Consumer news and comment CCB 108

December 04, 2009

The Dawning of ‘Democratic Consumerism’?

Last month the CEO of ASDA spoke of the dawning of a new shopping experience. ‘There will be no ‘behind the scenes’ he said. Carrot cams and cow-cams will reveal all about the way in which our food is produced and we will have the power to decide if we buy (or not) according to an informed judgment. In principle, its a good idea. Dole has been doing something similar with their bananas for a while. But let’s be a little realistic. The majority of consumer concerns tend to focus on products that have come from countries where labour or environmental issues and abuses are greatest. That’s not to say there won’t be abuses on a carrot farm in Kent, but I wonder if Asda would be quite so keen to install cameras in a Colombian fruit farm. Then there are other questions. Apart from the possible privacy issues this raises for farmers or workers concerned, if the consumer has made it thus far and is watching enthralled as his carrots get pulled from the ground, at what point might the law of unintended consequences kick in? Farms are dirty, smelly, messy places. I should know, I grew up on one. My brother is an organic dairy farmer in Wales, and while he is open to the idea of Daisy and Cuddles becoming overnight stars, the milking process is not about cute long eyelashes, swishing tails and fountains of pure fresh milk gushing forth. What will the consumer do when faced with a cow‘s dirty bottom, or a grumpy, tired and overworked farmer thwacking a recalcitrant member of the herd to get her moving in the right direction? Be horrified, switch brands, and report the farmer to the RSPCA?

Most consumers can only cope with so much truth and complexity when it comes to how their goods are produced. Any process of ‘democratisation’ in the supply chain has to ensure that farmers too, have the right, and means, to decide how and when to engage with their consumers, without the rather less democratic interference of retailers.

Liza is an associate director at Corporate Citizenship. Email her to find out about China, supply chain and brand footprint; liza.lort-phillips@corporate-citizenship.com

Consumers want greener living – but not at any cost
New research from Mintel, released in October, has shown that Britain’s enthusiasm for green and ethical living is being impacted by financial constraints, with one in five consumers not in a financial position to think about green or ethical issues. However, the new report also shows a strong commitment to ethical and environmental issues, as those rating them as ‘very important’ were actually up marginally on 2008. Today, some 97% of adults have adopted at least one of the greener behaviours included in the survey, implying that there is a strong basis of support for further green initiatives, such as energy-saving ideas, if retailers and manufacturers were to provide positive leadership. Indeed, in terms of low cost greener actions such as using re-usable bags and switching to low energy light bulbs, behaviour has been unaffected by the recession. Mintel research reveals the amount of consumers adding energy saving features to their home is up 6% and those switching to energy saving lightbulbs are up 5% from last year.
Contact: Mintel
www.mintel.com

Recession fails to dent shoppers’ ethical beliefs
By 2012 nearly a fifth (37%) of shoppers expect to be buying more local and regional food, while 34% will be looking for more food that meets high animal welfare standards and 31% expect to buy more Fairtrade products. Shoppers are showing greater support for all three of these areas than at the same time last year, according to new consumer research published on October 13 by IGD. Joanne Denney-Finch, chief executive, IGD, said: “Shoppers expect to be more careful in making their choices than today. That doesn’t mean trading down – at least according to shoppers. Almost half expect to enjoy a better quality of food by 2012, with only 7% expecting it to be worse. So shoppers intend to keep changing their habits, seeking more from less, and they expect the food and grocery industry to keep delivering better value”.More generally, over half the shoppers surveyed (54%) said they would be more careful about spending money in the future than they are currently, regardless of economic recovery.
Contact: IGD
www.igd.com

Consumers Are Using New Media to Engage with Companies on Issues of Corporate Responsibility
Survey by Cone, released on October 20, has found that an increasing number of American new media users are using online outlets in efforts to influence corporate decision-making. The survey of American new media users found that 44% ‘are searching for, sharing or discussing information about corporate responsibility (CR) efforts and programs’ via such outlets as social networks, blogs, and online games.
Whilst 79% of Americans who are active on new media believe companies and nonprofits should use these channels to raise money and awareness for causes, 60% have used some form of online or new media to support a cause. Eighty-five percent of respondents say new media provide them with an opportunity to learn about new issues, and a similar number (80%) believe they provide another way to support their favorite causes. They champion important issues in a variety of ways, including advocacy (36%) (i.e., forwarding a message to friends), personal behavior change (34%) and purchasing cause-related products (23%).
Contact: Cone
www.coneinc.com

Ethical purchasing squeezed by recession, but companies will continue to invest in CR
As the economy continues to dominate public concerns, Ipsos MORI research, released on October 28, shows the importance of company responsibility in people’s purchasing has declined sharply this year.
When choosing a purchase, only around a quarter (26%) of the British public think it is very important that a company shows a high degree of social responsibility, compared to 43% in 2008. Nevertheless, the majority (85%) of Ipsos MORI’s Reputation Council (senior Communications professionals within companies), believe that companies will continue to invest in corporate responsibility. Among Corporate Responsibility Experts (CR commentators and advisory organisations), 70% agree and 64% agree among NGOs (UK-based NGOs including campaigners and charities). The Board is more likely to need convincing, however: 57% of Captains of Industry agree companies will continue to invest in corporate responsibility despite a tougher economic, lower than the other groups but still a majority view.
Contact: Ipsos Mori
www.ipsos-mori.com

In Brief

Asda introduces transparency initiatives
Asda announced a new raft of initiatives to engage new consumers in order to empower them and earn their trust and loyalty over the long term. The company said it was responding to the democratic consumers demand for more transparency and will enable its customers to make decisions that influence what and how Asda sells products. Examples include the installation of a webcam in one of Asda’s processing plants which enables consumers to see how carrots and organic carrots are processed each day as well as the Chosen by You initiative, which from January 2010 will allow an existing community of 18,000 regular Asda customers to be given access to products before they go into shops.
Contact: Asda
www.asda.com

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