Any business selling products online or in a physical store should take heed of one of the most important trends in retail marketing today. Consumers, especially younger ones, hold ethical practices and sustainability in high regard. This is true to such an extent that many are unwilling to do business with stores who do not make these priorities a prominent part of their brand and mission.
What are ethical practices?
Consumers can access information about a brand or company in an instant on the internet. Within a matter of seconds, they can learn about the practices an organization prioritizes.
Ethics in retail involve treating employees fairly, protecting customers’ privacy, and being honest and transparent about products, warranties, and shipping and return practices. In addition, ethics refer to a company’s commitment to making the world a better place, even if this happens in a small way in the local area where the company is headquartered.
Sustainability defined.
The retail sector makes a significant impact on the environment due to the manufacturing and shipment of products and the many other business practices that can negatively affect it. In recent years, companies have begun to make a conscious effort to reduce, reuse, and recycle in order to limit the damage they do to the earth, our waterways, and the air.
What drives consumer commitment?
While many entrepreneurs have come to recognize buyers’ increased focus on ethical practices and sustainability, there are several possible reasons why customers have become so concerned.
For one thing, Millennial and Gen Z shoppers are gaining greater influence. Not only do they value these practices more for themselves, but also they are encouraging their parents and grandparents to get on board.
Additionally, social media is playing a significant role in showcasing the importance of ethics and sustainability. Now that people of all generations have become familiar with forums such as YouTube, TikTok, Facebook, and Instagram, they are much more aware of the transformative effects that ethics and sustainability have the potential to bring to modern marketing strategies and companies.
Finally, we cannot overlook the role the pandemic is playing in this phenomenon. When COVID-19 lockdowns were in full force, consumers had a great deal of time to browse online for products and make purchases as well as to explore in depth the missions of the businesses they patronized. With infinite hours at their disposal, they became more discriminating about how and where they spent their money.
Then, along came the supply chain kinks that stemmed from single sourcing and the dubious manufacturing practices that came to light. Customers learned that they could be more discriminating about their purchases and began to steer their dollars toward retailers who lived up to the promises they made on their mission statements and annual reports. Now, consumers’ commitment to ethical and sustainable practices is stronger than ever. If you are a retailer looking to make a mark with today’s younger buyers, you need to do more than just find a reliable merchant account provider and an attractive set of products. Nowadays, you also must authentically demonstrate your company’s commitment to ethical practices and sustainability.
