Mindful consumers actively seek out products that align with their values, provided that the prices remain within reasonable boundaries
World Environment Day: Honest communication connects to a larger community and hence adds value to the brand’s life beyond just a product
Brands are embracing sustainable practices and are conforming to the ideals of conscientious consumers who place sustainability and ethics at the forefront of their purchasing considerations. 54% of Gen Z are willing to spend 10% or more on sustainable products and 63% would do more research on companies claiming sustainability before purchasing – revealed by a South East Asian consumer insights survey by Milieu Insight.
Sarabjeet Saluja, Founder & CEO, Saundh, says, “This is an age of open source. In today’s age and time, the brand’s merit lies in its process’s transparency. All the key consumer studies speak that today’s generation holds values like honesty, rawness, and authenticity much higher than perfection. By adopting an open communication model, the brand is able to speak about its process, their practices and is able to make a better connection with its community. Building a brand today without thinking of conscious and planet-friendly activities is a non-negotiable pillar. I believe it’s okay, that if you are not a 100% conscious brand. But it is more important than ever to speak about even the little, important changes that you have taken as a brand.”
Honest communication connects to a larger community and hence adds value to the brand’s life beyond just a product. This is why brands that make a conscious effort to adopt sustainable practices definitely have a higher edge with their customers. “It is well established that there is a set of customers who are willing to pay a premium if the sustainability ethos of the brand matches that of the customer,” opines Saluja.
Mindful consumers actively seek out products that align with their values, provided that the prices remain within reasonable boundaries. By addressing pricing concerns and finding innovative solutions, brands can effectively tap into the market potential that exists for sustainable products.
Iffat H. Jivan, COO, Ed-a-Mamma, says, “When brands successfully navigate the pricing challenge, it opens up substantial market opportunities for sustainable brands to thrive.”
Jivan explains the several factors that contribute to the competitive advantage of sustainable brands:
Growing consumer demand
There has been a significant increase in consumer awareness and concern about environmental issues, such as climate change, pollution, and resource depletion. As a result, conscious consumers actively seek out brands that demonstrate a commitment to sustainability and ethical practices.Differentiation and brand positioning
By adopting sustainable practices, brands can differentiate themselves from competitors and carve out a unique market position. This differentiation allows them to attract a specific segment of consumers who prioritize sustainability, setting themselves apart in a crowded marketplace.Enhanced brand reputation and loyalty
Brands that prioritize sustainability build a positive reputation as responsible and ethical entities. This reputation fosters trust and loyalty among consumers, who develop a strong emotional connection to the brand. Conscious consumers often become brand advocates, recommending the products to others and further increasing the brand’s reach.Cost savings and efficiency gains
While sustainability initiatives may require initial investments, they can also lead to long-term cost savings. Practices such as energy efficiency, waste reduction, and sustainable sourcing can lower operational costs and improve overall efficiency. These savings can contribute to the brand’s profitability and financial performance.Regulatory compliance and risk mitigation
Many governments and regulatory bodies are implementing stricter environmental regulations and sustainability standards. By proactively adopting sustainable practices, brands can ensure compliance with current and future regulations, reducing the risk of penalties or negative publicity associated with non-compliance.Access to new markets and partnerships
Sustainability is not just a trend but a fundamental shift in consumer behavior. Brands that embrace sustainability open themselves up to new market opportunities and potential partnerships. For example, retailers and e-commerce platforms often prioritize sustainable products, giving sustainable brands wider distribution channels and greater exposure to potential customers.
As the demand for sustainability continues to rise, brands that wholeheartedly embrace sustainable practices are well-positioned for long-term success in a rapidly evolving marketplace.
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