By Deepak Mehrotra, Founder of California Design Den
The 2020 pandemic served as a catalyst for conscious consumerism with many buyers becoming even more mindful of the products they bring into their homes. In addition, there was a rise in environmental awareness and renewed cognizance around the impact household items have on the planet. For example, many clothing, bedding and other textiles can contain microplastics that contribute to global pollution and end up in waterways, oceans and drinking water. To reduce plastic waste, shoppers have opted for more eco-friendly solutions such as all-natural materials. As a result of this cultural awareness, the rise in the bedroom linen market continues to increase and is expected to surpass $43.3B by 2031, according to a recent market report by Transparency Market Research.
Today there are many macro-environmental factors that impact the different ways in which consumers are introduced to brands and products – from convenience with direct-to-consumer brands, social influence with online creators, in-store activations and experiences, word-of-mouth from family and friends, among many others. To meet this consumer demand, drive trial and retain customers, many brands have invested in new technologies, R&D activities and fresh business strategies to design new products and maximize environmental impact. Here are three different approaches for brands, specifically those with sustainable missions, to continue to propel innovation and growth within their respective categories:
1. Provide High-Quality Products at Affordable Price Points
Due to many factors including the uncertainty of the economy, fluctuating job market, etc. current consumer purchase habits are heavily dictated by price point. High-quality products will aid in customer retention, however coupled with affordability, products are provided a competitive advantage against others in the category. A brand’s customer base will remain loyal as they continue to invest money into products they find reliable and consistent. As it relates to eco-friendly items, there is an overall conception that they come at a higher price tag due to the use of more premium, raw materials as opposed to cheaper synthetic elements. All-natural, luxury products with competitive pricing will set brands apart within the category, however, it’s important to determine what factors are worth company investment to ultimately keep cost low, such as packaging and marketing, among other resources.
2. Activate a Customer-Centric Business Model
As a result of inflation, consumers are reducing purchases on non-essential goods. However, as people are more mindful of their health and wellbeing, there is opportunity for sustainable brands to continue driving sales by adopting a customer-centric model. A positive, seamless shopping experience will also inspire retention, whether that be offering unique product portfolios, ease of transactions, etc. There are also different tactics that garner new customer bases as well including innovative branded campaigns, consumer events, among other activations. This type of marketing mix can help build consumer awareness, but these brands must allot ample budgets in order to activate at an impactful level. On the other hand, there is also an opportunity for companies to create a more personalized experience for their customer and respond to consumer feedback by strategically investing in new products or business processes that resonate with their audiences. While it may seem simple, it is effective way to communicate with your consumer. Garnering accolades, customer reviews and product certifications will help prospective consumers identify key product attributes such as efficacy, credibility, quality and more. This type of recognition encourages new customers to purchase your product while also further demonstrating the brand’s commitment to providing existing consumers the highest quality experience.
3. Innovating Based on Trend Forecasting
As the focus on physical health and wellbeing continues to be top of mind for consumers, this demand will also drive future product development. With new trends emerging daily, it’s important for brands to remain nimble and design products that are new, innovative and adhering to what their consumers value. For example, the better-for-you trend now spans across various industries including food, beverage, fitness, home and more, with consumers more likely to purchase from brands that appeal to these values and beliefs. Companies are dedicated to tackling global environmental issues by creatively innovating products and solutions that are designed to reduce waste, minimize carbon emissions, etc. This type of sustainable innovation goes beyond products and services but should also be embedded within core business strategies now that this type of thinking has evolved into a holistic movement.
The voice of the consumer influences many brand strategies, especially as it relates to product innovation. For these companies to retain customers, while also attract new audiences, brands need to keep a pulse on what is trending in the market and understand what their customers are looking for in products that they are purchasing to further drive their business forward.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.