The world as we know it is changing. Our population is increasing faster than ever before, technology is revolutionising not only how we live but also how we connect with each other and evolving family structures, roles, and responsibilities are changing the way we work. On the other hand, we also see rising inequality, poverty and environmental pressure that threatens the future stability of our planet.
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These transformational changes are also impacting business and challenging traditional business models that are no longer fit for the future. We have talked about this before but clearly the retail sector is an area that is seeing huge change because of the intrusion of online shopping. Of course, the changes in retail have been going on for decades – in the 1960-70s it was the rise of the supermarket and variety department store. Then we saw the rise of the fast food chain stores that impacted on local food shops and cafes.
It is also true that people increasingly expect business to use its scale, reach and resources to help tackle the most pressing societal issues. They are using their purchasing power to reward businesses who have a clear purpose and are contributing positively to the world.
According to research, sales of sustainable products account for around $500 billion globally and one in three Australians are willing to spend more on products from socially responsible companies. So long as we are not seeing greenwashing from those businesses then it is a sustainable development.
It has also been the case that many of these businesses are niche or social enterprises. But even big business is changing in this space.
Some large enterprises have found that their ‘purpose driven’ brands are growing 30 per cent faster than the rest of their business because they are building meaningful connections with consumers and helping tackle the issues that matter to them.
In short – guess what – consumers – or at least some of them – actually care about a range of social and environmental issues – and they are prepared to pay for it.
The lesson for business in this is – if you have a good story to tell about your product, make sure your customers know about it – chances are they may buy your product more often!
