Why we like sustainable brands

In the last years every search on Google using the words “consumer trends” would inevitably take you towards an article about the fact that more and more consumers prefer the sustainable brands. This tendency seems to be getting louder, just like an ambulance that is approaching you until it becomes evident that you have to give it priority. The question to be asked now, from my point of view, is not "what we do?", but "why do we do it?".

If you were to ask yourself the question "how to be become more sustainable in order to attract more clients?" you would be wrong from the beginning

The correct question is "Why are more and more clients attracted by sustainable brands?" Once the problem is put this way, you can then understand the consumption behavior, how the new generation of clients (the Millennials) are thinking and eventually reset your whole business strategy to make use of this new vision in numberless product companies and concepts that will definitely bring you more customers.

Let's see some numbers

Before plunging too deeply into theoretical issues, I would like us all to agree that this is a trend we can no longer ignore, and that is simply because all the important audit companies make it obvious:

Nielsen, (2018), "How and Why Sustainability is Gaining Momentum with Customers.”- While analyzing 3 types of product categories (coffee, chocolate and intimate hygiene products) - the specialists have shown that the sales for sustainable products were 5% higher than last year, in comparison with unsustainable products, from the same categories, which registered an increase of only 2%;

KPMG, (2018), ”Global Retail Trends”- globally, 66% of the consumers would pay more for a product that belongs to a socially responsible brand. Meanwhile, if we take into account only the Millennials generation, the percentage increases to 73%;

Deloitte, (2017), “Billing it on. What makes Millennial spend more?”- 49% of the consumers belonging to the Millennial Generation take into consideration aspects related to sustainability only when they purchase luxury products;

EY, (2017), ”Purpose-led brands - Ready to deliver on their value-creation promise” – The large majority of consumers feel that companies should integrate sustainability policies with their business strategy 

PwC, (2008), ”Sustainability: Are Consumers Buying It?” - the consumption of organic food increased from 22% in 2005 to 43% in 2008.

Feel free to ask questions :)

I confess that a question has been weighing heavily on my mind lately and that question is “why?”. Why consumers are more and more interested in finding out whether the brands which they regularly use are sustainable?

First of all, let's clarify what sustainable means. It most certainly does not mean "more efficient from an energetic point of view". The days when the brands were appreciated for the low consumption of electrical energy, paper or water are long gone. Today, when we speak about sustainable brands, we analyze the business from top to bottom: starting with the acquisition process of the raw materials (which also have to be from sustainable resources), continuing to the way these are transported, processed, packed (the type of the packaging: bio/non-biodegradable), and up to the human resources policies and the social cases that the companies support.

But let me come back to my question: "why?"

Those who’ve known me for a while have probably got used to my passion for Adam Smith.  If not, they should. Just joking. :)) In a previous article I have explained his vision on Capitalism (because yes, he is the first economist who theorized the world-system of Capitalism) and why morality is, indisputable, part of the process. I will not expand on this again. For more details, please find the text here. 

Before the publishing of the book that made him famous forever, "The wealth of nations" (1776), Adam Smith also wrote "The theory of moral sentiments" (1759), a lesser known book, which offers answers to my current question regarding consumers interest in sustainable brands: Sympathy, as Smith calls it - nowadays the correspondent of empathy- is in our human nature. We cannot ignore it. He illustrates it with some very simple examples:

"When we see that a hit is ready to deviate on another person's leg or arm, we naturally stunt and pull our own leg or arm and when the hit occurs we feel it to some extent and we are hurt by it the same way as the person who suffered it."

"Whatever may be the cause of the sympathy or however it could be incited, it is nothing we like more than to observe at the other persons an empathy with all the emotions from our souls and we are never more shocked than by the appearance of the reverse".

From here, the answer to my question, "Why are more and more consumers interested in the responsible brands?", is a very simple one: because they feel that the brand in question empathizes (sympathizes) with their values and interests. The latter are generally interested in nature and environmental conservation as a result of the ever - stronger signals that comes from the United Nation Organization and all of the other organizations that deal with social or environmental problems (WWF, UNICEF, Green Peace, etc). Let us also not forget that we are talking about a whole generation that grew up with the biggest organizational crisis that culminated in boycotts made to measure. Here are some examples below:

Nestle (1977-1984 - 1988) - the Company woke up in the middle of a boycott after starting a new marketing campaign for a product designed for poorly developed countries, which was intended to supply breast milk. Many organizations reacted against this product and urged the consumers to boycott the brand, accusing the company of neglecting the fact that women form these particular countries did not even have access to drinking water in order to prepare the the milk, and that if they used the water they had access to, this would have only led to a rise in infant mortality rate.

Green Peace and more European Governments (Germany, Holland, Belgium, Denmark)- (1995)- against Shell Gas because the company wanted to sink a huge oil platform in the high seas of North Sea which would have seriously affected the entire marine ecosystem in that area.

Green Peace against Exxon Mobile - (2001-2002)- the company Stop Esso- because the company refused to use renewable energy.

Thus, compared to previous generations, the Millennials have grown up with the idea that business should not be done regardless of the environment, aware of the fact that resources are exhaustible and that it is in our power to conserve them to the best of our ability. And maybe, frankly speaking, to some of us this doesn’t seem important, but if we take into consideration the empathy that Adam Smith was talking about, the Millennials have been increasingly exposed to news and images about global warming, starvation, drought, etc. And, over the years, repeated exposure to such information cannot leave one indifferent.

To sum up, I think that organizations should look at sustainability not just from the perspective of immediate profit increase, but also with the intent of finding a long-term viable option for their consumers, which will consequently reflect into profit.