Still plenty of hope for green brands (despite recession)

I’ve been in Monterey, California this week at the Sustainable Brands ’09 conference, a fascinating and inspiring event that showcases the many people and companies pointing the way towards a greener, more sustainable, way of life for humanity.

On Tuesday, Annie Longsworth, head of our Global Sustainability practice, presented the results of our fifth annual 2009 GreenBrands survey. The GreenBrands survey, conducted in partnership with two WPP companies, Landor Associates, Penn, Schoen & Berland (PSB), as well as Esty Environmental Partners, explores consumer’s perceptions of green practices in business, gauges their level of involvement in improving the state of the environment, and identifies which brands they think are best at being green.

Since this is our fifth round of research, the GreenBrands survey is able to provide a good tracking and trending of consumer perceptions and offers great marketing opportunities for anyone who studies the results. To date, the studies have revealed that consumers have an increasingly sophisticated perspective on issues such as corporate responsibility, labeling, ingredient sourcing, packaging and buying behaviors

The primary message from this year’s results is that despite “the great recession,” all is not lost! Indeed, a majority of consumers remain aware of and concerned about the environment. There’s a common perception that as the economy spiraled downward people care less about the environment. Our results show that that is not necessarily the case. In fact, the percentage of people who care more about the economy than the environment has not changed since last year; and the mood a year ago was not one of imminent financial meltdown. In fact, it was quite positive. Much has changed of course, but this ratio has not—and that bodes well for the future of green brands. Certainly when the economy rebounds – and there are glimmers of hope – people will continue to think seriously about green issues, and continue to consider and buy green products.

The survey’s full results will be released later this month, but here’s a sneak peek at what this year’s GreenBrands survey found and some opinions on what it means to brands everywhere:

• 42 % believe that the environment is on the right track in the U.S., an improvement over 2008.
• 76% will spend the same or more on green products in the next year
• 77% say that buying green brands is at least somewhat important
• 60% can name a green brand compared to 40% from last year.

The survey also illustrates that consumers want values—and value. They are seeking less cost, but also more meaning.

• 74% of consumers either agree or strongly agree that it is important for the products they buy reflect their values.
• 63% of consumers are purchasing more green products than they used to.

The survey also reveals that household brands have gained top-of-mind share. The likely reason for the rise in the Consumer Products Group are trends in nesting at home (due to the recession); the broad distribution capabilities of these brands; their relatively low cost; their significant marketing spend; synergy between products and corporate activity; and improvement in green product attributes and delivery.

The overall message is clear: Go green! There is an increasing understanding of, and interest in, green issues. You don’t have to make your supply chain totally sustainable to start making a difference and gain the interest and loyalty of consumers (though that would surely be welcomed with open arms as well). To be sure, consumers are getting smarter, asking more questions, and setting higher expectations for both corporate and brand environmental performance, but the opportunity is there. Brand fundamentals – offering good value, being trustworthy, and caring about your customers – still resonate most with consumers, but if you add the fourth most popular brand attribute, “being environmentally conscious,” you have a great chance at success – for your brand and for the planet.

Check back with us later this month when we release the full results of our GreenBrands survey.