PPB October 2017

The survey sought answers to three key questions: 1 How passionate are consumers about sustainable practices when it comes to purchase considerations? 2 Which consumer demographic segments aremost supportive of ecological or other socially responsible e orts? 3 Which social issues/ causes are the most people interested in? What Nielson uncovered was truly amazing, and indirectly resulted in becoming the starting point for our Quality Certification Alliance (QCA) journey. The findings revealed that two thirds of the “sustainable mainstream” population (a cluster of three of the five segments) choose products from sustainable sources over other conventional products. These consumers will buy as many eco-friendly products as they can and have personally changed their behavior to minimize their impact on global climate change. Additionally, these consumers are more likely to buy products repeatedly from a company if they know the company is mindful of its impact on the environment and society. Implications For Distributors What I found equally amazing is that of the global respondents who are responsive to sustainability actions, half are Millennials. They represent 51 percent of those who will pay extra for sustainable products and will check the packaging for “sustainable” labeling. Think about that finding for a moment and what that could mean to your business future. As companies continue to develop, Millennials will soon be making more buying decisions on the end-user level. Suppliers looking to make the sales transaction and the relationship with the distributor as effortless as possible need to understand the many factors that are involved within the sales cycle, including the important demographics and psychographics of those inside and outside the channel. It’s no longer a question of whether consumers care about social impact. Consumers (and end users) do care, and they show they care through their buying actions. Truth be told, most distributors, when asked, will state they add value to their clients. But when pressed to define what that value add is, they have a hard time coming up with more than a statement such as, “I source items for them at the budget they request and make sure the product is delivered on time.” Distributors looking to become real value adders and cement their relationships with their clients understand that the definition of value isn’t what the distributor thinks it is, but what the client thinks it is. In today’s business world, distributors need to become more aware of their clients’ mindset and what they really value. Implications For Suppliers As the marketing director for Fey Promotional Products Group, I know that understanding trends and forecasting is important for growth and company development. The findings by Nielson, when combined with other industry data such as the growing Millennial force within our industry and requests by distributors for product safety testing, made me stand up and take notice. Any promotional products supplier looking to differentiate itself needs to focus on determining how its brand can effectively create a shared value bridge by marrying the appropriate social cause and consumer segments while simultaneously creating an effortless business transaction with distributors. Obtaining QCA accreditation was that bridge for Fey Promotional Products Group because QCA qualifies suppliers based upon five pillars: • Social Compliance • Product Safety • Product Quality • Environmental Impact • Supply Chain Security If you are unfamiliar with the QCA moniker, I strongly recommend you become aware, because your clients will be demanding more and more from you as a distributor, and if you are not providing that value, they will find someone else who will. Your clients likely will very soon (if not already) want verification and peace of mind that the workers making the products they are considering buying as a promotional tool are treated well by their employer, their workers’ health and rights are protected, the products they are putting into the hands of their customers have been tested It’s no longer a question of whether consumers care about social impact. Consumers (and end users) do care, and they show they care through their buying actions. Consumers are more likely to buy products repeatedly from a company if they know the company is mindful of its impact on the environment and society. | OCTOBER 2017 | 13 INNOVATE