Purpose-driven brands witness higher market growth and productivity than brands that overlook this point, and hence, organizations failing to be purpose-oriented risk being displaced by purpose-driven brands
Millennials today are extremely aware and conscious of the brands they invest in and perceives a brand based on its soul and identity. Organizations face a challenge in aligning consumers' expectations with their values. However, most of them have seen first-hand the real differentiators in how being purpose-led can resonate. Today, consumers are no longer buying products from a brand that just sells products at a fair price. They have become conscious buyers and make decisions based on various factors such as how brands treat their people, how they treat the environment, and how they treat the community in which they operate. Hence, brands need to stand for something bigger than what they sell and put a stake in the ground. Defining what the business stands for, being transparent and authentic about the purpose, and engaging with consumers on a deeper level by involving them in the brand’s innovation ecosystem would fulfill the objective of building stronger consumer connections and sustaining their competitiveness.
Sustainability has reached a tipping point where consumers can change their consumption and purchase habits to bring down environmental impact. I feel that when we have something concrete to place at the center of the brand, it gives the audience something deeply personal to connect to and is highly beneficial in developing a long-term, meaningful relationship with them. Our strategy's fundamentals have always been in line with ‘Goodness Inside,’ and we have stood by it since our inception. This objective was to establish the brand purpose and extend the same thought to our consumers. Through this , we wanted to strike a chord and engage with the millennial generation as we have the same belief system and make our choices with the same philosophy of goodness. Our products and innovations are focused on the millennials as we have realised that understand the importance and impact of safe, toxin free propositions, and are fast choosing brands that care about the environments along with their businesses. We have been honest and committed to providing 100% toxin-free products with natures goodness that is good not just for the consumers but also for the environment. Another step towards environmental sustainability was the #PlantGoodness campaign. The commitment is to plant saplings towards every order made and plant one million trees in the next five years. This campaign was built on the concept that goodness comes from inside, and by ordering any product from the website, the customer is doing their bit by contributing towards a better future. The values that we uphold helped us build a sustained relationship with our consumers and proudly call them ‘Goodness Ambassadors.’ We live our purpose, and probably that’s why we have been able to occupy a meaningful place in our customers' minds and catapult our growth.
Purpose-driven brands witness higher market growth and productivity than brands that overlook this point, and hence, organizations failing to be purpose-oriented risk being displaced by purpose-driven brands. The nature of business today is being changed by purpose-driven brands. Hence, they embed purpose in every action to leave a deep impact on people’s lives. The circular economy is gaining momentum and brands arere actively looking to engage with consumers to influence their behaviors and change their perception of the brand through various marketing, sales, and promotional activities. As consumers continue to gravitate towards more sustainable products, brands are no longer judged solely based on how their product smells and what it can do to an individual consumer. Through their preferences and opinions about the brand attribute to where the company stands in the market. Company values greatly influence these preferences, and this is true across both mature and emerging markets. Brands have understood the derived value of doing good in society and how being purpose-based can help them bring something unique to the table and reach out to a large audience section.
(The author is Varun Alagh, Co-founder and CEO, Honasa Consumer)
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