A blog about marketing, causes and a variety of topics in the “goodsphere”

Category Archives: Consumers driving change

Edgy online shopping…will more people buy in?

Posted on January 19, 2010 in Consumers driving change, Purpose Products, The Future

More and more people are starting to understand that they really can drive change using the simple power of their wallet (or purse). Today, online players like The Ethical Superstore in the UK are making it easier for people to buy a range of Fair trade, Organic, and Eco-friendly products through a provider that they trust.

The Ethical Superstore is still very young…launched in Nov. 2006, they’ve recently merged with Natural Collection (a competing online ethical shop) and offer a big portfolio of products across a range of categories (ala Amazon.com).  You can find energy efficient gadgets & electronics, beauty, sports & outdoor, etc. etc.  They also have a great gift giving guide.

The site is well designed, and you really feel like you are on a major eRetailing site vs a small niche player.  You can shop by brand, ethical concern, price, etc.  The company’s brand selling line is compelling as well:  “Buy What You Believe”.

I’m predicting that there will be substantial growth in the ethical space over the next 5 - 10 years.  Of course, there will always be a fringe element of “deep greens” who object to the online sales model that involves energy intensive shipping around the world.

Realistically, however, the deep green team needs to realize that eCommerce is not going away.  In fact, quite the opposite is occurring…eCommerce is booming, while traditional retail channels stagnate.  At least responsible online retailers like The Ethical Superstore try to minimize the impact of what they deliver in every way, shape & form, while they provide new opportunities for people to discover products that line up with their values.

Keeping that Ethical, Purposeful Edge

Clearly, The Ethical Superstore will need to innovate and dig deeper to differentiate themselves against the big online players who are (no doubt) watching this space.  They’ll need to focus on innovation as a core component of their strategy in order to stay 1 step ahead.  I suspect they realize this & they will continue to find new ways in which they can delight their community with exciting new 21st century services that the big online retail players cannot (or will not) provide.  They will also need to keep their edge when it comes to discovering ethical brands.  Currently, they sell from the likes of Cafedirect, Ecover, Traidcraft, People Tree, Green & Blacks, Divine, EcoZone, Solio and others.

I wish them loads of luck as they build this ethical shopping category online.  If you want to find out the latest news from The Ethical Superstore, then follow their blog. They also have a facebook group where you can learn about new products, discounts and promotions

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Are many new businesses going to be useless?

Posted on November 28, 2009 in Consumers driving change, Lifestyle

Most businesses are socially useless. –Umair Haque

With “Black Friday” behind us and “Cyber Monday” ahead of us, economic pundits continue to wring their hands and fret that holiday retail consumer spending will not “hold up” enough in 2009 to pull us out of the current economic funk.   At the same time, many in the underground “anti” world are asking people to just Buy Nothing for 1 day (Nov 27th was Buy Nothing Day).

Umair Haque (one of my favorite bloggers) is taking a different path by (indirectly) asking us to consider buying from Constructive Capitalists who are creating what he calls “thick value”.  Umair’s Constructive Capitalists are not in business only to make a buck by selling a commodity product to consumers suffering from “affluenza”.  Instead, they are doing things that matter to people, communities & society.  They are creating “awesomeness.”

Umair goes rails against socially useless businesses in the hilarious post Is Your Business Useless.

According to Umair, “socially useless businesses” have cost us about $12 trillion at a minimum over the past 5 years via the various bailout packages.  Paul Krugman, Simon Johnson, and Lord Turner agree.

Here’s Umair:

Socially Useless Businesses

Socially useless businesses created a global economy on life support, a  jobless “recovery” and mass unemployment amongst the young. Socially useless business is why we don’t have a better education, healthcare, finance, energy, transportation, or media industry. Socially useless business is a culture in shock, reeling from assault after assault on the fabric of community and comity. Socially useless business is the status quo — and the status quo says: “You don’t matter. Our bottom line is the only thing that matters.”

Until now. Today, socially useless businesses are living on borrowed time — and the clock’s about to reach zero hour. Somewhere out there is a Constructive Capitalist who’s going to use the power of meaningful economics to relegate you to the dustbin of economic history — just like Google and Apple are doing to big media, Wal-Mart’s doing to big food, FMCG, and retail, and Nike’s doing to shoes.

Constructive Capitalists are better businesses. They’ve learned how to create thick value: value that’s socially useful. They are doing things that matter to people, communities, and society.

Though I agree with Umair that socially useless businesses shoulder a lot of the blame for the current economic mess, I would argue that we (consumers) shoulder some of the blame.

Fewer Trips to the Mall

As I’ve discussed here, consumers really are boss (consumer spending drives 70% of US GDP) and our purchasing decisions/habits do make a difference.  After all, people like you and me decided to buy all of those junk mortgages and souless McMansions.  We’ve chosen to run up credit card debt instead of save for a rainy day.  If, for example, we decided to downsize and live within our means, we could break the cycle.  If we responsibly shopped on sites like the ethicalsuperstore.com (read their manifesto) instead of Target.com we could support new ethical and social business focused on people, communities & society.

In many ways…its up to us.

Fewer Trips to the Bank or Venture Capitalist for Entrepreneurs as Well

Seth Godin is also in the “Umair Zeitgeist” as he recently reminded entrepreneurs that the do have options when it comes to avoiding those socially useless banks that Paul Krugman discusses above.  In “Debt, Equity and a Third Thing That Might Work Better.” he reminds folks that they don’t have to settle for risk averse banks and “venture vultures” when staring new businesses. Other new & interesting social financing entities are forming that avoid the traditional system all together. I recently stumbled across SellAVenture (not the real name) at the ClearlySo Conference.  This group will bring social enterprises looking for start-up funding together with like minded people keen to fund via small amounts of money.  People like you and I will be able to get in on the action to drive socially useful businesses…no banks required.


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Prosumers, DIY and the future of people power

Posted on June 11, 2009 in Consumers driving change, The Future

There’s no such thing as a free lunch –Milton Friedman

Back in the 80s, Alvin & Heidi Toffler came up with the term “prosumer” for people who create goods, services or experiences for their own use or satisfaction rather than for sale or exchange. Businesses that embraced the “prosumer” trend have prospered nicely since the Toffler’s first coined the phrase back in the early 80s:

  • Amazon.com (leveraging consumer reviews)
  • Home Depot (DIY)
  • Linux (open source software)

Like many of you out there, I enjoy prosuming.  I blog & volunteer with charitable organizations, start-up businesses & church. I also enjoy investigating how brands are leveraging prosuming to drive their business, so I find myself participating in different branded prosumer activities when they cross my path. I don’t, however, enjoy prosuming when it involves putting in extra labor on some things that have been smartly “outsourced” to me by companies or governments.  One horrible example comes from the tax man…I cannot stand how governments get me to dig deep into my finances (sometimes for hours) just so they can get paid. I don’ t know about you, but I find the ever increasing complexity of the tax man annoying (especially as my wife is German, I live in Switzerland and am an American).

I’ve really never thought about the economic impact of prosuming. To my surprise, the Toffler’s estimate that the economic impact of prosuming could be 50 Trillion USD.  I have no idea how they reached this enormous number, but if they are even close to right, then there is WAY more hidden, “under the iceberg” prosuming activity out than I ever thought.

Futuristic prosuming activity that I have always heard about, but never really considered, is rapid prototyping and desktop production.  Futurists have been predicting that someday, we will be able to produce our own clothing, furniture, sports equipment, etc. cheaply at home–on our own.  Admittedly, I still have some reservations about this.  I know desktop manufacturing will make it much easier for small manufacturing start-ups to get going, and I realize that zealous DIY counterfeiters will one day be able to perfectly recreate pretty much any item at home.  But, personally, I find it hard to believe that I will ever “print-out” my own watch at home.   Having said that, there are some folks out there watching this space closer than I am (check out this link) and I must admit that some of the new technologies coming out today are simply amazing.

The Toffler’s further assert that prosuming will continue to grow rapidly as it expands and deepens across health care, pensions, education, technology, etc. or the next few decades.

There is so much untapped prosuming potential out there…wouldn’t it be great if a company could harness it for good?  A couple of months back I wrote about ifwerantheworld.com, a company that is trying to organize “prosumers with good intentions” across the world.   As I wrote this post, this start-up kept popping up in my mind as something to watch. Good companies and marketers will continue to watch the prosumer space and find ways to harness it.

Do you have a favorite start-ups looking to harness prosumers in a positive way?

Hat tip to the Tofflers for their excellent book Revolutionary Wealth and their interesting prosumer examples (e.g. tax man)

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Why aren’t more Europeans considered “Green shoppers”?

Posted on April 21, 2009 in Consumers driving change, Sustainability
Location of Switzerland in Europe on 1.Image via Wikipedia

As Earth Day approaches this week, I’ve got my mind on Green.

I recently saw a new Forrester report (European Green Shoppers Unveiled) highlighting that while 71% of the European population is concerned about the environment, only 12% of European adults can be defined as green shoppers (Forrester defines a Green shopper as someone thinking about the environment while shopping offline or online).

12%?  Wait a minute…aren’t Europeans supposed to be on the bleeding edge of sustainable living?  How can 71% of people care about the environment and only 12% actively use their pocketbooks to drive change?

European countries have long led the world in developing all things sustainable and several countries are early adopters when it comes to using sustainable energy (Spain announcing this week that it created 40% of its energy in March from wind). Germany, in particular is far ahead of the rest of the world when it comes to reducing, reusing and recycling.  A few months back, I wrote a this confessional post about how I practically received a Graduate degree in recycling after moving to Germany.

So what gives when it comes to considering the environment while shopping in Europe?

While on many levels European companies and consumers are way ahead when it comes to sustainability, there is still a large gap between concern and action when it comes to buying Green, unfortunately.

For quick answers on this dilemma, I went to my European wife…

According to my wife, Europeans are master recyclers and brilliant when it comes to bringing reusable cloth bags to the Supermarket, etc.  At a very young age she was taught (in school) how to reduce, reuse and recycle.  But, when she was young, buying Green wasn’t even close to mainstream.  If you wanted to shop eco-friendly, you shopped at a local farm (that’s hard when you live in a city) or grew your own vegetables at home.  Shopping Green was simply “fringe” and way too expensive.

In effect, my wife was taught to recycle outputs and show respect for nature…but shopping Green was considered a luxury (and only existed in very specialized shops).  Naturally, the mindset of Green = Luxury is hard to shake.

Of course, my wife & I now buy organic and Fair Trade whenever possible now.  Switzerland’s COOP (where we often shop) does a great job of making eco products readily available alongside the classics.  However, my wife (along with other Europeans I know) believes that when it comes to buying Green…the landscape is still a bit too confusing.  Also, as a regular reader of “eco-test” magazines, she is becoming more skeptical of Green claims on product packaging.  The good news is that (at least here in Switzerland) “bio” food is getting cheaper and pretty competitive vs. the normal offering.

Is there a silver lining in any of this?

According to the Forrester survey, European green shoppers are more likely to be brand-loyal and to spend more online and across more categories than non-green shoppers. So, if retailers can get their “hooks” into those 12% of Euro Greens–they will likely find them very profitable over time.

Digital is also key

Green shoppers are also heavily engaged in online social media and are information-savvy, so retailers should exploit this and really focus on building best in Class Digital Experiences.

Other interesting demographics of the Euro Green Shoppers from the report.

  • Green shoppers skew mature and female. Sixty-one percent of green shoppers are women, compared with 40% of non-green shoppers (see Figure 1).
  • Green shoppers are well-educated and wealthy & live in big cities.
  • The Netherlands and the UK have the highest proportion of green shoppers, whereas Italy has the lowest.
  • Green shoppers have vigorous hobbies.

What do you think about all of this?

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Carrotmob. Using carrots instead of sticks via flashmob 2.0

Posted on April 18, 2009 in Consumers driving change
Carrots can be selectively bred to produce dif...Image via Wikipedia

Are you the carrot or the stick type?

As the old story goes, there are a couple of ways to make a stubborn donkey get a move on…either beat it mercilessly with a stick or dangle a juicy carrot out in front of its mouth. (Carrotmob FAQs)

So, if an activist group wants to get businesses interested in making positive change…what method should they use in 2009?

Using a flashmob 2.0 activist concept, Carrotmobbers believe that they can get businesses to make positive changes by offering them profits (carrots) instead of sticks.

Carrotmobs

Carrotmobs are mass shopping sprees at “chosen” businesses.  In return for a huge spike in footfall and revenue from Carrotmob shoppers, selected businesses donate a portion of their proceeds toward energy-saving upgrades in their store(s).

A win/win

Carrotmobbed businesses win via the big jump in retail sales–something that they would normally only see during key consumption periods (Xmas, Fathers Day, whatever).  Businesses (presumably) also get the opportunity to lure new target groups (green & trendy types) into their stores.  These new shoppers could form a bond with the business that they helped to “make green,” and ultimately become return shoppers.  Carrotmobbers participating in the event also benefit; they get the psychological boost of having done something good for their community over the weekend.  And, though I have never been to an event, I would guess that a Carrotmob is a great community networking opportunity for participants.

In the end, a Carrotmob is a great way to get consumers engaged…it helps them see first hand how powerful their purchasing habits can drive change if directed toward a positive end (see this recent m-cause article).

l like the fact that Carrotmobs are looking to move beyond negative, “anti” consumer activism.  “Anti” activists can tend to focus too much on the “stick” (boycotts, protests, etc.).  We obviously need both (carrot & stick) to drive change…but all too often the stick is the default option.  Also, I think it is great to see the Flashmob concept getting used for something positive (we are seeing this more & more).  Finally, the video on the Carrotmob.org homepage just works…it pulls the web surfer immediately into the concept in a fun way.

P.S.  The Carrotmob is actually a project from Virgance–a new social business that looking to promote world-changing activism campaigns.  These guys look like they are onto something…i’ll look forward to hearing more from them.

Here is another great article on the concept…Ready, Set. Shop

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mob marketing–>a future of pitchforks & torches?

Posted on April 6, 2009 in Consumers driving change, Marketing
Foto tomada en el invierno del 2007 en el caba...Image via Wikipedia

How did an internet mob force a major company to pull a seemingly harmless packaging change off the shelf so quickly?

For those who haven’t followed the story, the Tropicana packaging change drama has been going on for a few months now (click here for the background).  The latest news is that the huge internet amplified backlash seems to have contributed to a 20% drop in sales.

Wow…

Tropicana didn’t mix gasoline into their juice.  They didn’t get caught making 5 year old kids work for 20 hours in the hot sun without sunscreen.  They weren’t using strange genetic formulas to make their oranges turn watermelon sized.  They didn’t even change the taste of their iconic juice (like Coke did with New Coke) Instead, Tropicana got hammered due to a pretty harmless packaging design change that didn’t sit well with consumers–apparently leaving off their recognizable “juicy orange + straw” logo (among other things) etc.

According to Information Resources Inc., unit sales dropped 20%, while dollar sales decreased 19%, or roughly $33 million, to $137 million between Jan. 1 and Feb. 22.   Several of Tropicana’s competitors appear to have benefited from the misstep, notably Minute Maid, Florida’s Natural and Tree Ripe.

What a response.  Why Tropicana?  And who set this agenda in motion?

Consumers…

The lesson for those looking to change companies in a hurry…start finding ways to motivate the consumer mobs.

As Consumers, we really can drive change in today’s connected world–and not just meaningless packaging design changes…we can drive change that makes a difference.  Purpose led internet mobs can start driving record sales of “Good” companies/brands and force change on companies with sketchy sustainability track records.

Look, today there are enough “Good” brands and companies out there with cause related campaigns or “justifiably” green products.  We can spend a little extra time to seek out these products and buy them.  And, even if a company isn’t particularly “green” or “social” (in your mind) but offers a new product in this space, give them the benefit of the doubt (for now).   If they do make an honest effort to offer a product with a cause or green focused campaign, don’t bash them as greenwashers right off the bat–encourage them!  Go ahead and buy the stuff…this will help motivate companies to lead to bigger, better, (and probably more authentic) promotions down the road as skeptical managers discover that green/social products actually work (Greenbacks lead to Greenmanagers)

Don’t get me wrong, I know that there are some unscrupulous players out there trying to prey on the recent uptick in green consumer sentiment…and we should avoid them like the plague.  Watchdogs need to be all over this space.

But, if we can psycho-analyze Tropicana orange juice packaging changes & spend 2 hours writing a blog post about this nonsense, surely we can do our homework and get our hands on some Green/social products + occasionally buy from a new player out there trying their luck in the space.

If we drive $change$ 1 purchase at a time, we will see companies change.  And, if companies change, the world will change.

And, through the web, we can amplify change, making all this stuff happen MUCH faster…

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