As Ireland faces a worsening cost of living crisis, there is an opportunity for brands to build trust by openly communicating their sustainability record and by helping consumers make informed decisions.

Think of a transformative marketing slogan. Which comes to mind?

‘Just Do It’ by Nike and ‘Think Different’ by Apple are a few you may think of.  Simple, yet effective at conveying a powerful message.

Another powerful, yet perhaps less well-known is Patagonia’s 2011 Black Friday ‘Don’t Buy This Jacket’ campaign. The message was clear.  Think about what you buy before you buy it and try to reduce your usage.  REDUCE your usage – not increase. The key to this message was the brand’s leadership, authenticity, and transparency in trying to raise awareness on purchasing decisions in relation to one’s social and environmental impact.

Consumers desire brand leadership on sustainability

RED C’s latest Consumer Sustainability Monitor shows that in Ireland today, consumers crave the sort of leadership and authenticity that brands like Patagonia represent and ultimately want brands to lead them in helping them live more sustainably.  7 in 10 expect brands to lead on helping them be sustainable, with consumers unwavering in this belief over the past 2 years.

This next part is right up Patagonia’s alley – 4 in 5 agree they would feel greater loyalty to a brand that promotes guidance on how to fix products and make them last longer.  This is a core offering from Patagonia, but the brand takes it one step further.  ‘If your product wears out, send it to us and we will repair it for free’.  The brand offers premium, quality products, while also portraying value and providing consumers with the feeling they are reducing their environmental impact.

This type of approach especially resonates amongst young people aged 18-34, with this group more likely (+12% vs total) to prefer to buy from brands that are transparent about their environmental and social impact.  On top of this, 18-34-year-olds are more willing (+14% vs total) to pay more for products or services from brands that demonstrate strong sustainability practices. Again – create value and positive societal contribution through support of a brand with strong sustainability credentials.

The challenge here is in framing the product or service in an authentic and transparent way that is in keeping with the brand’s core identity, while also demonstrating the value in doing so not just for oneself, but for the planet too. This is especially important during trying economic times, which is exactly where we find ourselves in Ireland at present.

Held back by cost of living and uncertainty over sustainability record of brands

One of the key challenges brands will face in Ireland in the year ahead is the ongoing cost of living crisis, aggravated by the recent war in Iran. With inflation expected to grow at a faster rate than previously forecast, this will certainly have a knock-on effect for consumers – and a disproportionate impact on younger people.

This makes it especially challenging for brands with product or services that come at an added cost due to more responsible sourcing/production.  At present, only 2 in 5 Irish adults specifically seek out products that are sustainably sourced and are willing to pay more for products/services from brands demonstrating strong sustainability practices.

Let’s spin this into a hypothetical situation – Brand A vs Brand B.  Brand A is a Patagonia-type brand and Brand B is a local fast fashion clothing retailer. Brand B offers cheap clothing – low cost, with unknown (but likely questionable) sustainability practices.  In a cost-of-living crisis, it seems likely that in the short term, cost wins out and that Brand B emerges as the victor. However, at what cost in the long term?

During times of economic uncertainty, trust and emotional connection to a premium brand (with more up-front cost) are perhaps more important than ever before.   There is great uncertainty here though, with 7 in 10 feeling they find it difficult to know which brand offerings are truly sustainable. Women, in particular those aged 35-54, are especially likely to feel this way.

This uncertainty does, however, create a clear opportunity for brands to step in with better education and clearer guidance on sustainability.

A more knowledgeable consumer on sustainability

Consumers are increasingly aware of sustainable living and are growing in their knowledge of this, with 77% in agreement that they have a good understanding of what it means to live sustainably, up +7% versus this same time last year. However, there is some lack of confidence here, with only 1 in 5 strongly agreeing with this, suggesting that there is great opportunity for brands to find ways to better inform consumers.

Patagonia has done this via it’s Footprint Chronicles, which maps and educates consumers about the social and environmental impact of the production of its products – both good and bad. They don’t hide their dirty laundry when it exists – they are simply saying “think about the impact of buying these products and weight up the pros and cons through informed decisions.”  The key here is transparency and helping consumers become more informed about the products they are using – thus helping to build trust and positive associations with Patagonia.

There is some evidence that brands have been active in this space, with consumers growing their level of sustainability knowledge.  This is ultimately strengthening consumers’ sense of personal responsibility and agency when it comes to sustainability.

Belief in personal actions and desire to still pursue Net Zero 2050 target

The direct effects of the climate crisis can understandably seem quite distant to Irish shores.

However, the wet and stormy winter weather – which involved heavy flooding in some areas in the east of the country – is still somewhat fresh in the minds of the public. Over half now (51%) agree that environmental problems have a direct effect on their life today, up +6% vs this time last year and up +14% vs April ’23.

This comes at a time when 7 in 10 are armed with a belief that personal actions can improve the environment, up +5% vs this time last year and over 3 in 5 (62%) agree that it is important for Ireland to continue on its path to Net Zero by 2025 even if other countries do not.

A way forward for brands

Thinking again of Patagonia and it’s ‘Don’t Buy This Jacket’ campaign – there is a strong sense of leadership and authenticity from the brand.  This is what consumers in Ireland ultimately crave despite cost of living barriers.

For brands, the path forward lies in leading with this same type of transparency, building trust over time, and empowering consumers to make choices that are better for themselves and for the environment.

Will consumers ‘buy the jacket’? Ultimately, the savvy brands will find ways to highlight the impact such an action will have, while building trust and positive emotional connection along the way.

Read the full Ireland report here

If this report raises questions that are relevant to your organisation, we would be delighted to talk you through what we do, and how we can help you.

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Derek Bell, Associate Director, RED C Research