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The growing influence of consumers on business operations and brand shaping

The growing influence of consumers on business operations and brand shaping

Consumers are becoming reviewers and even co-creators of brands today, experts assess. Social media is a significant tool in their hands. Representatives of Generation Z, in particular, are eager to exchange opinions there – both flattering and critical – about various products and services, and, importantly, they very often use them to guide their decisions.

– This means that today, more than ever before, consumers are exerting an influence on how brands function – says Kamila Koźbiał from DS Smith. She cites the approach to ecology and the growing zero-waste trend as an example. Driven by consumer demands, changes are being made not only to the products themselves but also to their delivery methods and packaging.

According to a 2021 report by the research firm IQS, commissioned by Gumtree Polska, 63 percent of Poles declare that they live in an ecological way, and on average, one in three has encountered the concept of zero waste and knows what it means. For producers, zero waste means designing, manufacturing, and managing the product life cycle in such a way as to minimize their environmental impact, the amount of waste generated, and wasted raw materials as much as possible. In turn, a zero-waste consumer leads a lifestyle in which they try to generate as little waste as possible, thereby not polluting the environment.

– This trend concerns a growing number of consumers and will certainly continue to develop. We can see this, for example, in the reactions of Generation Z representatives. As recent Nielsen research shows, they are particularly sensitive to issues related to climate change and air pollution. They are already choosing brands that align with their values. They are also happy to share their observations on social media, which is an important argument in shaping the environmental policy of companies – says Kamila Koźbiał, Marketing Director for Central and Eastern Europe at DS Smith, a supplier of eco-friendly packaging, to the Newseria Biznes agency.

The survey also shows that the COVID-19 pandemic clearly influenced the habits of Polish consumers, directing their attention toward environmental issues and conscious consumption. Among those who declared familiarity with the zero-waste trend, almost every second person (46 percent) stated that they had implemented these principles in their home during the pandemic. This is also confirmed by a survey conducted at the end of last year on behalf of the Veolia Polska Foundation, in which 52 percent of Poles declared that they would like to implement zero-waste principles in their lives and not generate waste.

– Zero waste is already a trend that has taken deep root in the minds of Poles; more and more people are living in accordance with its principles. As consumers, we are starting to prioritize quality over quantity more and more. We realize that we don’t have to have everything, that we can reduce our choices to a limited number of things that we simply need. In that case, we are even willing to pay a little more for them – says Joanna Kądziołka, a board member of the Polish Zero Waste Association.

– This has a huge impact on the product itself, but also on the packaging – says Kamila Koźbiał. – Today, 36 percent of Polish consumers declare that they want to receive products with as little packaging as possible. Examples of segments where there is still a lot to be done in this area include the cosmetics industry, the household chemicals industry, as well as beverages or snacks.

Research conducted by the Mobile Institute and Allegro as part of the Green Generation initiative shows that consumers shopping online pay much more attention to ecology than others. Results from 2021 indicated that 77 percent of e-shoppers notice non-ecological practices, and they most often mentioned the use of foil and other plastic packaging to wrap products. In turn, a study conducted by DS Smith showed that nearly half of online shoppers (41 percent) want to receive ordered products in eco-friendly, recycled packaging.

– I will give an example from my own life. When I shop online, I ask the seller to pack the shipment in a reusable cardboard box, without plastic fillers or foil on the outside. Such a shipment, properly adjusted to the size and weight of the product inside, is exactly what acting in the spirit of zero waste is. Research shows that consumers would like their shipments and product packaging to be more sustainable, for sellers to use secondary circulation and pack them, for example, in recycled cardboard boxes – says Joanna Kądziołka.

– 43 percent of online consumers notice excessive amounts of adhesive tape used to pack products, and 40 percent notice when the packaging is disproportionately large for the product – adds Kamila Koźbiał.

As she points out, in studies, almost 20 percent of consumers already declare that if they receive packaging that is too large for the product inside, they will stop shopping with that brand or seller again. At the same time, consumers are becoming increasingly sensitive to manifestations of greenwashing, i.e., superficial pro-ecological actions taken only to improve a company’s image.

– Consumers not only want to see ecological slogans, but they want to know the exact data that confirms the change in behavior of their favorite brands. Together with the Ellen MacArthur Foundation, we have created guidelines for circular design, thanks to which we are able to accurately calculate and show optimizations in eight parameters, such as CO2 reduction, and the functioning of packaging and products throughout the entire supply chain. And this is data that can later reliably form the basis for information for consumers – says the Marketing Director for Central and Eastern Europe at DS Smith.

These expectations are putting increasing pressure on business, forcing companies to look for new, more eco-friendly solutions.

– What zero waste is in our individual lives is called a circular economy in the economy. Business – being aware that it has increasingly conscious consumers on one side, and laws and regulations at the European Union level on the other – will implement these principles in its projects, products, and services. I think these trends will take root permanently, both in the minds of consumers and producers – assesses the expert from the Polish Zero Waste Association.

– The attention consumers pay to pro-ecological issues translates into interest from brands, which are increasingly coming to us and wondering what parameters they can improve, how they can replace fillers, or whether they can optimize the thickness of packaging to reduce the amount of transport and vehicles, and thus also CO2 emissions. They are increasingly turning to us for help, for example, in finding an ecological form of fillers made from cardboard instead of polyurethane foam – says the DS Smith expert. – All these issues also mean that brands are more educated, sometimes even trying to outdo each other in what else can be optimized, and this trend is obviously beneficial for our environment.

Source: Newseria