The Retailer SUMMER 16_v7

10 / 48

10 | summer 2016 | retailer
Retailers Ignore Consumer Demands for
Ethical Brands at Their Peril
Frank Woods
retail insurance expert
NFU Mutual
THE APPETITE FOR BRANDS WHICH CAN DEMONSTRATE
AUTHENTIC, SOCIALLY-RESPONSIBLE CREDENTIALS IS
SHAPING THE FUTURE OF MAINSTREAM RETAIL.
We’ve all fallen victim to fads at some point in our lives. Who
doesn’t own a toasted sandwich maker now consigned to a
cupboard of forgotten gadgets, or a dodgy outfit hiding
shamefully in the wardrobe?
The difference between a fad and a trend is the former is all hype
over substance. Trends answer genuine consumer needs and gather
momentum through cultural shifts in lifestyles. It is easy to mistake
one for the other; correctly identifying and satisfying an unmet
consumer need is the Holy Grail for businesses.
There has been a noticeable rise in brands claiming to be
authentic, ethical and local; packaging and advertising proudly
express their socially responsible credentials. But can this be
dismissed as another fad?
This situation does mirror a shift among consumers living healthier,
more ethical lives as they turn their backs on brands lacking
authenticity or transparency. We want to feel good about the things
we buy and will seek out options enabling guilt-free consumption.
Whether buying from a farmers’ market, endorsing favoured
brands on social media, or choosing local business over corporate
giants, consumers are sending a message.
Brands must now take action to avoid potential criticism. It’s a fine
line between luxury and wastefulness; where the exotic was once
desirable, locally-sourced is now the ultimate badge of honour.
Connected consumers shun generic, globalised offerings.
They want true authenticity and as a result we see simple, natural
products are in demand - stripped back to the elements and
difficult to mass produce.
Trend Predictions
Global market researchers identifies key European
consumer trends, claiming: “We’ll see brands react to consumer
concerns by offering greater transparency in beauty and
household ingredients. Also, a shift towards more ‘kitchen
cosmetics’ as consumers seek to eat themselves pretty with those
foods promoting their European or local purity credentials.”
Multinational professional services firm, s consumer
tracker report identified: “Health wellness and responsibility as
the new basis of brand loyalty.
Emotional ties to national brands will likely decline due to growing
consumer discontent, with large companies’ perceived values
coupled with an increased consumer focus on personal health,
the environment, and social impact.”
In its 2016 report, concludes:
“Consumers are prioritising locally
grown, seasonal food for
environmental, thrift, freshness and
health reasons. Shopping nearer home
in smaller retail formats, such as
convenience stores and smaller
branches of supermarkets, and buying
street food, are both sustained trends.
Farmers’ markets, often selling organic
fare, epitomise this local trend and are
now a global phenomenon.”
Mainstream Adoption
Supermarket shelves groan under the weight of products advertising
traceability as a key feature. Larger retailers have caught onto the
fact that the buying public demands local, artisan products.
However, faking it is not an option. Consumers in the digital age
are increasingly capable and willing to debunk misleading claims.
Hard won plaudits for social responsibility can quickly be undone
for those accused of misleading customers, resulting in the risk of
damaged reputation.
Phil Bicknell, the National Farmers’ Union’s Head of Food and
Farming, highlighted Tesco’s recent move to rebrand some of its
lines with the names of ‘fictitious’ farms.
Having praised the supermarket giant’s sustainable approach to
working with milk suppliers, Bicknell questioned its decision to
create seven farm names to replace its Everyday Value range.
“The names of these farms don’t have any link to where the
product has been sourced from, something that has the potential
to confuse or even mislead customers,” he argued.
“Tesco are not the only retailer to have launched a brand such as
this. Morrisons use the ‘Market Deals’ brand to sell New Zealand
lamb legs on promotion and both Aldi and Lidl use farm names
within their branding. The key question to ask with this is,
customer focus