Is it profitable to pursue sustainability?
Research on actual consumer purchasing behavior shows that sustainable products are growing at twice the rate of traditional products, an average of 28% higher, and across all demographic groups.
In the past, brands typically formulated marketing strategies based on product functionality and market differentiation, opting to communicate environmental issues with consumers through the lens of social responsibility to enhance their brand image and boost consumer favorability. Perhaps due to uncertainty about the market's direct willingness to purchase green products, few brands have prioritized green and sustainable concepts as their primary communication priorities.
When companies discuss risk management, they often mention the Black Swan effect. New York University professor Nassim Nicholas Taleb published the book "The Black Swan Effect" in 2007, which describes an event with a very low probability of occurrence, which is difficult to predict, and has a high impact. When it actually occurs, people often develop the benefit of hindsight and attempt to rationalize its occurrence. According to a survey by East Online, many emerging brands are exerting a powerful influence that is shaking up established industry structures, even surpassing many established mainstream brands. Many Black Swan brand owners are trying to use green as a brand value proposition to attract consumers who share green values and support their products.
The 17 Sustainable Development Goals are by no means a reward card for businesses
With the emergence of the United Nations Sustainable Development Goals, many companies have begun exploring potential projects within the 17 goals. However, given limited resources, companies should focus on issues relevant to their core business, integrating sustainability into their brand strategies and engaging in deep dialogue with society. This has become a crucial developmental priority for business owners. For example, British mayonnaise brand Hellmann’s launched The Imperfect Bottle campaign to address food waste, encouraging consumers to purchase products with minor cosmetic flaws to reduce waste. Furthermore, they invited renowned chefs and food experts to demonstrate how to create delicious dishes from leftovers. This initiative demonstrates that the company is implementing SDG 12, Responsible Consumption and Production, while also operating its business.
After industrialization, the long-standing development of the brown economy not only failed to effectively address the problem of social marginalization, but also led to rapid resource depletion. In contrast, the green economy emphasizes low carbon, resource efficiency, and social inclusiveness. While promoting economic growth, it also reduces the negative impact on the environment. It also pays attention to social equity issues and emphasizes improving the well-being of modern people while not compromising the well-being of future generations. This is sustainable development.
Triggering a sense of resonance
But can products that simply emphasize sustainability and green claims really get consumers to buy them? Of course not! Consumers won't buy sustainable but unpalatable chocolate cookies, or detergents that don't clean effectively. Brands should balance product quality, combine sustainability claims with brand core values, and finally connect to the interests that consumers care about, using resonant sustainability claims to attract consumers and make them resonate with your products. Resonant sustainability claims focus on what consumers can get from them. While conveying scientific facts, brands can greatly enhance the appeal of products by incorporating issues that are close to people's lives and that they care about. For example, instead of explaining that a product is carbon neutral, it is better to extend it to "reducing the impact of climate change through carbon neutrality" or "carbon neutrality makes the air you breathe cleaner." If you want to express the sourcing of local ingredients, we can extend the resonance to "collaborating with local small farmers to maintain the health of the land and create a rich and diverse food system."
Conclusion
Consumers are increasingly concerned about sustainability issues. The government has moved from restricting the use of single-use plastic straws to encouraging people to bring their own reusable cups. Starting next year (2025), hotels and accommodations will no longer be required to proactively provide disposable amenity items. These once-commonplace daily routines are gradually changing. Protecting the planet and its environment is no longer the sole domain of experts and scholars. How companies invest in ESG and communicate these hard science to the public, attracting consumers through sustainability initiatives, is crucial to capturing the green market.
References:
*Hong Peijun. (2019, April 20). Ogilvy's Perspective: Does "Green" Help Brands' Business? CommonWealth Magazine. https://www.cw.com.tw/article/5094611
*Make Your Sustainable Products Impress People (Yan Jiyu, Trans.). (2023, November 7). Harvard Business Review. https://www.hbrtaiwan.com/article/22525/research-how-to-effectively-market-green-products
*Gao Yifan. (2023, July 10). Why is there an Ogilvy Hengchun branch? How can companies integrate ESG into their branding and business processes, rather than just focusing on advertising? CSR@World https://csr.cw.com.tw/article/43253
*Taiwan’s Green Economy Development. (2022, October 15). Taiwan Youth Climate Alliance. https://www.twycc.org.tw/blog/p-1/taiwan-green-economy-development-841
By: Chen Wenli, Consultant, Integrated Marketing Group, Sustainable Design and Marketing Department, Plastics Industry Technology Development Center
