Green brands get the green light

Fair trade, carbon footprint, organic, holistic, GM-free. Green brands. It’s the trend du jour, and it doesn’t look likely to go away. But tread carefully, advises David Blyth

Fair trade, carbon footprint, organic, holistic, GM-free. A myriad terms pepper recycled papers on the Green Revolution and are enough to dazzle even the best intentioned. What was once the preserve of Bohemian bean-eating flea market shoppers found around Green Market Square is now becoming more mainstream as we enter an increasingly green global market. Green no longer refers to naïve but to the well-informed environmentally-conscious consumer.

There is undoubtedly a growing trend towards rising consumer consciousness in the area of green and - albeit a season behind - the seeds have started to take root in local soil. BP is a much publicised example of an international brand turning over a new leaf and espousing its environmental credentials in the global spotlight, probably spurring on others to follow suit.

South Africa has been notably slow on the uptake in comparison to its first world counterparts and the reasons are many; the severity of our more pressing socio-economic issues cannot be understated. However, the lean towards green is ignored at a local brand’s own peril as South Africa becomes all the more integrated into the world economy - both in terms of global organisations importing their brands and beliefs to our shores and our brands exporting onto shelves of more demanding markets. There is both a rise in consumer consciousness - and conscienceness - as these trends become more mainstream.

It’s the trend du jour, but it doesn’t look like likely to go away.

“Fair trade, carbon footprint, organic, holistic, GM-free. Green brands. It’s the trend du jour, but it doesn’t look like likely to go away. The expectations are already there that your brand must wear its green stripes on its sleeve. But what is it, exactly? The concept of green is all still very grey. Here’s how to go green with care.”

South Africa: Are you ready?

The expectations are already there that your brand must wear its green stripes on its sleeve, and in the face of rising demand and expectations, these green-savvy consumers are turning their gaze towards your brand.

But what is it, exactly? The concept of green is all still very grey.

Does all-natural mean 100% natural? How organic are your "organic" tomatoes, really? Is it better to buy organic tomatoes from Mexico or the locally produced regular variety that have incurred far fewer carbon miles? Just how organic is Unilever’s Organics shampoo? (Not at all, unless you count the mere inclusion of essential oils in its soapy ingredient).

The simple inclusion of words such as "pure" and "natural" in a product’s name or description lend themselves wholesome value associations that don’t necessarily have wholesome origins, only muddying the waters further.

Even the best intentioned consumer has a hard time discerning their organics from their apples.

Despite the growing development of the green market, an industry-wide and legally-binding definition of what constitutes "natural" is still lacking, confusing both the industry and consumer. This is not helped by manufacturers exploiting the legislative loopholes and "green washing"; many products champion natural credentials even though the percentage of natural ingredients is in fact negligible or unconfirmed.

Who can you really trust?

Sowing the seeds of change:

Woolworths, perhaps endowed with a foresight inherited from its British sister Marks & Spencer, has well-developed equity in the area of wholesome values and environmentally-friendly practices as one of the first retailers in South Africa to introduce an organic range to their shelves and hormone-free meat and dairy products. This retailer deserves further kudos for recently indicating a comprehensive strategy that it aims to implement by 2012 to reduce its carbon footprint by focusing on organic production, extending its organic range in food and clothing, conservation, recycling and improved packaging.

Massmart has simultaneously issued statements about its new environmental initiatives, but admits that it’s not really sure where to begin in the absence of an official green blueprint - and it isn’t the only one. But it’s importantly recognising the need to take the first step to be leaps ahead of its competitors when legislation is put in place.

Why bother?

The virtues of being virtuous in an ever increasingly competitive market are many. Green isn’t just good business practice, it makes rands and sense.

• Reputational buffer:

  When things do go wrong, your positive green credentials can help shield you from the fall-out and forgiveness is that much more forthcoming. Eskom might’ve received less bad press over the recent power cuts had it made its real initiatives in the area of conservation and eco-power more visible to its public, missing a strategic opportunity to position the blackouts as "green-outs".

• Survival:

  While a poor social or environmental reputation may not yet be enough to prejudice the average consumer’s shopping list, it leaves many brands vulnerable to competitors who have invested in a more responsible image. In fact, it may not be long before perceptions of "responsible", ethical and green become hygiene factors, essential for your brand simply to survive in the mainstream.

• rust in ‘natural’:

  In the face of growing global scepticism of large corporates, following a number of health scares and corruption scandals, there is a growing perception that organic, natural and ethical products are more trustworthy. And in the absence of industry-wide accreditation, this is your green endorsement or stamp of approval, both enhancing your product’s visibility on the green shelf as well as your credibility.

• New markets:

  There is a growing consciousness and conscienceness among all consumers across a broad demographic range - including yours - so by responding to their needs and tastes, you’re staying relevant to them while broadening your reach to potential new market sets.

But a brand is only as good as a company’s reputation of promise and delivery. And your brand needs to deliver on its promises. While green may be the new black and your brand may be tempted to climb aboard the band wagon, are you ready? Is your commitment to go green an authentic statement of your intention? Can you deliver?

It takes a lot of groundwork to build that credibility, beginning with planting the seeds of culture. It needs to be ingrained and inculcated into every employee’s mind through a carefully conceived strategy. This needs to be communicated from the values contained in your strategy to external communication channels. There finally needs to be actual delivery on intent, and a team in place to manage and market this to make it sustainable.

Think carefully before picking up the green baton prematurely. It’s easy and appealing, but it won’t be genuine and authentic until you lay the right foundations in place.

Authenticity and trust

Authenticity needs to be built into the very fibre of your company and brand. This is not an overnight exercise in repackaging yourself in brown paper and recycled materials.

The current generation of our CEOs have not been taught how to handle green issues and sustainability. Until recently, these have not been main boardroom concerns and these practices are only now making their way into memos on marketing practices. Green needs to be linked back to the strategy and cultural ethics of an organisation. It’s not just about adding an appendix to your mission statement or publishing a sustainability report as an obligatory legislative inclusion in your annual report. It means how understanding the impact you have as an organisation and building that opportunity into your strategy, rather than being opportunistic.

And your internal processes need to reflect this. There is a mindset that needs to be slowly and sustainably built into the organisational culture. This needs to be completed with thorough follow-through - communicating why the company has gone this route and how, and be consistent in your communication.

Going green can’t just be a smokescreen

Before you jump on the band wagon, carefully consider how to approach at it from a green perspective. Use a natural positioning to develop a unique proposition. This unique and distinctive feature needs to be crystal clear and help you carve out a niche in an increasingly crowded market. Ethical practices such as not testing on animals are now almost expected by the market. Therefore you need to look beyond what is now common-place and look at your use of packaging, carbon emissions, treatment of staff and ethical behaviour.

The easiest place to start is with what you’ve got. Look at your products and services.

1. Product attributes:

   For example, can any of your product ingredients be modified to be more environmentally friendly or sourced from somewhere else? Starbucks, an early pioneer of the Fairtrade movement, endeared itself to its consumer base who are prepared to pay a premium because of the coffee producer’s ethical sourcing policies.

2. Product benefits:

   Are there any that can be emphasised, and are there any linkages to a green theme? Perhaps use of your product can enhance health and wellbeing or is more environmentally considerate. Be careful not to use this as a promise unless it is relevant.

3. Values:

   Lastly, look for value attachments that will further your consumers’ green beliefs, such as feeling like a better globally responsible citizen by supporting organisations of the same approach.

Here are some further guidelines to add to your plan in shaping up for the green shelf:

1. Educate and empower:

   Research shows that the more educated consumer - not necessarily more affluent - is the likely buyer of green products. As we’ve seen, the green market is a confusing place for a well-meaning but under-informed consumer. There is great opportunity in educating - and thereby empowering - your customer about ethical consumerism by providing accessible and relevant information. And thereby nurturing, growing and creating a new market.

2. Transparency:

   In a climate of mistrust and scepticism, offering transparency in your business practices and socially responsible behaviour will support your credibility and trustworthiness in the long run. Make verifiable claims about being eco-friendly and what it means to you, and ensure that your claims can be substantiated. Else the truth will out. Use accreditation and labeling schemes to endorse your product, reassuring customers of your product’s provenance. Proudly South African is one that indicates a locally sourced good, not imported at cost to both the economy and the environment.

3. Price:

   Price-sensitivity in South Africa is a major factor. To overcome this limitation, organisations will need to tap into South Africa’s culture of inventiveness to come up with ways of producing an augmented product that meets the green criteria without sacrificing quality. It also needs to be affordable, on a par with other prices or at best undercutting those. This remains a challenge.

4. Cross-over opportunities:

   Use your brand to develop cross-over opportunities. Using successful brand extension across a number of segments could be useful. Don’t overlook your existing brand equity; capitalise on the trust your consumer already has in your brand. Target parents who are more easily persuaded to purchase green products for their bouncing offspring.

5. Shelf stand-out:

   As natural goes mainstream, green goods now intermingle happily on shelves with regular products, no longer confined to hippy health stores and the dedicated “health” aisle. Seek out opportunities to differentiate in look and feel while wearing your green heart on your (packaging) sleeve.
   
   More than skin deep, packaging is also a key opportunity to tell your story and create a belief and trust in your product. And new technological advances are breathing new life into packaging.
   
   Biodegradable packaging is naturally a popular choice in this category and refillable packaging can literally give your brand a second life in some instances. Bio-plastics, TerraSkin, corn-based materials, bamboo and recycled paper are just some of the materials that are currently enjoying the limelight for their green credentials. They also allow you the opportunity to differentiate from your plastic-wrapped peers while being at the forefront of the green revolution.

6. Connectivity:

   Tap into the connectivity mega-trend: Resonate with themes of belonging to a wider community through ethical consumerism. Contemporary consumers are using their purchasing to express wider political and social concerns. People regard the brands they invest in as a reflection of themselves, Buying ethically is often motivated by a consumer seeking approval and often inadvertently become brand ambassadors due to the high involvement ethical purchases necessitate.

The revolution is already here: In May, Johannesburg launched its first Green Drinks cocktail party at Melrose Arch, encouraging local greenies to meet and mingle.

Change now

While South Africa may have lagged behind to date, brands are quickly pulling up their organic cotton socks and mobilising (renewable) resources behind going green. Brands at the forefront of producing and communicating green can benefit immediately and those that take advantage now will be winners in the medium term. Nedbank has owned the green space in the financial services sector for a long time, supporting WWF and conservation initiatives, and so it has a head start in this area when it wants to start effecting further green initiatives.

Why wait for a competitor to turn the market on its head? Be the first to get it right and be the instigator of change that will challenge the rest of the market to follow.

About the author

David Blyth is MD of The Brand Union, South Africa. In his prior role as Strategy Director, he worked on the delivery of brand positioning, architecture and employee engagement projects across a blue-chip client base in Africa and the Middle East. David is a keen green advocate with an interest in developing South African brands’ awareness of their ecological impact and reputation on an international stage.