In today’s business landscape, it’s no longer sufficient for companies to simply market themselves as eco-friendly or socially responsible without substantiating their claims. Consumers are becoming increasingly discerning, demanding transparency, authenticity, and accountability from the brands they support. The post-pandemic world has accelerated this shift, with individuals re-evaluating their values and seeking out businesses that align with their principles.
Consumer Shifts in the Post-pandemic World
The COVID-19 pandemic has had a profound impact on consumer attitudes and behaviours, prompting a reassessment of priorities and values. Sustainable and responsible consumption has taken centre stage, with consumers showing a preference for brands that prioritise sustainability, local sourcing, and transparency. The EY Future Consumer Index highlights the emergence of the “Planet first” consumer segment, characterised by heightened awareness of consumption impacts, a preference for locally sourced products, and an expectation of transparency.
Cross-generational engagement is also playing a significant role in shaping consumer expectations. Contrary to popular perception, even baby boomers are leading the charge towards a more sustainable lifestyle. The OCBC Climate Index 2022 study found that individuals between the ages of 58 and 65 scored highest in terms of awareness and adoption of greener lifestyles. This generation is actively putting sustainable behaviours into action and advocating for them. Brands must recognise the diversity of their target audience and develop strategies to engage different consumer segments authentically.
Embracing Honest Marketing: Best Practices for Brands
- Authentic Brand Storytelling: Craft narratives that resonate with consumers’ values and emotions. Share stories of real people and initiatives that make a positive impact on the environment and society. By weaving authenticity into brand storytelling, companies can foster a stronger emotional connection with their target audience.
- Transparency in Supply Chains: Provide visibility into sourcing, manufacturing, and labour practices. Ensure ethical and sustainable sourcing standards, communicating these efforts transparently. Transparent supply chains build consumer trust and confidence in a brand’s commitment to sustainability.
- Measuring and Communicating Impact: Set clear sustainability goals and track progress towards achieving them. Share impact reports that highlight achievements and challenges. Engage consumers in the sustainability journey, making them active participants and advocates for positive change.
Successful Examples: Purposeful Brands
Patagonia stands as a shining example of purposeful branding, driven by its unwavering commitment to environmental activism and sustainability. As a certified B Corp, it has embraced a holistic approach to business, donating a significant portion of its profits to environmental causes. Patagonia’s transparency in sharing environmental impacts sets it apart as an authentic and accountable brand.
Beyond their delectable ice cream flavours, Ben & Jerry’s has carved a distinct niche with its dedication to social and environmental causes. Through its vocal advocacy on issues like climate change, racial justice, and LGBTQ+ rights, it has demonstrated a deep commitment to making a positive impact. Sourcing fair trade ingredients and actively supporting community initiatives through its foundation further exemplify its purpose-driven approach.
With a rich history of ethical business practices, The Body Shop has become synonymous with cruelty-free cosmetics and skincare products. Its relentless campaigns against animal testing have positioned it as a pioneer in the beauty industry. The Body Shop’s emphasis on fair trade and sustainable sourcing, as evident through its Community Fair Trade program, further solidifies its commitment to ethical supply chains and community empowerment.
Beyond the Façade: Understanding the Importance of Ethical Supply Chains
While some brands have successfully embraced purposeful practices, others have faced criticism and fallen short of meeting ethical standards, leading to the erosion of consumer trust.
Among such brands, SHEIN, an online fast-fashion retailer known for its affordability, has faced scrutiny for its questionable ethical and sustainable practices. The brand has been accused of prioritising fast production and low prices over environmental responsibility. Concerns have been raised regarding its supply chain, including issues related to waste, pollution, and labour conditions. Despite its popularity, SHEIN has encountered significant backlash, highlighting the necessity for genuine commitment, transparency, and accountability to meet the expectations of conscious consumers.
“SHEIN is committed to transparency and this trip reflects one way in which we are listening to feedback, providing an opportunity to show a group of influencers how SHEIN works through a visit to our innovation centre and enabling them to share their own insights with their followers,” SHEIN said in an emailed statement. “Their social media videos and commentary are authentic, and we respect and stand by each influencer’s perspective and voice on their experience.”
In an attempt to showcase their commitment to fair labour practices, SHEIN organised a trip to their factory in China for six American fashion influencers. However, the public perceived this trip as a PR stunt and a display of hypocrisy. Influencers’ positive comments about the conditions in the factory were met with scepticism, questioning the authenticity of SHEIN’s claims.
The 2015 Volkswagen diesel scandal, commonly known as Dieselgate, remains a glaring example of a brand’s ethical failure. Volkswagen was exposed for cheating emissions tests by employing software that manipulated diesel engines to deceive regulatory standards. This deceptive practice affected millions of cars globally, leading to a profound loss of consumer trust.
Former Volkswagen America CEO, Michael Horn, candidly admitted, “We’ve totally screwed up,” while the former CEO of the group, Martin Winterkorn, acknowledged that the company had broken the trust of their customers and the public. The scandal served as a sobering reminder of the repercussions faced by brands that prioritise short-term gains over ethical integrity.
Looking Ahead: The Future of Purposeful Branding
As the landscape of consumer expectations continues to evolve, purposeful branding is set to become even more integral to the success of businesses. To stay ahead of the curve and meet the demands of conscious consumers, brands must constantly adapt and innovate. Here are some key considerations for the future of purposeful branding:
- Technology and innovation: Embrace technology and innovation to drive sustainable practices and enhance transparency. Explore opportunities in areas such as supply chain traceability, renewable energy solutions, and eco-friendly packaging.
- Collaboration and partnerships: Foster collaboration with industry peers, NGOs, and government organisations to address complex sustainability challenges. By pooling resources and expertise, brands can accelerate progress towards shared goals and amplify their impact.
- Employee engagement: Engage employees as brand ambassadors and champions of sustainability. Foster a culture of purpose within the organisation, providing training, resources, and opportunities for employees to contribute to sustainability initiatives.
- Personalisation and customisation: Tailor products and experiences to meet the unique preferences and values of individual consumers. Utilise data-driven insights to deliver personalised recommendations and empower consumers to make conscious choices.
- Amplifying impact through marketing: Leverage marketing channels to educate and inspire consumers about sustainability. Use storytelling and compelling visuals to convey the positive impact of sustainable practices and engage consumers in the brand’s sustainability journey.
- Global responsibility: Expand sustainability efforts beyond local markets and take a global perspective. Consider the environmental and social impact of operations throughout the entire value chain, including suppliers and international markets.
By embracing these forward-thinking strategies, brands can position themselves as leaders in purposeful branding, driving positive change while meeting the evolving expectations of conscious consumers. As the world continues to prioritise sustainability and ethical practices, purposeful brands will be well-positioned to thrive in the future business landscape.
References:
https://www.ey.com/en_sg/future-consumer-index
https://www.bbc.com/news/business-34324772
https://www.today.com/news/shein-influencer-trip-backlash-rcna91244
