3 Topics for Sustainable Brands in 2015

VERTICAL INTEGRATION 2.0 – A NEW MARKET

What?

The management term Vertical Integration describes the phenomenon of companies owning their supply chain instead of using subcontractors. As you can tell, it is something that goes backwards in the value chain. What we see now is more of a forward-going vertical integration. Meaning that the after-market becomes more important to both companies and consumers.

Why?

Consumers are increasingly interested in the second hand market. They question consumerism and it is also trendy to be conscious (plus it makes them feel good about themselves). From a company perspective, there are great possibilities in this. Both new business, such as re-selling the products or providing product service, as well as a strengthened brand.

Example?

Nudie Jeans have been sporting this for quite a while now, you can go to their stores with your torn jeans and they will repair them for you. There are also other (still fictional) examples. IKEA might buy or create a second-hand company or app. Maybe H&M will launch an app for second-hand trading of their clothes. Finally, it would be great if Samsung or Apple could enable you to change parts in your mobile to make it look and work like a new one. Much like the Phonebloks initiative.

CELEBRITY ENDORSEMENT ENTERS A NEW ERA

What?

Celebrity Endorsement is a classic form of marketing. It is an easy (but expensive) way of creating high likeability and sales increase in a short period of time. This kind of endorsement has previously been abused by brands. But the future seems brighter. We now see much more relevant endorsements where celebrities collaborate with brands or organizations to highlight specific issues.

Why?

As a celebrity, it is ”à la mode” to take responsibility. They realize that their personal brands can to do social good in a very simple yet efficient way.

Example?

We move further away from Ryan Reynolds endorsing Hugo Boss perfumes or Nicole Kidman promoting Chanel No.5. Instead, we see Leonardo DiCaprio telling the UN that ”The time to answer the greatest challenge of our existence on this planet is now”. And the best example from 2014 is Conservation International´s campaign Nature is Speaking, including Julia Roberts, Penélope Cruz, Kevin Spacey, Edward Norton, Robert Redford and Harrison Ford.

It is time to snag your very own (relevant) celebrity!

BRAND COLLABORATIONS INITIATIVES WILL INCREASE

What?

Collaborations between big brands will become more common. The time has passed when it was considered a bit too risky to socialize with another brand. Collaboration means increased range and the opportunity to modernize your brand and/or reach new audiences.

Why?

It is increasingly important for brands to pursue their sustainability issues in a broader sense. This means creating change outside their industry and product categories. Conscious and modern companies realize that they cannot work in sustainability silos. Instead they need to think bigger and broader in collaboration with other actors on the market.

Example?

Collectively. Unilever, Coca-Cola, Marks & Spencer, Carlsberg and many more has joined forces in creating a digital platform to spark the change we need to see in the world. The aim of the project is to establish sustainable lifestyles as the new normal.