Ethical Retail and Aligning Your Values with Those of the Customer
The effects of manmade climate change are becoming impossible to ignore – even if some corporations and governments are having a really good go – and customers are increasingly flocking to brands which can demonstrate their green credentials.
This type of ethical consumerism isn’t only restricted to issues associated with the environment, however. Today’s customer is also far more keenly aware of issues related to manufacturing processes which exploit people or animals and will actively avoid brands which engage in these practices or remain ambiguous on the topic.
This is creating an industry where organizations in the retail space need to understand the values and ethics of their audience and ensure their own values and brand identity are aligned with them.
Customers are savvier than ever when it comes to these factors and companies need to step up and meet their expectations in this regard.
Ethical Retail
Stats for the US are hard to find, but the most recent figures from the UK – which has very similar shopping habits when compared to here – saw spending on ethical products and investments soar past £100 billion for the first time ever.
This has been attributed to the extreme climate related weather events being seen around the globe and the fallout of the global COVID-19 crisis. These issues have caused customers to consider their own impact on the planet more carefully – especially when it appears world leaders are hesitant to take the necessary steps to address them – and have been increasingly seeking plant-based foods, second-hand clothes and furniture, cruelty free products, and greener gadgets.
There are a few facts we know about this trend towards ethical consumerism. We know that customer prefer products which are transparent about their green and ethical credentials. We also know that millennials and GenZers are willing to pay more for a products if the producer and retailer of it has values and an ethical position which aligns with their own. A notable example of this is the so-called vegan tax – where plant-based products tend to be more expensive than their animal product equivalents. However, those choosing to follow a cruelty free lifestyle are willing to pay a little extra for the products which align with their own worldview.
Etiko
One fitting example of a brand making ethical retail part of its DNA is Australian clothing brand, Etiko.
From the company’s tagline, which add "wear no evil," to the famous three wise monkeys slogan, "see no evil, hear no evil, speak no evil," to its strong focus on ethical sourcing, such as by only using plant-based and Fair-Trade materials in its clothing products, Etiko makes sure its brand identity and ethical standpoint is woven tightly through its entire operation.
"I found that, no matter how hard I tried, I couldn’t buy things like sports balls, clothing, and footwear that I could be 100% confident hadn’t been made by a child or some poor worker being ripped off in a developing country," said Etiko Founder and Director, Nick Savaidis. "Sweatshops, corporate greed, globalization, call it what you want. I knew that it sucked, and it was time for an alternative."
Becoming an ethical brand cannot be simply a marketing ploy or the modern customer will see right through it. Brands which engage in performative displays of ethical branding such as greenwashing or changing their social media profile picture to a rainbow during Pride month, but don’t actually engage with LGBT+ issues during the other eleven, will be called out for profiting off these causes.
The responsibility for ethical retail cannot be placed entirely on the shoulders of customers – brands need to do their part. Many people may be willing to pay more for an ethically produced product, but there are still significant numbers of customers who are forced to opt for the cheaper option due to their socioeconomic status.
Brands need to lead the way.
The more retailers which prioritize ethical products the cheaper those products will be for the customer. This means more customers than ever will be able to afford to buy ethically produced products which will be better for everyone. Customers get to align with brands which share their worldview, retailers attract more business, and the planet and its people and animals suffer less.
Final Thoughts
Ethical retail is only going to grow in popularity. As more GenZers enter the workforce and bring their spending power to the retail business, those brands which don’t align with their worldview are likely to be left behind.
Most of all, ethical retail must be sincere and born from a genuine desire to make the world a better place for everyone.
Brand identity and values are set to be part of the conversation at Future Stores Seattle 2022, taking place in July at The Sheraton, Seattle.
Download the agenda today for more information and insights.