Winning over the kingmakers: How brands can charm conscious consumers

Globally, people of all ages and backgrounds are more aware of the impact of their consumption on the environment and society. Our Brand Impact Index found that a key element of connecting with consumers is to ‘create consciously’, considering the wider impact of brand offerings on people and planet.

A report by GlobeScan echoes this finding, revealing that more than a third of global consumers will pay more for environmentally-friendly or sustainable products. In the UK, YouGov found that around 67 percent of consumers consider themselves to be conscious consumers, meaning they actively consider the social, environmental, and ethical impact of their purchases.

There’s a strong imperative for brands to recognize this growing awareness, and deeply understand and align with the values of conscious consumers. But the term ‘conscious consumer’ is not a one-size-fits-all; consumers have diverse social, ethical, and environmental priorities, as well as varying purchasing power. It’s not enough for brands to adopt ethical and sustainable practices in isolation. Success means tuning into what matters most, and reflecting these priorities. It’s up to brands to understand the nuances, and align specific products, services, and experiences with the sentiment of their conscious consumers. But how?

Identify what’s important to conscious consumers

To truly align with conscious consumers, brands can invest in research, data, and insights to deeply understand the unique needs, behaviors, and trade-offs of their conscious consumers. In doing so, brands can pinpoint the values that resonate most, ensuring initiatives align with what their audience cares about. Moreover, understanding the trade-offs that consumers make – shaped by their individual circumstances – allows brands to design strategies that reflect consumer priorities and constraints.

Research conducted by PA shows a snapshot of how conscious consumers are looking to reduce their carbon footprint. Many of these factors will change how they choose to shop – for example, if a product can be recycled, with clear instructions for how to do so, it is likely to be more attractive to conscious consumers.

Invest in aligned front- and back-of-house initiatives

To attract and retain conscious consumers, brands and retailers must align their front and back of house operations with social and environmental responsibility. Our Impactful Influence Framework identifies front and back of house initiatives that, hand-in-hand, guide changes. Making and communicating those changes effectively will boost positive brand reputation, and attract a growing market of conscious consumers.

Front of house initiatives focus on sales and customer service

Three core areas for attention are:

1. Product transparency and engagement: Transparency empowers consumers to make informed choices and fosters trust. Retailers can build this trust by providing detailed information about products at the point of sale, including clear labels and digital tools that show how products are sourced, produced, and transported.
2. Sustainable services: Offering repair, recycling, and product take-back programs allows customers to extend the lifecycle of their purchases. By integrating circular economy initiatives into the customer experience, brands can demonstrate their commitment to reducing waste.
3. Certifications and ethical assurance: Displaying certifications like Fairtrade, Rainforest Alliance, or Certified B Corp (both in-store and online) reassures customers that products meet stringent ethical and sustainability standards, making it easier to make responsible choices.

Back of house initiatives relate to supply, manufacturing, distribution, and logistics

Here, the core areas for values-aligned change are:

1. Ethical sourcing and supplier partnerships: Embedding ethical sourcing into the supply chain ensures that all back-end operations align with the brand’s values. Establishing partnerships with suppliers who adhere to fair labor practices and prioritize sustainable sourcing methods supports ethical supply chains.
2. Sustainable manufacturing and logistics: Brands can adopt sustainable production practices by reducing waste, using renewable energy, and minimizing water and energy consumption. In logistics, optimizing transportation routes, using eco-friendly vehicles, and employing energy-efficient warehousing solutions demonstrate an ongoing commitment to reducing environmental impact.
3. Supply chain transparency: Sharing detailed information about the origin of materials, production processes, and environmental impact is essential. Providing transparency on how products are transported, stored, and delivered helps consumers to understand the full lifecycle of their purchases and supports their drive for more sustainable shopping choices.

When brands understand the needs of their particular conscious consumers, they can use this insight to drive the front- and back-of-house activities required. This isn’t just about sustainability – it’s about responding to the nuanced social and environmental interests of diverse consumer segments. This builds trust with conscious consumers, ensuring that every aspect of the business – from customer engagement to sourcing and producing goods – reflects a genuine commitment to the causes that people care about.

The benefits of getting closer to conscious consumers

Getting closer to conscious consumers has many benefits from a sales and revenue perspective, but also in terms of brand loyalty and community-building. By prioritizing sustainability and ethical initiatives, retailers can attract new customers who are willing to pay a premium for products, services, and experiences that align with their values. For example, LUSH products are made from natural ingredients sourced directly from growers wherever possible, and products are never tested on animals – a core pillar of its ethos, reflected in its branding. The brand reinforces meaningful messages, inviting customers to be part of an ethical, environmental cosmetics movement.

Retailers who prioritize sustainability, ethical sourcing, and social responsibility can build a strong customer base and achieve long-term success. Adopting sustainable and ethical practices creates a positive brand image that resonates with consumers, leading to increased brand awareness, customer loyalty, and competitive advantage. Take Patagonia – in 2022, founder Yvon Chouinard transferred the entirety of his shares to two new entities: the Holdfast Collective, a nonprofit that ensures Patagonia’s $100 million annual profits protect nature, and the Patagonia Purpose Trust, which supports climate-conscious causes and initiatives. Patagonia is synonymous with environmental stewardship and is a go-to brand for climate conscious consumers.

Embracing conscious changes can also have a significant impact on employee morale and satisfaction. Linking up with community initiatives can create positive impact by supporting local suppliers and promoting economic and social development. Further, transparency in supply chain operations can lead to improved supplier relationships, greater supply chain innovations, and the development of sustainable products and practices with reduced environmental impact. One example is the work done by global drinks leader Diageo as part of the PA and PulPac Bottle Collective to pioneer a Dry Molded Fiber (DMF) paper bottle made from sustainably sourced plant fibers. The manufacturing process saves water and energy, and can be adapted for a wide range of products.

The growing demand for conscious consumerism is a significant opportunity for brands to make a positive impact and stand out in the market. By helping consumers to make more informed decisions, brands can build trust and loyalty, increase revenue, and contribute to a better world. Brands that embrace their responsibility to help consumers make conscious choices now will thrive in the years to come.