Clear as mud
Welcome to the quest for transparency
As people streamline their lives and refocus priorities on sustainability, their expectations of brands have undergone a profound transformation. No longer are we content to simply know what's inside a product; we desire to understand the ethos of the company that made it.
This is not a vague, idealistic sentiment; it's a quantifiable demand. A substantial 54% of consumers articulate a clear expectation: they want their chosen brands to be torchbearers of diversity and inclusion, both within the corporate structure and in the broader societal context. This isn't just corporate social responsibility; it's corporate social necessity. And in a society awash with data but starved for meaning, clarity in communication isn't just a courtesy; it's a commandment.
But let's delve deeper. The concept of corporate responsibility has branched out. Take packaging, for instance. Once a functional afterthought, it has evolved into a canvas where a brand's commitment to sustainability is either boldly illustrated or conspicuously absent. Whether it's tips on minimising waste or seals of approval for ethical practices, the packaging is now a manifesto of intent, not merely a wrapper to be discarded.
In the lexicon of today's consumer, 'local' has also transcended its status as a buzzword to become a binding pledge — a promise to enrich the communities that feed the corporate ecosystem. And let's not sideline the operational aspects. Reducing waste in the supply chain isn't just a cost-cutting measure; it's a litmus test of a brand's ethical compass.
In a marketplace where every swipe of the credit card is a vote cast in the ballot box of societal values, coming up short isn't an option. Brands aren't just expected to meet these multifaceted expectations; they're expected to exceed them, to pioneer new norms that will shape the industry's ethical and operational landscapes. For this to happen, it will be necessary to educate Latin American consumers on what matters such as carbon neutrality could mean now and in the future.
There is a long way to go for people to understand that what does not seem very tangible today should be entry-level criteria for corporate citizenship. Industry communication should go from there.
They also need to understand the broader movement towards transparency and provenance can have tangible benefits. We already know consumers, armed with an arsenal of information, are seeking more than labels; they're seeking narratives. They want to know the origin stories of their chosen products, whether it's a journey of ethical sourcing or a tale of sustainable production. With even more information becoming available, we should expect this movement to accelerate.
We know this because our respondents across the region are asking for leadership, for the kind of groundbreaking innovation that doesn't just respond to their expectations but anticipates them. It's a tall order, but in the face of our planet's existential challenges, can we afford to aim for anything less?
After delving into the dynamics of shifting responsibilities, the profound transformation in consumer expectations, and the non-negotiable demand for transparency, it's clear that standing on the sidelines isn't an option. So here's a simplified set of actions to get things started!
Eco-Actives and Eco-Considerers aren't just a demographic; they're a financial force. Tailor your strategies to tap into their $46.2 billion FMCG spending.
Consumers who prioritise the planet are also meticulous shoppers. Simplify their journey through bundling and user-friendly platforms.
Obstacles like hard-to-find products aren't just logistical challenges; they erode brand trust. Prioritise accessibility in your store layouts and online platforms.
Trust isn't just a value; it's essential for brand loyalty. Build and maintain it by aligning your brand with consumer values on sustainability.
Packaging is more than just a wrapper; it's a statement of brand values. Adopt sustainable and informative packaging to meet rising consumer expectations.
The concern over pricing isn't just an economic barrier; it's a call to innovate. Offer scaled pricing strategies to make sustainability accessible to all.
Consumers aren't just scanning labels; they're seeking narratives. Adopt full transparency in sourcing and production to build trust and loyalty.
Brands across the spectrum, especially in the FMCG sector, find themselves at a crossroads. On one hand, they have the unique ability to influence mass behaviour and drive real change; on the other, they grapple with the challenges of implementing sustainable practices while maintaining profitability.
Our recent survey reveals an intriguing paradox: when asked to list brands that genuinely care for the environment, many respondents draw a blank or offer hesitant answers. This isn't just a gap in perception; it's a glaring opportunity. Brands have a remarkable, yet mostly untapped, potential to not only elevate their environmental initiatives but also to carve a niche in the public consciousness as stewards of the planet.
