Consumer brands are at an inflection point. More than 80% of consumers are either concerned or very concerned about the future of the environment.1
Not only are they concerned, but they are looking to businesses to make a positive difference. In fact, 49% of consumers believe that the responsibility for sustainability falls on businesses more than governments (17%) or even individual consumers (34%).1 Today, about 40% of US online consumers want more environmentally sustainable products.2 Additional consumer surveys have found 70% of consumers are willing to pay more for sustainable products.3
HOW BRANDS & RETAILERS ARE RESPONDING
Generally, brands are taking important steps to ensure sustainable operations, and Compass Marketing believes such efforts are essential in protecting brand health. Besides, 62% of executives believe that having a sustainability strategy offers a competitive advantage, allowing brands to create long-term value and garner customer trust.4
Large technology companies like Meta, Google, and Apple have established timelines for carbon neutrality, setting the bar for other brands. Amazon now allows third-party sellers to list unsold and returned goods as “used” instead of destroying them. Coca-Cola and Pepsi have increased their focus on water stewardship to ensure optimal replenishment.
Sam’s Club, the warehouse club business unit of Walmart, has also followed suit by revising its in-house Member’s Mark to focus more on sustainability.5 Included among the initiatives are a push to ensure all coffee, tea, and chocolate products are Fair Trade Certified, ensuring all animal proteins meet Sam’s Club’s guidelines, and ensuring all packaging is recyclable, reusable, or compostable.5
THE BENEFITS OF SUSTAINABLE BUSINESS PRACTICES
We believe brands and retailers stand to gain from their investments in sustainable business practices. There is no one solution, but even the small changes brands make can go a long way towards gaining a competitive advantage. Whether by adopting operations and processes that reduce environmental impacts, or by offering products that promote positive social outcomes, brands can make decisions that are not only good for the planet and for people, but good for their bottom line too.
More importantly, sustainable initiatives increase customer trust and loyalty. As eCommerce adoption has increased, fewer purchases require face-to-face interactions. Now, customers are forced to rely on the information provided by brands and retailers, and their own personal research, instead of the recommendations of store employees or the curated assortments provided by brick-and-mortar retailers. So, sustainability offers an opportunity to build customer trust while providing long-term value.
Implementing sustainable practices and aligning them with brand identity can even help drive sales. 78% of Americans are more likely to purchase products labeled as environmentally friendly.6 The challenge many consumers face is knowing what products are sustainable.6. Brands can help customers find sustainable products by more clearly labeling their products, or otherwise bringing attention to their initiatives.
THE ROAD TO SUSTAINABILITY
As consumers increasingly factor sustainability into their purchasing decisions, brands need to pay attention to their practices, processes, products, and materials. Bear in mind that this wave affects all sectors—customers want brands that inspire and are sensitive to their concerns.
SOURCES
- Sustainability Survey Blog – Sensormatic
- Global Consumers Drive The Market Toward Sustainable Retail (forrester.com)
- Customers are willing to pay more for sustainability – Insider Intelligence Trends, Forecasts & Statistics (emarketer.com)
- Why all businesses must embrace sustainability and lead the way (imd.org)
- Sam’s Club outlines new sustainability efforts for its Member’s Mark line | Grocery Dive
- GreenPrint Survey Finds Consumers Want to Buy Eco-Friendly Products, but Don’t Know How to Identify Them | Business Wire
