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The Impact of Social Media Consumers are more powerful than ever. They have the ability to thoroughly research a brand or a retailer and its practices (and increasingly do so in real time, thanks to smartphones), while social media gives consumers an interconnected platform to convey any feelings of distrust. Never has it been easier to rail about bad business practices, thanks to Twitter, Yelp, Angie’s List and the like. And while a handful of brands may have earned a consistent level of trust, many will probably always be seen through a veneer of suspicion, with every move analyzed for signs of an ulterior motive. That means unbiased peer and third-party reviews are likely to continue influencing decisions. Can we expect to see every item on the shelf in our supermarkets labelled with a rating from reviewers like Which? or Consumer Reports? Companies that can show their human side through storytelling and acknowledge their failings with grace will appeal to shoppers who can see through bombastic claims. Creating platforms that give customers a voice to shout about their experiences will help brands position themselves as transparent – an attractive trait in today ’ s climate. In the UK, supermarket retailer Iceland has announced it will be moving on from the celebrity mother spokespeople it has previously used to instead harness the power of vloggers who are real mothers. Iceland has partnered with Channel Mum, a network of vlogger parents. These parents will then upload videos of themselves to Channel Mum’s YouTube channel and website as they make meals using Iceland products. Celebrities are no longer the sole option when it comes to hiring a famous face to front a campaign; in recent years we’ve seen bloggers and vloggers rise up to take their place thanks to the rise in popularity of social media. This approach will present the retailer as interested in getting real – rather than manufactured – reactions to its food. This approach has the potential to backfire, but it may also attract skeptical consumers who are looking for brands to be more truthful.

Ethics Provide a Framework For Storytelling While the notion of “corporate transparency” has become something of a cliché in recent years, its ethos is as relevant as ever. Consumers have become cynical toward the claims of manufacturers, retailers and advertisers and acknowledge a lack of information on product labels. Above all, retailers and brands must be truthful and stay true to their stated core values. Stories must align with these core values or they will be viewed with suspicion. Company and product ethics matter to consumers. In fact, about 70 percent of consumers claim to give at least some consideration to a company’s ethics when making purchases, according to Mintel research. Moreover, company ethical behavior has gained importance over the past few years; less than half of consumers said they considered corporate ethical behavior in their purchasing decisions when surveyed in 2012. Somewhat surprisingly, men are significantly more likely than women to say they are often/always influenced by company ethics (29 percent vs. 16 percent). Millennials tend to place more emphasis on ethics than older generations, which supports commonly held beliefs about millennials: 78 percent of millennials at least sometimes consider ethics in their purchasing decisions, compared to 61 percent of baby boomers.

C onsumers are increasingly being romanced by the stories that brands and retailers are telling about product origin, ingredients and inspiration.

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Factors Considered to Determine How Ethical a Company is , U.S., April 2015 “Which of the following factors, if any, do you consider when deciding how ethical a company is?”

Employee treatment Where products are made Environmentally friendly Animal treatment Advertising practices Food transparency Stance on controversial issues Outreach in local community Outreach in U.S. Charitable donations Outreach globally Employees volunteering None of the above Other

48%

34%

33%

31%

27% 27% 27%

22%

18%

17%

13%

9%

16%

2%

Base: 2,000 internet users aged 18+ Source: Lightspeed GMI/Mintel Source: Mintel Reports: The Ethical Consumer – U.S., July 2015

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