By Bryan Wassel, Associate Editor
Several recent articles I’ve written have touched on the
importance of corporate responsibility. Shoppers, particularly among younger generations,
increasingly will flock to retailers and brands that support a cause.
The chosen purpose can be social, environmental or political;
it can be a long-term commitment or pop up in reaction to recent news — but the
one unbreakable rule is that the support must
be perceived as authentic. Retailers can’t just claim they stand for a
cause and call it a day; they need to earn customers’ respect, and prove they
care about the issues they support.
“I think there’s a really important question around what
issues should a retailer or any brand engage in,” said Peter Horst, founder of
CMO Inc. in an interview with Retail
TouchPoints. “It should start with one that has a real authentic, genuine
connection to the business. Without that you just look like a cynical bandwagon
jumper, trying to capitalize on some concern. It really doesn’t connect in any
meaningful way, and people will spot that and they don’t like it.”
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Another key element is alignment
with a shopper’s personal values, which is important to 52% of Millennials, 48% of Gen Xers and 35% of Baby Boomers, according to the Evolution
of Retail: The Brand Perception Effect study from Euclid.
A Strong Mission Is
The Backbone Of Authenticity
Ideally, support for a cause relates in some way to the
brand’s identity, whether that’s its history, the way it treats employees and
suppliers, or how its products are sourced and manufactured. Retailers that
tell a story
about their beliefs, such as the reason behind their use of Fair
Trade Certified materials, can use that narrative to draw customers in and make
their products stand out. For instance, The
RealReal has launched
a Sustainability Calculator to help shoppers understand the
environmental benefits of buying consigned items.
When support for a cause is organic to the brand’s
operations, it’s easier to alert shoppers about what the company is doing
without coming across as self-serving, and yes, inauthentic. Companies also can
benefit from a combination of approaches, such as taking a stand on a specific
topic when it affects a long-term passion. Patagonia
has consistently been a strong advocate for outdoor spaces, and when President
Trump signed an executive order that threatened millions of acres of parkland,
the company went on the offensive. The retailer sued the government and changed
its site’s home page to the words “The President Stole Your Land” in large white
text on a black background.
Taking this stand reaffirmed Patagonia’s devotion to
conservation, proving the authenticity of its message. The move also resulted
in substantial media coverage, with outlets including The
New York Times detailing the retailer’s move.
Political Stands Can
Pay Dividends, But Keep Your Shoppers’ Values In Mind
Things can get trickier when retailers weigh in on more
divisive “lightning rod,” issues, such as Black Lives Matter, #MeToo or other
social justice concerns. The current poster child for the benefits of taking an
authentic stand in a way that taps into the current zeitgeist is Nike, which saw
an online sales jump of 31%
between Sept. 2 and Sept. 4, after it named NFL quarterback-turned-activist
Colin Kaepernick as a company spokesman. By Sept. 20, the retailer had sold
out 61% more merchandise
since the Kaepernick ad launched.
However, returning to authenticity, retailers should keep
their customer bases in mind when they decide whether it’s appropriate to take
a stand. While the benefits Nike is seeing are undeniable, the demographics the
retailer serves have different attitudes than the U.S. as a whole, according to
data
from YouGov:
·78%
of recent Nike shoppers appreciate it when a company has a moral message,
compared to 68% among all Americans;
·68%
of Nike shoppers feel brands should be allowed to express how they feel on any
given topic, compared to 57% of all
shoppers; and
·65%
of Nike shoppers like brands that are willing to get involved in social issues,
but just 45% of all U.S. consumers
agree.
As the holidays approach, retailers will have the
opportunity to confront another potentially divisive issue: whether they should
open for Thanksgiving or give their associates the day off. Businesses will
have to weigh the benefits of an extra shopping day against the potential added
loyalty of a labor-friendly decision — but regardless of their choice they must
make sure their response doesn’t come off as pandering.
