We deep dive into the conscious consumer trend and share how retailers can be part of a huge potential market.

WHY THIS TREND, WHY NOW?

Today, where consumers spend their money is just as relevant as what they’re buying. Globally, 81% of them feel companies do not do enough to limit their impact on, and preserve, the environment, according to the Global Confidence Survey. Increasingly, they reflect on purchases – how was this made, what impact does it have on those who made it, are they paid fairly, is it sustainable?

The concept of a “conscious consumer” dates back as far as the 70s, although it has increasingly come to prominence and will continue to be a large contributing factor as to whether customers spend their money with you. With greater transparency comes more questions and where they choose to spend is just putting their money where their values are. It’s not just a handful of diligent do-gooders either – 73% of consumers globally seek to change their consumption habits to reduce their impact on the environment.

“Do I need this?” will be the single most important consumer question of 2022 – NielsenIQ

WHAT DOES THAT MEAN FOR RETAILERS?

The good news is that if you’re a brand that believes in social responsibility, you’re already ahead of the curve – but you must educate your customers (whether you believe they’re part of the conscious crew or not). Share the provenance of your products and internal initiatives that have a positive impact – it goes a long way.

“We think people are going to be buying things that last longer or matter more. There’s only so much clutter you can take, and that plays into the climate change discussion as well.”

— CLAIRE DAVENPORT, CHIEF EXECUTIVE, NOTONTHEHIGHSTREET

Online it’s even more important, as this is where customers can search for products that align with their values – sustainable, organic, local, etc. Brands like A Good Company have a hub full of information about the materials they use, how they’re sourced and even the decisions that go into choosing these materials in the first place. What might have once been privileged information available only to those in the business is now all part of your offering to customers. Now consumers consider those who don’t share as having something to hide.

YOUR SUSTAINABILITY STANCE

We’ve seen a whole host of brands and retailers make sustainability pledges – many aiming to have made lasting changes in just a few short years.

“By no later than 2025, all of our own brand plastic packaging will be reusable, recyclable or compostable.” – Morrisons, UK
Tide claims to have the “1st plant-based liquid laundry detergent”.
Tesco have pledged: “Our packaging will be fully recyclable by 2025. All paper and board used will be 100% sustainable by 2025. Halve packaging weight by 2025.”
Industry leaders from 27 major businesses (including Tesco, Asda, Sainsbury’s, Waitrose, Marks & Spencer and Iceland), signed the UK Soy Manifesto. This is a huge step in preventing deforestation and habitat destruction as a result of soy supply chains, and their mission is to do this by 2025 at the latest.

Developing your brand’s stance on sustainability not only wins the trust and favour of your audience, but it can also be an opportunity to stand out from a close competitor. The market is growing every year, too. As consumers are educating themselves around the impact of what they buy and consume, they’ve come to rely heavily on sustainable products. It’s big business – especially amongst millennials who are willing to pay more for eco-friendly alternatives.

ORGANIC AND FAIR

The organic trend is still booming, and it’s here to stay. The availability of organic and Fairtrade products has increased greatly over the past few years, as consumers become more conscious around the ingredients and origins of the products they buy, and companies continue to grow their ranges – from chocolate to coffee to clothes. Concerns about chemicals, pesticides and fertilisers, as well as ethical considerations around how workers are treated and animal welfare, are driving this behaviour. Young consumers in particular have a desire for healthier, ‘cleaner’ food and drink, and retailers can capitalise on the opportunity with their offerings.

“52% of organic consumers are millennials, with 40% now following a plant-based diet.”

— THE ORGANIC TRADE ASSOCIATION

Being transparent about the origins of your products, and your missions, will help to reassure consumers. Tony’s Chocolonely have prominent messages on their website and packaging sharing their mission to make all chocolate slave free, and informing customers how they can help join the movement.

KEEP IT LOCAL

Using local producers and celebrating the diversity of the community goes a long way to feeling like your brand’s presence is doing good. In a store environment there’s ample opportunity to share your quality credentials, telling the stories of how your products are made. Shoppers are savvier than ever and with that comes a responsibility for retailers to be more transparent on sourcing and creation, educating customers at key touchpoints, both in store and online.

Championing Local – Our work for Winn-Dixie

SHARE YOUR STORY

Having a compelling story behind your brand is one way to make a genuine connection with your audience. What are your beliefs and values? Consumers seek brands whose values align with their own – whose purpose, beliefs and actions reflect theirs. Be as transparent as possible about all areas of your business, from supply chains to animal welfare to internal initiatives. And the most important thing is to walk the walk – customers will see through (and rightly call out) brands who don’t stay true to their own belief system.

Plant-based drink company Rebbl began as a “cause looking for a company”. They’ve dedicated themselves to sustainable labour and farming practices, and donate 2.5% of net sales to the anti-trafficking organisation Not For Sale. Their approach is “regenerative”, meaning the more success their business has, the better their foreign growers do, and the better their charitable arm will do in protecting growers’ interests. Having a specific story and cause for your brand is who you are, and who the world will see.

GIVE BACK

Part of doing business in a socially responsible way is about putting something back into the community you serve. Consumers are more likely to spend with you if they can see that your brand is doing good, for their community or for others. Being a catalyst for change in the community is a great start, or providing easy ways for customers to engage in donations of other initiatives that support local causes.

BLQK Coffee (founded by former NFL player Justin Watson) are committed to pouring 25% of their profits back into Black communities. They donate to organisations that improve access to education, bridge opportunity gaps, and create mentorships for young people.

“Shoppers prefer to buy from charitable companies because it makes them feel good… In fact, 81% of millennials say they want to support brands with corporate citizenship.”

— FORBES

These are just some of the ways consumers are looking for brands to be more ethical and responsible, not to mention a host of personal changes they’re making to reduce their own footprint, including re-commerce, slow fashion, natural beauty products, and changing to plant-based diets.

THE TICKETY BOO VIEW

Overall this is a movement that’s seen a meteoric rise as a response to our changing behaviour and growing awareness of what we’re buying, and how much – our transformation into more conscious shoppers. Brands that go above and beyond when it comes to presenting their values and mission, while understanding and providing social responsibilities for their customers and community, will be the ones that consistently come out on top. If you’re a brand looking to be part of the movement, start to think about how you can entice shoppers to spend with you. Be brave, be transparent and make the shopping experience as responsible as possible.

5 WAYS YOU CAN APPEAL TO CONSCIOUS CONSUMERS

Here are just some of the ways you can make your brand appeal to a more conscious consumer…

Be transparent – in all areas of your business, from supply chains to internal initiatives, and communicate this clearly to your customers.
Put your money where your values are – animal kindness, fair trade, organic or social enterprise.
Be more agile with sustainability – continue looking for ways to be more eco-friendly: where can you minimise packaging? How can you cut waste?
Walk the walk – if you make sustainability pledges or supplier promises, keep them. Showing you’re committed will build trust with your customers.
Give back – consumers are more likely to spend with you if they can see that your brand is doing good, for others or the local community.