{"id":3121,"date":"2022-07-06T01:37:27","date_gmt":"2022-07-06T05:37:27","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2022\/07\/06\/why-resilient-product-life-cycles-deepen-consumer-loyalty\/"},"modified":"2022-07-06T01:37:27","modified_gmt":"2022-07-06T05:37:27","slug":"why-resilient-product-life-cycles-deepen-consumer-loyalty","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/why-resilient-product-life-cycles-deepen-consumer-loyalty\/3121\/","title":{"rendered":"Why Resilient Product Life Cycles Deepen Consumer Loyalty"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By James Fox, Associate Director, Canvas8<\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Consumer loyalty is on the decline. <a href=\"https:\/\/www.nielsen.com\/eu\/en\/press-releases\/2019\/consumer-disloyalty-is-the-new-normal\/\">According to research from Nielsen, just 8%<\/a> of people consider themselves firmly loyal to brands. Nonetheless, brand advocacy matters \u2013 <a href=\"https:\/\/hbr.org\/2019\/10\/where-net-promoter-score-goes-wrong\">52% of consumers according to Harvard Business Review<\/a> who have actively discouraged others from using a brand say they\u2019ve also actively recommended brands. This is especially relevant among younger consumers &#8211; <a href=\"https:\/\/www.glossy.co\/sponsored\/to-understand-the-future-of-retail-watch-gen-z\" aria-label=\"82 percent, click to read on glossy site\">82%<\/a> of Gen Zers say they trust recommendations from friends and family more than any other source when deciding what to buy. So, with budgets tightening and social media leaving them more open to scrutiny, how can brands build and strengthen loyalty, especially with younger shoppers?<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">In an effort to understand this, we interviewed Dr. Charlie Ranscombe, an expert in product design in the field of aesthetics and brand identity. \u201cYounger generations aren\u2019t sampling an experience to find the easiest or quickest solution. They&#8217;re sampling it to try and see how that brand aligns with their values and fits in with their pre-existing system of processing \u2018is this cool? [\u2026] They don&#8217;t want to subscribe to something that, in three months\u2019 time, they find out is completely unethical and problematic\u2026\u201d <a href=\"https:\/\/www.canvas8.com\/library\/reports\/2021\/07\/05\/aussie-human-brands\" aria-label=\"he explains, click to read on canvas 8 site\">he explains<\/a>. Ranscombe also argues that people <a href=\"https:\/\/www.canvas8.com\/library\/reports\/2021\/05\/04\/diy-generation-movement\" aria-label=\"value longevity, clith to read on canvas eight site\">value longevity<\/a> and shared community over perfection. \u201cThe way that we consume mass-market products hasn&#8217;t changed a great deal since the 1950s. Make more stuff, consume more stuff, show your status or your success by getting an incrementally better version of stuff,\u201d he says. \u201cYounger generations have just figured out more quickly that it\u2019s not a sustainable way to live.\u201d In fact, <a href=\"https:\/\/www.thredup.com\/resale\/#resale-industry\" aria-label=\"45 percent, click to read on thred up\">45%<\/a> of Gen Yers and Zers in the US claim they refuse to buy from non-sustainable brands and retailers.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The cost of living crisis is a worldwide phenomenon. In the UK, inflation hit <a href=\"https:\/\/www.theguardian.com\/business\/2022\/jun\/01\/food-inflation-drives-highest-uk-shop-prices-rise-in-more-than-a-decade\" aria-label=\"9.1 percent, click to read on the guardian\">9.1%<\/a> in May 2022 and in the US it\u2019s as high as <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-21\/supply-issues-account-for-half-of-us-inflation-rise-study-shows\" aria-label=\"8.5%, click to read on bloomberg\">8.5%<\/a>. From soaring prices on cheap food options like budget pasta increasing by as much as <a href=\"https:\/\/www.theguardian.com\/business\/2022\/may\/30\/pasta-bread-and-crisps-among-biggest-uk-food-price-increases\" aria-label=\"50 percent, click to read on guardian\">50%<\/a> to <a href=\"https:\/\/www.usatoday.com\/story\/money\/2022\/05\/17\/why-gas-prices-continue-rise-record\/9798086002\/\" aria-label=\"record high, click to read on usa today\">record high<\/a> fuel prices, consumers are feeling the pinch across the board. As prices continue to go up, people are clearly going to be looking for ways to budget but brands have to avoid cutting costs at the expense of real values.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The war in Ukraine, economic uncertainty and the ongoing impact of coronavirus do present immediate problems but climate change is just as much of a threat to the world, and ignoring environmental priorities could have significant long-term implications for brands. Globally, <a href=\"https:\/\/www.weforum.org\/agenda\/2020\/09\/sustainable-equitable-change-post-coronavirus-survey\/\" aria-label=\"86 percent of people, click to read on we forum\">86% of people<\/a> want to see a more sustainable world post-pandemic. And consumers are becoming wise to the dangers of low-cost, high-volume production. For instance, <a href=\"https:\/\/www.canvas8.com\/library\/reports\/2021\/03\/08\/eco-beers\" aria-label=\"82 percent, click to read on canvas eight\">82%<\/a> of Britons say they\u2019d be more likely to use a company that makes an effort to mitigate waste or recycle and <a href=\"https:\/\/www.thefashionlaw.com\/as-companies-add-emissions-labels-to-their-products-is-this-helpful-or-the-latest-in-greenwashing\/\" aria-label=\"4 in 5, click to read on the fashion law\">4 in 5<\/a> Americans believe companies have an obligation to disclose the environmental impact of their operations. Even with financial pressures, eco credentials matter. We found that 55% of low income earners in the UK and 44% in the US say that environmental impact matters when choosing which brands they buy from.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">At the same time, people are becoming increasingly cynical about greenwashing tactics, and are looking for brands they trust to give them clear, accurate information. In the UK, <a href=\"https:\/\/www.canvas8.com\/library\/behaviour\/sector-behaviour\/2020\/citizenship\/clouded-values\">83%<\/a> people say they feel misled by green and sustainability buzzwords, and <a href=\"https:\/\/www.forrester.com\/blogs\/empowered-consumers-call-for-sustainability-transformation\/\" aria-label=\"68 percent click to read on forrester\">68%<\/a> of consumers in the US say that they plan to increase efforts to identify brands who are reducing their environmental impact. So how can brands align themselves with eco-cynics, and make real change? By making sustainability an integral part of their business, demonstrating to consumers they aren\u2019t just bandwagon jumping and by taking responsibility for the entire lifecycle of their products.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Tapping into this demand, smaller brands like Singapore\u2019s <a href=\"https:\/\/www.crust-group.com\/\">Crust Brewery<\/a> and Finland\u2019s <a href=\"https:\/\/www.nordicspirits.com\/koskenkorva\/\">Koskenkorva Vodka<\/a> have been built with sustainability as part of their foundation. But established brands can make meaningful changes even if sustainability is a relatively new part of their business. For instance,\u00a0 <a href=\"https:\/\/www.canvas8.com\/library\/signals\/2019\/04\/08\/patagonia-finance-bans-vest\" aria-label=\"patagonia, click to read on canvas eight\">Patagonia<\/a>\u2019s efforts to educate consumers on garment care and eco-friendliness and their transparency about unavoidable carbon impact. And with an eye on extending product lifecycles and the circular economy, Nike has launched <a href=\"https:\/\/www.chargedretail.co.uk\/2021\/04\/13\/nike-to-start-selling-used-and-refurbished-shoes-at-a-discount\/\" aria-label=\"nike refurbished click to read on charged retail site\">Nike Refurbished<\/a> for lightly-used returns, Miu Miu unveiled <a href=\"https:\/\/wwd.com\/fashion-news\/fashion-scoops\/miu-miu-launches-upcycled-collection-1234631819\/\" aria-label=\"upcycled by miu miu click to read on wwd dot com site\">Upcycled by Miu Miu<\/a> featuring vintage dresses that have been remodelled for modern buyers, and <a href=\"https:\/\/www.vogue.co.uk\/fashion\/article\/gucci-realreal-partnership\">Gucci<\/a> has partnered with the resale site RealReal.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">As people become more aware of the consequences of their purchasing behaviours, they&#8217;re looking to drastically reduce their carbon footprints and stick with brands that help them do it. In the UK, spending on ethical products is close to reaching <a href=\"https:\/\/assets.ctfassets.net\/5ywmq66472jr\/3kwPOTPk1xuAUGpJmyLEdM\/1249d071ea404f526041af2fdd1e86f8\/COP58366_Ethical_Consumerism_Report_Final.pdf\" aria-label=\"122 billion pounds, click to download pdf report\">\u00a3122 billion<\/a> and <a href=\"https:\/\/www.barrons.com\/articles\/two-thirds-of-north-americans-prefer-eco-friendly-brands-study-finds-51578661728\" aria-label=\"70 percent click to read on barrons site\">70%<\/a> of North Americans already try to shop from eco-friendly brands. Meanwhile, notoriously unsustainable fast fashion giants like Boohoo and ASOS are <a href=\"https:\/\/www.sharesmagazine.co.uk\/news\/shares\/asos-and-boohoo-shares-cut-to-ribbons-as-fast-fashion-retailers-disappoint\" aria-label=\"recording declines click to read on shares magazine\">recording declines<\/a> in sales and seeing their share prices plummet as people turn their backs on throwaway culture. Looking ahead, it\u2019s more important than ever for brands to build resilient lifecycles for their products if they want to deepen consumer loyalty. And if brands take action on sustainability even through an economically rocky period, they will be rewarded by the ever-increasing number of ethical consumers. After all, green shoppers are projected to make up over <a href=\"https:\/\/www.gfk.com\/blog\/how-fmcg-brands-can-capitalize-on-soaring-eco-consumer-spending-power\" aria-label=\"half of the global population click to read on gfk site\">half of the global population<\/a> before the end of the decade.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As people become more aware of the consequences of their purchasing behaviours, they&#8217;re looking to drastically reduce their carbon footprints and stick with brands that help them do it.<\/p>\n","protected":false},"author":7,"featured_media":3122,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[4],"topics":[2],"class_list":["post-3121","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-culture","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why Resilient Product Life Cycles Deepen Consumer Loyalty | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advertisingweek.com\/aw360\/news\/why-resilient-product-life-cycles-deepen-consumer-loyalty\/3121\/\" \/>\n<meta property=\"og:locale\" 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