Consumers and Sustainability: Good Brand Practices
Consumers are committed to buying services and products that are from sustainable sources despite the global economic meltdown. As a direct result of the economic climate this will have an immediate impact on the available spend in peoples pockets, making their market behavior buy in far more unpredictable.
Consumer spending and brands are changing as the economic situation worsens. Now the pattern has shifted from our previous free-market mindset to cautious spending and buying because of the uncertainty of the financial future specifically in the UK.
Responding to global financial difficulties the common approach for many companies is to “cut costs” so that it enables them to ride out the recession until there is some stability in the markets. Companies, SME’s and individuals are becoming more creative on their buying and spending patterns, peoples lifestyles are evolving and as such will out run the recession. There are far greater consumer awareness examples like CSR, climate change, energy, fair trade and so on. The list keeps growing. The consumer has greater insight and awareness about the business ethics behind a brand. Good brands are aware just how profitable it is when they encourage and promote ethical practices.
Jenny Dawkins, Head of CSR research at Ipsos MORI Reputation Centre says “our Research shows that as of September 2008 three-quarters of the British public say it is more important for a company to be more responsible in tough economic times…. There is now an onus on companies to continue to behave responsibly in line with consumer expectations, while also delivering at affordable prices”.
In one of my earlier postings on the Cutting Edge Blog I talked about companies having a socially responsible attitude, CSR program in place is good business, now companies and SME’s must now focus on rebuilding trust amongst their target markets, consumers. It needs to be incorporated and instilled into the Brand, the business plan, products and services.
Companies and SME’s that have a brand identity has to find new exciting and creative ways in keeping their clients loyal and engaged, and a no brainer is to incorporate the social and environmental responsibility closer to the every day running of the company or SME. When CSR becomes the core of the business it can gain brand leadership.
Research from the Carbon Trust Standard (CTS), (March 2009) quotes that 62% of consumers are influenced by environmental considerations in their purchasing decisions. The Co-operative Bank agrees that the growth in ethical consumerism would not slow down in the economic downturn.
Most of the bigger brands that come to mind for example M&S, they have taken their branding to whole new levels by informing the consumer on products that are Fair Trade, Sustainable produce, Recycling bags and charging people every time they buy a plastic bag. They are constantly evolving their brand, educating the consumer on climate change and the environment. As a result profits are up and people prefer to spend their money on ethical products and a company that is pro active in improving standards.
There has been a rise in brands that have or are introducing environmental, green and social credentials to attract the “new” client that is eco friendly and ethical.
Hope your brand becomes Socially Responsible!