap between companies with a soul and product-based ones.

Since the mid-1980s, so-called “hollow corporations” such as Nike, Tommy Hilfiger, and Microsoft have paid much more attention to brand essence. Moreover, they considered hiring thousands of workers and operating factories as a clunky liability. As a result, more and more companies started to adopt “weightlessness.” In simple words, it means shedding employees and physical assets, focusing on the power of branding.

Nowadays, “lifestyle philosophers” such as Apple, Starbucks, and Nike implement corporate philosophies into every step of the production process. This is meant to give customers a special experience and create a unique connection between their brand and people’s everyday lives.