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'Purpose and passion'

Future consumers prefer brands with clear messages.

As a backlash to the easily available solutions with fast delivery and low prices, more and more consumers are looking for brands with a clearly defined purpose – something they are enthusiastic about and which they would like to share with their customers. Also professional purchasers prefer brands that are working with a relatable purpose – other than the bottom line.

Responsibility and courage win the hearts of the consumers

Brands showing responsibility win future consumers

Is there really any news under the sun when talking about ‘brand purpose’ and ‘corporate activism’? Have brands not always talked about mission, vision, purpose and the importance of differentiating from the competitors and win the confidence of the consumers? Certainly, so the real issue is perhaps that in particular the new generations of consumers are more than ever ready for brands with a clear position or which are actively involved in the world's problems and challenges. Research indicates that more than 60% of consumers under 30 years prefer brands with ”an opinion and attitude" while the figure is below 50% for consumers aged 40 or more.

Purpose and passion should be distinguished from CSR and 'cause marketing' which have been on the agenda in many companies for a long time. CSR may have a tendency to be a set of rules formulated by the company’s HR department just like ‘cause marketing’ is often a good cause selected by the marketing department. None of these form the basic focal point which has to characterise the company from top to bottom in order to win the hearts of the newer generations in particular.

The young generations lead the field

It is in particular the new generations – Z and Millennials – which indicate that they prefer brands with a clear purpose. And if you as a brand want to reach these generations, technology is the means and clear society beneficial messages are the goal:

Generation Z
The generation born during the period 1997-2012 and is described as 'digital natives'. They are practically born with mobile phones in their hands, they are optimistic and confident, they are used to support, dialogue and participatory democracy and many have a dream of being self-employed and turn their interests into a career. Studies show that Generation Z care about race equality, financial equality and equality of the sexes. Furthermore, the environment is very important to the Z's.

Millennials
or Generation Y, as they are also called and who are born during the period 1981-1996, have so far been the most digitalised and technology interested generation, also known as ‘the multiple screen generation’. They are often characterised as outgoing, progressive and tolerant because from an ethnic point of view, they are the most diversified generation so far. Studies show that the Millennials are actively looking for brands which share the same values as they do – including that brands can document an environmentally justifiable production, social responsibility and that they are active contributors to society.

The generations defined by PEW research

Source: PEW Research Center


Stores with attitudes

The Pfluid Project

– fashion without gender

During Bizzkit’s participation at the world’s largest retail conference, NRF Big Show in New York in January 2019, we visited The Pfluid Project’s store in Manhattan. The store’s message is ‘fashion without gender’ with a clear mission to ‘challenge boundaries with humanity’. A message that characterises the store, webshop, marketing and staff and which appeals to the consumers.

As a result, The Pfluid Project, which was launched in March 2018, achieved the following during its first eight months due to its sharp profile and communication:

  • 155,000+ unique web visitors
  • 500,000+ page views
  • 25,000+ followers on instagram
  • 20% conversion rate

ORGANIC of course!

Bizzkit visited The Pfluid Project who has a clear mission that appeals to customers

Reformation

- Being naked is the #1 most sustainable option. We’re #2.​​​​​​​

Bizzkit visited Reformation, which goes all-in on sustainably produced fashion clothes

The fashion industry is among the world’s five biggest sources of pollution. The Los Angeles based clothing brand, Reformation, has since the beginning in 2009 had a clear mission to deliver ‘sustainable fashion to everyone’.

Among the key factors to be able to comply with the mission are own production and use of local suppliers. Reformation’s own factory only manufactures sustainable clothing and is responsible for 80% of Reformation’s total production. The last 20% are supplied by local subcontractors which are carefully selected and supervised with great care.

Today, Reformation is a cult brand with 14 stores in the USA, webshop, 250 employees, an annual turnover of more than USD 140 million and 278,000 followers on Facebook.

We visited one of Reformation’s stores in New York. A store which gives the customers an ultramodern shopping experience:

The store works as a ‘shoppable showroom’. All styles are only available in one size in the store making the store clear and inviting.

Mobile POS’s make it possible to finish the purchase everywhere in the store.

When a customer wants to try on some clothes, she orders the requested sizes on a touch screen, goes to the fitting room, opens a closet and finds the requested styles ready to try on. If the customer needs more styles, these are ordered via the touch screen in the fitting room. We found the fitting room system not only ‘entertaining' but it was also an efficient and comfortable way to use the latest technology.

However, Reformation’s webshop is responsible for 80% of the brand’s turnover. A webshop which emphasises the use of competent photographers, beautiful models, good styling and high quality photo editing. In addition, the use of data across channels helps to generate the more than 200,000 unique visitors every month and ensures a high conversion – “We created a store where all the interactions are tracked,” which founder of Reformation, Yael Aflalo, has explained.

Fie from Bizzkit is testen the fitting room system at Reformation.

Professional purchasers miss B2B brands with clear messages

In a study performed by Iris Business among 640 decision-makers in four countries, two out of five said that they did not find that B2B brands represented something they could relate to. Regardless of the fact that brands which stand out as ‘purposeful leaders’ and which are considered to take a special stand, are more likely to be recommended to other colleagues in the organisation.

Webshops with attitudes

If e-sellers not ‘only’ wanted to compete on price, fast delivery time and free return, it is possible to gain the consumer’s favour by involving ethical and environmental principles in the business.

Studies conducted by Dentsu Aegis Network indicate that 38% of the consumers would deselect products if there is not sufficient information about the origin and contents of the product. In this way, transparency, where the customers can easily find information about where and how a product is manufactured, how long and how the product has been in transit before it hit the warehouse, etc., can help differentiate a brand from the competitors and create distance to the very powerful market places.

It is also likely that the consumers more and more often will ask themselves whether the webshop in which they have shopped, has made sure that packaging and shipment has been carried out environmentally sound.

Webshops that dare to be transparent about production and delivery can differentiate themselves from the marketplaces

It may, obviously, pose a risk to stand out and remain firm on selected and perhaps even controversial messages, and brands have to be ready to win new fans and at the same time say goodbye to others. In return, the large study conducted by WPP Kantar has shown that brands, which the consumers consider to have a ‘positive influence on their lives’, experience an increase in the brand value which is 2½ times bigger than brands which are not considered equally positive.​​​​​​​

Shall we discuss the possibilities of Social Commerce?

Please contact CEO, Lars Hedal, at
tel. +45 40 25 50 83 or email: hedal@bizzkit.com

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