Brands and marketing: we’re failing consumers

As an industry, we’re all well and truly aware of greenwashing and the various issues that lie therein. The problem is that increasingly often discussion around sustainable initiatives starts and ends with greenwashing, and that’s preventing the industry from realising a much bigger issue: brands are failing to meet consumer demand, and that’s putting them on the verge of serious crisis.

Australian consumers want to buy sustainably, 89% of them in fact; but when it comes to making these purchase decisions, our data shows consumers can’t find sustainable products, can’t afford them, or don’t trust the options being presented. Nonetheless, the responsibility for making a difference is still perceived as a consumer behaviour issue, and it’s leading to serious guilt among the buying public. In reality, Australian brands are failing the consumer, and it’s time to make a change or be left behind.

The whole point of having a market is that it provides a very efficient way to deliver to what the consumer wants. But this system is broken when it comes to sustainable products. While 73% of people think society needs to become more sustainable before it is too late, only 8% believe they can always find sustainable alternatives when shopping. Moreover, cost of living now ranks as the number one concern for Australians, at 91%, but when it comes to making sustainable purchase decisions 58% of Australians are wary of greenwashing and blame it for being charged higher prices.

Marketers are already well and truly aware that budgets are tightening, and changes must be made to generate value with their consumers, but the vast majority of the current sustainable efforts are eroding trust and reducing that value. It’s a problem that is easy to point out and harder to fix, but certainly not impossible. And while analysing ROI on any business investment is of course critical right now, a shaky market provides a once-in-a-lifetime opportunity for businesses to take a risk and demonstrate real leadership. When times are tough, companies must make tough decisions, and the market is telling us there is real opportunity to increase sales if sustainable solutions are correctly presented.

So where do you start? It is tempting for companies to start meeting demand with what they can action fast and cost effectively, namely ESG initiatives and communications. The problem is, it’s this behaviour that has engendered distrust and led to consumers interpreting so called green products as a higher price point, almost luxury, good. Peter Senge’s well-known quote is applicable here: “We’re living in solutions to yesterday’s problems.” To avoid creating their next problem, companies need to consider and make change at a systemic level.

The key to doing this, and it is a deceptively simple answer, is to start with intent. Companies need to firmly establish what it is they are aiming to do and look at the tangible evidence that the consumer will see of that intent. It’s about finding a purpose that translates into tangible evidence, the sort a consumer will hold in their hands and see with their eyes.

That means organisations need to look across their entire system of operation, which can be distilled into four Ps: purpose, product, promotion and process. These all have to be aligned. Right now, the focus is too often on promotion alone, while the evidence shows not enough attention is being placed on products themselves. This is why consumers doubt the purpose and blame companies for using greenwashing as a tool to drive higher prices.

The truth is that, in many cases, if all aspects of the system are aligned it’s possible to reduce product cost through minimising wastage and establishing circular means of manufacturing. Often this begins with analysing the supply chain itself. Sustainability isn’t about just setting goals or changing the product, packaging or values alone but finding tangible ways to change how your business engages with the system. Once this is understood, it’s possible to both generate tangible value for consumers and implement sustainable cost-saving measures at the same time. It just requires bravery upfront.

Consumers are feeling increasingly guilty as they struggle with the burden of sustainability, but they shouldn’t: this is not a consumption issue, it is a production issue. The companies that recognise this and step up with easy, accessible solutions will emerge on top at a critical time where every purchase is being carefully considered. Now is a chance to find affinity with your audience, letting them know that when they’re having a tough time and that your business is making tough decisions. Those who fail to take the leap now risk losing some consumers for good.

Howard is the founder and CEO of Pollinate (who just launched Pollinate Sustainability) and director of The Influence Group. He is also a non-executive director at Planet Ark.

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topics brands comment greenwashing Howard Parry-Husbands Marketing op-ed opinion Pollinate Pollinate Sustainability sustainability

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