The foundations of business are currently being re-written. Yet, it is not only by the big names, but by every business out there striving to do something good. What we are observing is a cultural shift, emphasised in post-covid times, where consumers are more interested than ever, in what businesses are doing to better the world and their community. A new paradigm in marketing and branding has occurred, as economic woes, the Ukrainian invasion and the looming threat of climate change, means everyday people are turning to businesses and the free market to produce societal change. They are more willing than ever, to support a business that’s doing something good.
This new marketing era is empowered by businesses that are set up with an equal and interwoven purpose to do good; whilst turning a profit. Tesla, Volvo, Thank You, all have a business model that incorporates their wider societal benefits. These businesses aren’t a typical philanthropic not-for profit, instead, they use the free- market system to attract socially conscious customers who support the brand’s larger purpose. A business doesn’t need to be a social enterprise to do good. The consumer environment has evolved, catalysed by climate change and COVID, so that customers are more than ever, aligning their lives and dollars with their social beliefs. Work and higher purpose is merging into one. Whether it be renewables, environmental issues, social change, wealth redistribution, (or something else entirely), customers and investors have turned away from traditional mechanisms of change, toward the new-found and limitless abilities of the modern purpose driven market.
Interestingly, younger generations are driving this market evolution. A Zeno group study (2020) found that Gen Z is 2x more likely than millennials to cite brands as having the power to make the world better. And even more compelling, 92% of Gen Z and 90% of Millennial respondents were quoted saying they acted in support of a purposeful brand, versus 81% of Gen X consumers, 77% of Baby Boomers and 73% of Matures (respondents aged 74 and up). This highlights a growing market bound to flourish as the younger generations strengthen their voice, empower the work force and put their money where their values are.
Now is the time for businesses to evolve and position themselves in this space, where customers will happily support a cause they believe in. But it does not have to be at the expense of profits, instead, it is a newly energised business paradigm, where revenue and social change are produced as one.
Do you want to know how your business can evolve and move into this new market opportunity?
Get in touch with us today!