PURPOSE
‘Purpose’ has emerged as the final pillar within the fashion industry. In this generation, there has been a significant increase in the awareness of sustainability and social consciousness. This leads to fashion brands receiving recognition based on their brand philosophy and how their ideology aligns with their customer’s beliefs and values. This indicates that the concept of fashion exceeds beyond profit as it encompasses a commitment to social responsibility. Purpose-driven companies have the intention of creating a positive impact on the world while producing fashionable yet sustainable goods. A survey has shown that 62% of Gen Z prefer to purchase from brands that are sustainable and 73% of customers are even prepared to pay more for sustainable products. In addition, the majority of Gen Z and Millennials base their purchasing decisions on social, personal and environmental values (“The State of Consumer Spending”, 2023).
A brand philosophy is comprised of its mission, vision, value and proposition and serves as a compass that guides the brand’s journey. Philosophy defines a brand’s belief, existence and how they aim to serve their customers and articulating a clear philosophy is not just a marketing tactic but also a strategic imperative. This is supported by research which highlights that maintaining a well-defined brand philosophy leads to a competitive advantage as it creates a distinct brand identity, encourages customer loyalty and differentiates the brand from its competitors. An example that suggests how brand philosophy encourages customer loyalty is that research suggests purchase intentions of customers are impacted by their values, and when customer value impacts the loyalty dimensions of purchase intentions (Chaisuwan, 2021). This forms the foundation upon which purpose-driven initiatives are built.
Gen Z is particularly sensitive to the ethics and values of brands therefore to effectively communicate purpose to this group of consumers, brands must employ a variety of strategies. Findings have revealed that having transparency in a brand’s communication is likely to boost the consumer’s perceptions of the brand authenticity and transparency due to it’s perceived sensitivity, and this leads to positive impacts on their trust, attitude and behavioural intention towards the brand (Yang et al., 2020). Additionally, the use innovative methods like social media to reach the Gen Z audience is vital as it personifies a brand by being more interactive, such as thoroughly updating and sharing high quality content on social media platforms. This increases the rapport with consumers leading to an improved brand awareness and product perception, and therefore brand loyalty (Ninan et al. 2020).
Ninan, N., Roy, J. C., & Cheriyan, N. K. (2020). Influence of social media marketing on the purchase intention of gen Z. Influence of Social Media Marketing on the Purchase Intention of Gen Z. https://www.researchgate.net/publication/339164968_Influence_of_Social_Media_Marketing_on_the_Purchase_Intention_of_Gen_Z
Yang, J., & Battocchio, A. F. (2020, December 30). Effects of transparent brand communication on perceived brand authenticity and consumer responses. Journal of Product & Brand Management. https://www.emerald.com/insight/content/doi/10.1108/JPBM-03-2020-2803/full/html
Chaisuwan, B. (2020a, March 1). Sufficiency economy philosophy-based sustainability dimensions impact on customer equity and Brand Loyalty. ABAC Journal. http://www.assumptionjournal.au.edu/index.php/abacjournal/article/view/4779
Insight, F. (2023). The State of consumer spending: Gen Z Shoppers Demand Sustainable Retail. First Insight. https://www.firstinsight.com/white-papers-posts/gen-z-shoppers-demand-sustainability