In order to capture the imagination and attention of younger generation, brands now a days are increasingly looking to portray themselves as ethical. David Tyrrell analyses the latest research that points to this trend particularly among Beauty Brands.
Climate change, a term that certainly generates strong opinions, is looked at closely by younger generations as their partnership with the planet will extend longer than their parents and grandparents. Similarly, younger generations increasingly seek out and support brands they perceive as ethical.
The term ethical can be defined as adhering to principles of what is “right” to do. Over half of US iGens and Millennials will purchase from ethical companies with 43% of iGens willing to spend more money on an ethical brand. Perhaps impacting the financials even more, 43% of the youngest generations actively promote ethical brands through social media in stark contrast to only 15% of Baby Boomers.
In an effort to appeal to younger, more ethically minded consumers, while showcasing initiatives to reduce their carbon footprint, skincare brands are spotlighting environmentally responsible approaches to create safe, high quality products. A leader in this area since its founding, Aveda tackles sustainability on many fronts that include using renewable energy (wind power), recyclable packaging, as well as using bioplastic alternatives derived from sugarcane when it can, in lieu of synthetics.
As we just passed the 1-degree C temperature increase for the planet, companies like L’Oréal and Unilever have joined in aggressively executing a multi-tier strategy to reduce their carbon footprints. This commitment across a variety of diverse interests continues to gain momentum as evidenced by the number of attendees at the 2015 Sustainable Innovation Forum. The forum brings together cross-sector representation including business, NGO and government to find ways to expand breadth of the “green economy.”
According to Mintel research, nearly two in five Millennials believe ethical and environmentally friendly are linked, compared to three in 10 Baby Boomers. Financial cost was often omitted from the environmental impact conversation in the past. Yet, that cannot be overlooked as nearly three in five US consumers purchase green to save money, suggesting that consumers view green as good, but exceedingly better when it is financially beneficial.
As pricing for green innovations becomes more palatable, the rate of adoption, and more notably an allegiance to green will evolve. Brands can take advantage by drawing attention to their usage of more popular, available, financially reasonable, clean energy alternatives that can sway consumer trial.