PURPOSE BLOG
This weeks pillar is purpose, with the development of competitive business strategies in the fashion industry, it is crucial that brands display clear values and a purpose. A brands purpose refers to the reason the brand exists – other than for profit. This could be an underlying ethos towards a social issue, sustainable practices, etc… This is especially important not just in context of consumers but how the business itself grows. Research shows “Purpose-oriented companies have higher productivity and growth rates, along with a more satisfied workforce who stay longer with them” (O’Brien et al., 2019). People want to work for brands that share their values, and that want to do good for the world, allowing for a more positive worker environment and motivates workers to contribute to the best of their ability. “When purpose is hardwired, a company’s positions, communications, and external engagement become logical extensions of your business model; purpose eliminates the gap between walk and talk.”(Leape et al., 2020) a brands purpose must be present throughout every aspect of how its runs and without this it cannot properly function.
Gen. Z are the future consumers that business must be able to communicate their purpose to. This generation is know for its preference to brands with a social standing, for example, ‘the research of members of Generation Z shows that 73% are willing to pay more for sustainability, with the majority willing to pay a premium of up to 10%’ (Furbee, 2021). In order to gain the attention on Gen. Z, brands must align their purpose with the consumers. Another thing to consider is transparency, “Things that you could in the past hide by selecting and choosing what you wanted to show the public – today everything is fair game”(Rahilly et al., 2020). A brands ethos must translate clearly to its consumer, for example if it claims to be ethically made, consumers can easily find online if the brand has a history of unfair treatment of workers. In order to communicate its purpose, brands look to social media. Influencers are a tool many brands favour when it comes to promoting to Gen. Z. Followers of influencers consume their media, wether that be through YouTube, tik Tok, Instagram or other platforms, these parasocial type relationships give a sense of trust and many will take their word without question. Brands use this to advantage and pay influencers to rave about their values and purpose. One of the first luxury brand to endorse an influencer was Louis Vuitton in 2021, inviting YouTuber Emma chamberlain to their Paris fashion week show. Emma vlogged the show and the results saw an expanse on the brands normal clientele and an opportunity to express there values through a modern relatable lense.
Reference
Leape, S., Zou, J., Loadwick, O., Nuttall, R., Stone, M., & Simpson, B. (2020, November 5). More than a mission statement: How the 5PS embed purpose to deliver value. McKinsey & Company. https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/more-than-a-mission-statement-how-the-5ps-embed-purpose-to-deliver-value#
Rahilly, L., Finneman, B., & Spagnuolo, E. (2020, August 4). Meet Generation Z: Shaping the future of Shopping. McKinsey & Company. https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping
Furbee, C. (2021, December 9). Gen Z makes sustainability important for all businesses. Sustainable Investment Group. https://sigearth.com/gen-z-makes-sustainability-important-for-all-businesses/
O’Brien, D., Main, A., Kounkel, S., & Stephan, A. (2019, October 15). Purpose is everything. Deloitte Insights. https://www2.deloitte.com/us/en/insights/topics/marketing-and-sales-operations/global-marketing-trends/2020/purpose-driven-companies.html