NEW CONSUMER EXPECTATIONS AND OPPORTUNITIES

“Survival of the fittest” is often attributed to Darwinism.  More accurately, however, Darwin was describing “survival of the flexible” as those species most rewarded with longevity.  In the midst of an economic crisis stacked on top of an environmental crisis, it is this agility that is quickly defining the business and community leaders of tomorrow.

Consumer Expectations

Understanding current financial limitations while remaining focused on the critical triple bottom line is the fundamental challenge for today’s organizations. The current confluence of an environmental and economic crisis is the greatest opportunity for culture change of our times.  Companies and organizations that both understand and react to the latest in consumer expectations are well positioned to offer beneficial goods/services to customers and financial stability to their stakeholders.

These new consumer expectations include:

Transparency over spectacle.– Thanks to speed of accessing information, modern consumers are willing and able to research the companies and organizations they support.  Much like Consumer Reports provides insight to product performance, blogs and NGOs eagerly provide more and more information regarding a company’s social and environmental performance.  In an era where everyone has a voice, most Google search returns are user generated content, rather than corporate sponsored communication. This is your advantage.

According to the Reputation Institute, using its innovative reputation-modeling, a 10 percent increase in corporate reputation translates into a 1.3 percent increase in bottom line corporate value.   Reputation is a trust issue.  Trust is achieved through transparency.

Strive for Transparency over Spectacle.  Report on it in your marketing and through standardized transparency reports (i.e. GRI).

Dialogue over monologue. – Social Networking sites have created the marketplace of the conversation.  Consumers are using online conversation, status notifications and group affiliations (neo-tribes) in their social life.  This is transcending the social and is becoming a business requirement as well. “What is Company XYZ doing right now?”  Shell has launched Shell Dialogues to “explore the energy debate.”  At the site, stakeholders can engage with Shell experts on a variety of topics.   This can be viewed as a hijack of the strategy in question, but they are hijacking it for a reason.

Old school marketing of broadcasting a single, unreturned message is a failed strategy.  Today’s consumer wants to engage with the brands they support.  They want to shape them in their own image, not the other way around.

Whenever possible, ask questions of your customers.  Then, of course, listen, engage, react, and say “thank you.”

“Fans” not customers. – In the Green Space, there is still quite a bit of “badge wearing.”  The modern consumer is looking for unique opportunities to walk their own talk.  When they find a brand that supports their mission and furthers their own brand of environmentalism or social justice, they talk about that brand, service or idea to their social networks.  Old research demonstrated that the LOHAS consumer disliked being “marketed to.”  This is likely true of all consumer segments.  However, beneficial goods and services that reinforce personal brands have an amazing opportunity to create a fan-base out of their customers. Method and Dansko are great examples of this.

Treat your customers like fans, rather than customers. Create moments and stories they can share with their friends.

Cultural value AND immediate gratification. – Your new fan-base is hungry to support corporations that support their own cultural values. But they also want the perceptions of a fair price.  They want transparency.  They want value.  And they want it now.

“Green” as a product attribute can be a powerful motivator, but it is rarely the only motivator.  It is a new feature – in some cases it’s that new car smell.  Don’t be confused into thinking that your product or service can live on green attributes alone.  Make sure your fans know both your cultural value and economic value.

Play on the same field as your non-green competitors, and then spike the ball with extraordinary cultural value.

New Opportunities

As disposable income decreases, consumers will naturally be more fiscally conservative.  But, the smart ones with a little more expendable income will choose banks they are culturally aligned with. They will choose wisely where they can get the most economic and cultural bang for their buck.  They will deposit their money with companies they trust and share values with.  Build a brand to reinforce this. There are two strategies for building brands:

1.    Earn them
2.    Buy them

Both strategies work. One takes money.  One takes time. Immediate return is what got us into this mess. So let’s choose enduring value over immediate return.

Cut your media buy, but engage your fan-base in new ways.

•    Invest in social media
•    Invest in public relations and blogger relationships
•    Create public events that do MORE than just promote your business.
•    Promote those events.
•    Build a heroic brand.
•    Develop deep economic and social relationships with mission-aligned non-profits.

And then, okay, if there’s money left over, buy an ad.  Smart marketing dollars spent during a down economy are far more powerful than money spent during boom years.  Consider that each dollar represents a greater percentage of the overall marketing expenditure in your given industry.

We are at a unique place and time.  The crossroads of environmental and economic crisis provide agile companies with the ability to capture market share in a down market.  Beneficial corporations and start-ups have the advantage in this market.  We are the future value chain for products and services.  We offer more than product.  More than status.  We offer solutions to the crises of our time.  People need that.  Companies with environmental and socially beneficial goods and services will manage through the current economic crisis and build value for the very sector that they helped create.  Modern consumers are looking for solutions, perhaps even heroic companies to support.

Given 75 percent of a respectable media budget, innovative marketing and stakeholder engagement can return far more value in the long-run.

In the short-run, however, advertising is just the price you will pay for not being creative.

John Rooks is the President/Founder of The SOAP Group (Sustainable Organization Advocacy Partners) – a communications advocacy company developing sustainability messaging and branding for corporations, start-ups, non-profits, traditional ad agencies and all the crevices in between.
SOURCE: Environmental Leader

A FLORAL ETHICAL EXPLOSION AT H&M THIS SPRING

Romantic, exotic, glamorous or abstract: this spring’s floral patterns provide an injection of creativity and a love of fashion into your wardrobe. The floral looks are inspired by chlorophyll-green gardens, sundrenched landscapes and even 70s hippie chic flower-power. The romantic garden collection is made using organic and recycled materials. All the garments have been produced using sustainable materials or using recycled PET bottles or textile waste.

This spring’s bright and flowery fashions can update and rejuvenate your wardrobe and offer a modern, sustainable look whatever your personal style. The collection includes a feminine chiffon dress made from recycled polyester with a colourful garden print, a pinafore dress in organic cotton with romantic roses and a smock dress in organic cotton with an ethnic floral pattern. An organic cotton top in a small floral design or a frilly chiffon top made from recycled polyester can be combined with cropped trousers or shorts in organic cotton and/or linen. A beige anorak can be worn over a floral jumpsuit, both of which come in tencel.

Sustainable materials

• Organic cotton is cotton that has been grown without the use of hazardous chemicals.
• Organic linen is linen that has been grown without the use of hazardous chemicals.
• Recycled polyester is polyester made from PET-bottles or textile waste.
• Tencel is silky, renewable material produced with minimal environmental impact.

Source: The Garden Collection by H&M

ECOCHIC LAUNCHES SUSTAINABLE FASHION SHOW, EXHIBITION & SEMINAR IN GENEVA

As the 2009 International Year for Natural Fibres draws to a close and the focus begins to shift to 2010, the International Year of Biodiversity, Green2greener is delighted to announce its collaboration with the United Nations Conference on Trade and Development (UNCTAD) on a series of activities that will highlight the importance of natural fibres and biodiversity in sustainable development strategies.

EcoChic Geneva will take place on January 20-21, 2010 at the Palais des Nations, the UN headquarters in Geneva. The event will commence with a 1.5 day seminar which will look at “Redefining Sustainability in the International Agenda” from the perspective of the fashion and cosmetics industries.

The seminar will be followed by a high-profile gala evening on Thursday 21 January. Highlights include the launch of a Sustainable Fashion Exhibition and dramatic EcoChic Fashion Show featuring sustainable and ethical ready-to-wear and couture looks by fashion designers from around the globe. The Exhibition will be subsequently opened to the public free of charge until February 4, 2010.

This series of activities will bring together senior representatives from the private sector with key decision-makers from government, civil society and other public sector organisations. For more information or to find out how you can get involved, please contact us at ecochic@green2greener.com.

WHOLE FOODS RECEIVES “2009 SOCIALLY RESPONSIBLE RETAILER AWARD”

Whole Foods Market (Nasdaq: WFMI), a leading natural and organic grocer, today received the Natural Products Association’s “2009 Socially Responsible Retailer Award” for excellence in integrating social responsibility into multiple aspects of business.

“This award recognizes that our retailers are valued and integral parts of their communities, and that they provide much more than simply a place to purchase natural products,” said Natural Product Association President Debra Short. “All the award recipients are serious about being a source of support for their employees and their communities in environmental, social and educational efforts, and the work that Whole Foods Market and its Foundation do are excellent examples of how dedication to local and global action can generate positive results.”

While there were several determining factors for selection, the work of the Company’s nonprofit Whole Planet Foundation was the primary reason that Whole Foods Market was chosen for the award.

“The Whole Planet Foundation represents an incredible expansion of Whole Foods Market’s mission to actively lend a helping hand to our global neighbors in communities that supply our stores with products,” says Philip Sansone, president and executive director of The Whole Planet Foundation. “We are thrilled that our nonprofit work through the foundation was recognized as a key factor in securing this award for Whole Foods Market. Caring about our communities and our environment is one of our core values, so to be one of only three companies to receive a ‘2009 Socially Responsible Retailer Award’ is a tremendous honor.”

Established in October 2005, The Whole Planet Foundation empowers the poor through microcredit in developing countries where the Company sources products. To date, the foundation has committed $9.9 million for micro-lending projects, and has provided $5.3 million in grants to microfinance groups around the globe, resulting in $13 million in microcredit loans – usually less than $200 – to start home-based businesses. The project has given more than 41,000 people the chance to lift themselves and, on average, five family members, out of poverty, effectively impacting a total of 205,000 people in communities in Africa, Asia and Latin America.

Sansone accepted the award this morning at the Natural Products Association’s annual trade show and convention in Las Vegas.

To learn more about The Whole Planet Foundation and its mission, or to donate to the nonprofit, visit: http://www.wholeplanetfoundation.org/

 SOURCE  Whole Foods Market

EXPLORING MODERN PHILANTHROPY

Philanthropy

The main focus of the American Express Publishing Luxury Summit 2008 was exploring the changing world of philanthropy. Luxury and philanthropy are a natural match but some companies are scrambling to show that they are doing their part for the greater good. The good news is that some are having a lot of fun doing it. If I learned anything this week regarding the new philanthropy it is that is has to be compelling and interesting for the companies and people involved. The start of the discussion on the new philanthropy was led by Lisa Gabor, the editor of the magazine just for American Express’s ultra-wealthy Centurion card holders, Black Ink, Barbara Banke, who is the co-proprietor of Jackson Family wines and has also turned her talents to horse racing and Marjorie Federbush, President, Strategies and Synergies.

Philanthropy in the modern age is high-impact, hands-on and results-oriented. People are using philanthropy to continue personal and professional interests. Making it a way to explore hobbies or indulge at the same time as doing something for the greater good is one of the most popular ways to give, this is one of the reasons wine auctions and festivals work so well. The wineries and brands get visibility, the donors get a great time and the charities reap the benefits.Branding has also become increasingly important for nonprofits. Some nonprofits, museums like the Guggenheim, etc. have brand recognition and therefore brand power. Marjorie Federbush made the point that non-profits are now using the techniques of corporate brands in order to keep their non-profits exciting and interesting to people. In a later talk, Dana Cowin, the editor in chief of Food & Wine held a panel with Michelle Kydd Lee, the director and founder CAA Foundation, talked about how the celebrity/cause connection works. These days just about every cause has a celebrity attached to it but the way this happens is often convoluted. One thing is for certain is that it has to be authentic and genuine. Also some nonprofits find that selecting a celebrity isn’t necessarily about choosing the biggest names. Michelle Kydd Lee told the story of Angelina Jolie’s entry into activism. After she first traveled to Cambodia and became interested in helping her reputation was still sort of edgy and dodgy )the Billy Bob Thornton years) so she wasn’t necessarily a fit for some organizations, the UNHCR was willing to work with her and she has gone on to do amazing things for them. Celebrities are also like other high net worth individuals, they want to be more deeply involved with the causes. They do the research, travel to the places where the need is and find that the philanthropic urge is also coupled with personal enrichment.

No discussion of modern philanthropy would be compete without a look at how the internet has changed the ways people give. The numbers of people giving online is on the rise with nearly one quarter of total donations coming in online. Also many people are using online research tools such as Charity Navigator to determine which charities to support. New technology such as the Google satellite maps, can help people see the trouble spots in the world from thousands of miles away. Also when people give online they can sometimes select certain projects such as through the Donor Choose website.

One organization that has done extremely well online (we’ve covered them many times) is Clothes Off Our Back. Actress Jane Kaczmarek was at the Luxury Summit in conversation with John Atwood, the editor in chief of Travel + Leisure Golf to explain just how the charity she founded works. As she puts it, when you get lucky in Hollywood, you get really lucky and she has found a way to turn that largesse into a greater good, getting celebrities to donate the clothing they often get for free to wear to awards shows. After their red carpet turn, the dresses, shoes, tuxes and some jewelry get auctioned off online through the website. Since 2002, Clothes Off Our Backs has raised over $2 million for children’s charities. This online nonprofit has also really mined the power of sponsorships through co-branded efforts with Saturn/Richard Tyler, the celebrity-designed corset auction with Frederick’s of Hollywood and Little Black Dress wine which auctioned off celebrity little black dresses with signed bottles of wine. It’s a win-win situation much as the wine auctions mentioned above because everyone gets a benefit. For example the dress Jennifer Aniston wore when she won an Emmy sold for $50,000 (for a girl to wear to her prom) and that money paid for immunizations for 50,000 children.

Why bother with philanthropy? In a world where so much seems wrong and if you are lucky enough to have money why not just enjoy it? Designer Donna Karan, whose talk closed out the conference, is another example of the new philanthropy (another woman, which confirms my thought that it is women who are driving the charge of modern philanthropy) and proof that when we try to save the world we are saving ourselves. Karan, who has spent her life dressing people, is now on a quest for the inner dress, how to hold body, mind and spirit together in a chaotic world. Her Urban Zen initiative has three charges: to preserve the past, help the present through wellness and protect the future by helping children. One of her special projects is helping to create a way for yoga teachers to get certified to work in a clinical setting so that they can help cancer patients in the same way that her husband’s yoga teacher was with him when he was dying from lung cancer. Of course, since it’s Donna Karan there is also a fashion line to go along with it, fashionable draped clothing in sustainable and recycled fabrics that mimics the styles worn by eastern nomadic tribes for centuries. Commerce and philanthropy increasingly exist in the same space, competing for the same attention from shoppers and so merging them makes sense. The power of a brand can benefit a charity and the brand name of a charity can also add gravitas to a company. For consumers, the same process of shopping for a product, following their passions and using online research before making a decision is used to choose which charity to support.

Source: Luxist, Author Diedre Woollard, Apr 2008

NEW TRAVEL AND TOURISM CLIMATE INITIATIVE LAUNCHED IN COPENHAGEN

“Live the Deal”, an innovative, global campaign to help travel companies and destinations respond to Climate Change, reduce their carbon footprint and move to the Green Economy, was launched this week during the Copenhagen Climate Summit.

Announcing the new initiative, long time tourism green campaigner Geoffrey Lipman UNWTO Assistant Secretary-General said: “What Copenhagen represents is a new commitment by the world community towards sustainable low carbon growth patterns. The targets and mitigation actions that countries develop and negotiate through this process will be a new base for travel industry action. What we are providing is a very simple way to get behind the evolving government initiatives, to keep pace with changing patterns and to demonstrate that our sector is acting, not simply talking.” He added ”We should not be ashamed to promote the growth of smart travel – clean green, ethical and quality – it’s the lifeblood of trade, commerce and human connection”.

“Live the Deal” follows the pattern established in the UN led Copenhagen Seal the Deal campaign by its single minded focus, its simplicity and its broad based engagement goals. It will seek to encourage the sector directly and through representative organizations.

It has been developed with the support of UNWTO, whose Secretary-General Taleb Rifai calls it “The kind of link between global policymaking and responsible tourism action that we are looking to inspire and encourage. Our sector fuels the economy, creates jobs and is one of the biggest development opportunities for the world’s poorest countries – and it can be a leader in the transformation to a green economy”.

The campaign will be underpinned by a simple carbon calculation tool that allows easy correlation with government targets and implementation measures, as well as a Think Tank and Annual Innovations & Investment Summit. The inaugural Summit will be in Abu Dhabi in the last quarter of the year. Live the Deal will be promoted by a multimedia video “We can take this Climate Change” from platinum album writer and singer Alston Koch which will be profiled around the world in 2010.

Source: Travel Daily News

GOING GREEN: THE FUTURE OF LUXURY

It is a challenging time for the luxury industry, with the economic downturn threatening sales, and a growing awareness of real social and environmental challenges, such as climate change, wars over resources and increasing consumer expectations of luxury brands. …

Presented by: Dr Jem Bendell

EUROPEANS MORE “GREEN CONSCIOUS” THAN AMERICANS

A new survey has revealed that Europeans are 50 percent more likely to buy environmentally-friendly products than Americans, from solar panels to organic foods and sustainable wood to toiletries and household products. The survey also shows that Europeans are 25 percent more likely to recycle and to try to influence their family and friends to buy green goods and be environmentally conscious.

Green consciousness is now a way of life in Europe.

The results of the LOHAS (Lifestyles of Health and Sustainability) study, which were released on 29 October, show how far green consciousness has filtered into everyday European life. The study divided the adult population of Europe according to people’s buying patterns, product use and attitudes to various matters, including sustainability, corporate responsibility and the use of environmentally friendly products and services.

The eight countries featured in the survey were Belgium, Germany, Spain, France, Italy, the Netherlands, Portugal and the United Kingdom. Insights revealed included what people think about health and environmentalism, as well as how they affect their lives, where they buy environmentally-friendly goods, what motivates their choices, and their attitudes towards issues such as the responsibility of large corporations towards the environment.

The results also showed that Europeans are 32 percent more likely to buy products that have organic or environmental stamps of authenticity on them, despite the fact that the researchers found that Europeans are approximately 25 percent less likely than American shoppers to pay more for environmentally friendly products.

Environmental initiatives carried out by the European Union in the past 20 years, such as the creation of recycling points across Europe, and policies on major environmental issues such as sustainability and cleaner air and water have played a large role in developing a “green consciousness” among European consumers. The enormous rise in popularity of organic food production and natural medicines and therapies, which are publicised frequently in the media, are also contributing to the growing green consciousness.

The LOHAS survey was the result of a partnership between the Natural Marketing Institute (NMI) and the international public relations firm Porter Novelli. Steve French, managing partner at the NMI, said, ‘As the global eco-momentum in the marketplace continues, the LOHAS movement will accelerate consumer alignment of social beliefs and personal values with those of brands and companies. It is this frame of mind that will drive the LOHAS market and make sustainability the key growth driver of long-term stakeholder and brand equity for decades. We are delighted to partner PN in helping companies to understand this truly sustainable opportunity.

Source: European Commission Research, November 14th 2007

THE POST CRISIS CONSUMER BY JOHN GERZAMA

John Gerzema says there’s an upside to the recent financial crisis — the opportunity for positive change. Speaking at TEDxKC, he identifies four major cultural shifts driving new consumer behavior and shows how businesses are evolving to connect with thoughtful spending.

TEDTalks is a daily video podcast of the best talks and performances from the TED Conference, where the world’s leading thinkers and doers give the talk of their lives in 18 minutes. Featured speakers have included Al Gore on climate change, Philippe Starck on design, Jill Bolte Taylor on observing her own stroke, Nicholas Negroponte on One Laptop per Child, Jane Goodall on chimpanzees, Bill Gates on malaria and mosquitoes, Pattie Maes on the “Sixth Sense” wearable tech, and “Lost” producer JJ Abrams on the allure of mystery. TED stands for Technology, Entertainment, Design, and TEDTalks cover these topics as well as science, business, development and the arts. Closed captions and translated subtitles in a variety of languages are now available on TED.com, at http://www.ted.com/translate. Watch a highlight reel of the Top 10 TEDTalks at http://www.ted.com/index.php/talks/top10

CONSCIOUS COMMERCE, GREEN CAPITIALISM AND GREAT CONNECTIONS: LOHAS FORUM 2009

The 13th annual LOHAS (Lifestyles of Health and Sustainability) Forum, held in Boulder last week, brought some of the world’s most influential conscious commerce leaders, green businesses, and inspiring personalities together for three days, building connections and exchanging ideas for a brighter world and healthier planet.

Over 500 people from all over the globe filled the St. Julian hotel, and representatives from about 260 businesses were in attendance. The air was filled with that electric feeling present at every gathering of like-minded people, and during breaks in the sessions, connections were made, business cards exchanged, and deals and joint ventures were being built.

For the LOHAS business owner, the Forum was filled with practical information, including sessions covering LOHAS Market Data, engaging multicultural markets, investing in human capital, and branding for sustainability. The LOHAS market worldwide is estimated at over $209 billion a year and growing, and includes businesses that focus on sustainable living, health and fitness, the environment, and social justice. This new-ish market is booming, and companies that attended the Forum were hungry to know more about bringing their message to the mainstream.

For the human side of businesses, speakers such as Hunter Lovins (CEO of Natural Capitalism), Wade Davis (National Geographic), John Marshall Roberts (author of Igniting Inspiration), and Andrew Cohen (EnlightenNext) inspired and energized their audiences to continue to be engaged in positive change.

The Forum wasn’t only comprised of small businesses and niche market representatives, either. Some large mainstream companies like Coca Cola, eBay, Facebook’s Causes.com, and Wal Mart were among the presenters, and for some, this crossover interest in LOHAS is a sign of things to come.

“As we find ourselves at a critical crossroads within the business community, LOHAS is in the perfect position to help expand the ‘green’ marketplace by facilitating new relationships across industries.” – Ted Ning, LOHAS Forum Director

With sessions like “Lessons from a Radical Industrialist” by Interface Chairman Ray Anderson, and “Fortune 500 Companies Going LOHAS”, with representatives from Coca Cola and Wal Mart, the Forum helped to highlight the bridges to sustainability being built by big business.

Source: Ecopreneurist.com