Products with a purposeBY Australian Retailers Association
In a world where people are seeking purposeful purchases, businesses are now introducing healthier, safer, and more environmentally focused products as the competition of sustainability grows.
In a purpose driven world, where everyone strives to find meaning through good choices and fulfilment, companies are under more pressure than ever before. In fact, according to the Cone Communications and Ebiquity Global CSR Study, 90% of global consumers are more likely to switch to brands associated with a good cause. This trend isn't going anywhere any time soon, so what are we doing about the rise of the ‘conscious consumer’?
With the world affected by excess waste destroying both our land and oceans the changes in buying behaviours is at an all time high. Clothes, homewares, cosmetics, food products and medical care all starting to make environmentally focused changes in a traditionally chemical dense market.
Let’s get one thing straight, there is still a very long way to go. However more businesses are emerging and responding to current social trends and adapting to the demand of their customers. These changes are beginning to permeate the mainstream and creating a competition of sustainability across the market.
Green consumers leading the pack
‘Going green’ is no longer a stigma attached to a minority, in fact, it’s the ‘cool kids on the block’ that are now taking charge and leading the way.
In fact, eco-innovative companies are increasing by 15% annually, while other competitors remain flat. Why? Because consumers are engaging in purchases with businesses they trust. In order to gain trust and remain in favour with consumers, retailers are having to meet the demand by providing products and services that are better for their environment.
Looking to the future of consumer behaviour, where customers increasingly seek out sustainable and natural alternatives, James Dutton, Founder of Nutricare, said that green is set to be the new mainstream for commercial products.
“We’re on the brink of sustainability being embraced by the mainstream, and there’s never been a better time to be a profit-with-purpose business,” Dutton said.
This is just the beginning. The buying power of eco consumers will only increase as time goes on, which is one of the major reasons why successful businesses factor this in before they enter the market with new products. This is the ultimate way to achieve competitive advantage in the future as intense price competition becomes unsustainable.
Teaming with suppliers brings sustainable competitive advantage
Major retailers are facing a huge demand for rapid change in how their products are packaged. A Nielsen’s 2015 global sustainability report showed that 52% of consumers are making purchase decisions based on packaging that shows the retailer is making a positive social and environmental impact.
New to the market brands like Nutricare are able to respond to changing customer preferences quickly. Later to market, innovative brands are founded with the core mission to reduce excess waste with their packaging and create sustainable alternatives, which appeals to both customers and the retailer.
With this in mind, supermarkets and grocers are urged to pay closer attention to the ‘little guys’ pathing the way for environmental innovations to replace a chemically dense market. Let’s look at this as a win-win opportunity for grocers to increase their flexibility to meet standards, and promote consumer based incentives.
Although the rise of the purpose-driven consumer raises the challenge of competitive sustainability in the market, businesses have the opportunity to embed real social change into the core of their thinking.
Ultimately, the goal is for manufacturers to reduce the cost of production associated with eco-practices, thus increasing volumes in the marketplace, that reflect greater profitability and opportunity for the eco-consumer.
James Dutton founded Nutricare in 2016. As an Australian natural health innovator, James has developed advanced solutions to common health and personal care items on the market. Learn more at nutricare.co/
ABOUT THE AUTHOR
Australian Retailers Association
Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association representing Australia’s $310 billion sector, which employs more than 1.2 million people. As the retail industry’s peak representative body, the ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.