The general context for business development is changing and the concern that brands should have with sustainability will have to accompany this new socio-economic paradigm.
Today, the market has very particular characteristics, resulting from the pandemic and the economic recession it has generated, making it essential for companies to incorporate the social impact into their strategies. The expectation for a corporate purpose, an increasing sense of urgency with climate change, the growing demand for products and services from environmentally friendly companies, and unparalleled sensitivity to the output that brands present as a result of their plans of ESG (Environmental, Social, and Governance) came to demand or guide companies towards sustainability.
We can thus assume that the search for a new competitive advantage involves sustainability, which will allow brands to create differentiation, making them more competitive, more resilient, and more in line with current social and environmental trends. The challenges that this process creates can bring results with enormous transformative potential, opening up new opportunities for innovation and business growth.
However the affirmation of sustainability as an advantage presupposes that the brands’ vision follows an evolutionary path, which leads from the traditional reputation to become a relevant attribute and an effective growth engine. For this, initiatives and philanthropy must evolve into strategic pillars, reflected in the value chain of products and services, with the ultimate goal of a sustainable ecosystem. Recently, studies carried out by consultants such as BCG or McKinsey have revealed that brands with strategic plans oriented towards ESG have the potential to achieve greater value creation.
From the point of view of brand communication, the benefits arising from a business model that makes sustainability an advantage will be even greater as the commitment assumed and the coherence of the narrative. Once this strategic decision has been taken, communication should be proactive and endorsed by the entire C-level of companies, to position the brands as references for the segments. Starting from a holistic approach with story-telling about the impact caused can be decisive in bringing recognition and affirming brands as relevant players in the process of change, making them sought after and preferred.
Sustainability in the future of brands is thus of fundamental importance, with a decisive role in the ability to create a strong relationship with the market, which should be nurtured by constant and transparent dialogue through various communication channels. In the present and for the future, the existing alignment between purpose and expectations is increasingly rewarded by an informed and demanding consumer concerning business practices, whether environmental, commercial, or labor, with a real impact on the purchase decision, in the customer satisfaction, business margins or the increasingly relevant ability to attract and retain talent.
You can read the original article written by Ricardo Silva, partner at White Way, in Briefing.
