The Retailer SUMMER 16_v7

customer focus

“Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share, but build loyalty among the power- spending Millennials of tomorrow, too.”

what are these brands trying to communicate? If this is not aligned with the origin sourcing and specification of the product, we must ask if this is misleading to customers.” Authentic to the Core A stand-out example of a brand which places ethics and localism at its core is the Co-op. Its recent rebrand emphasised a return to its traditional values, where community comes before profits. Signalling a renewed commitment to a proud ethical heritage, the Co-op reinstated its 1968 design ‘clover leaf’ logo, “because it links to a time when people understood how they could be co-owners of their Co-op and how a strong Co-op could help to create strong communities.” Outside of retail, at NFU Mutual we recognise customers attribute value to the fact we operate from hundreds of rural community branches. These roots in the community are often cited as a major contributor to the customer service awards the business has won and are also a definitive differentiator to online-only competitors. The future? Appetite for the authentic is growing among consumers of the future. Global trend analysts Nielsen surveyed 30,000 people in 60 countries and found 66% of respondents would pay more for sustainable goods - up from 55% in 2014 and 50% in 2013. Millennials (aged 21 to 34) and Generation Z (under 20) were among those increasingly willing to pay extra to companies committed to sustainability. Grace Farraj, public development and sustainability expert at Nielsen, concluded: “Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share, but build loyalty among the power-spending Millennials of tomorrow, too.”

FRANK WOODS // frank_woods@nfumutual.co.uk // www.nfumutual.co.uk

retailer | summer 2016 | 11