Sustainability as a differentiating factor for brands and companies

World Textile Summit 2015

Sustainability as a differentiating factor for brands and companies

13th November 2015

Introduction

Paula Oliveira

| WTS | Interbrand | 13 November 20152

Executive Director,Brand Consultancy@PaulaOliveiraBV

ABOUT INTERBRAND

Who we are

4

Founded 19741200 Employees32 Offices24 Countries20 Languages6 Continents1 Mindset


We understand how brands deliver business value

5 | WTS | Interbrand | 13 November 2015

Our legacy

How we measure success

Drive choiceCommand a premiumEngender loyalty


Our clients


Some of the brands we have worked with in and out of your sector

IS SUSTAINABILITY IMPORTANT FOR TEXTILE BRANDS?

Legal

Right

Moral / Fair

Check-list

Where is it going?

Waste Management Supply Chain Disposal

New driving forces are transforming the way companies do business and how they relate to different constituencies


EnvironmentCircular Economy

HumanShared Value, Shared Economy

Government

Employees

Suppliers

Shareholders

Community

Customers

Corporate Responsibilit

y

WHY?

1. New Norm

Some big business are at the forefront of this transformation

15

While others are being set up based on social values…


Merging The ProfitMotive and Moral Imperatives: The Rise of Social Enterprise in the United States.

A New Generation of Entrepreneurs is Practicing a Business Model that Places Equal Importance on Doing Social Good as on Making Money.

The Rise of Social Entrepreneurship Suggests a Possible Future for Global Capitalism.

Marketing 3.0 will be won by Purpose-Driven, Social Brands.

…leading to a new generation of successful brands with new business models and a higher purpose

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In 2015:The world’s largest taxi company empowers self-employed drivers

The world’s bigest accommodation provider creates income for home-owners

The world’s largest information source aims to make information accessible for everyone


2. Create value for your business

of consumers around the world say they prefer to buy products and services from companies that have implemented programs to give back to society.

66

Source: Nielsen global survey on Sustainability

of consumers want to reward responsible companies with their business.

51

Source: Nielsen global survey on Sustainability

of millennials (age 21-34) have a stronger likelihood to purchase from companies that support solutions to specific social issues.

89

Contribution of CC Summary: Regression AnalysisConsumer (across countries & categories)


Corporate Citizenship (CC) significantly impactsconsumer opinion: it is the most important for driving brand choice and it is even more important toB2B purchasers

Brand Choice Commitment Advocacy Brand Favorability0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

B2C B2B

Cont

ribu

tion

to

Choi

ce


People are becoming more and more willing to pay a premium for environmentally sustainable and socially responsible products and services

The same is true for the fashion industry


35%49%

41%20%

29%23%

11%20%15%

12%18%14%

9%14%11%

5% 9%6%

5%6%

23

Purpose-driven brands create extraordinary business value

An authentic and well-communicated purpose can contribute

up to

17%of a company’s financial performance*

Brands with a positive impact on our quality of life outperform the stock market by

120%

AirBnB’s latest round of funding values the young tech businessat

$20bntotal*on avergage*

3. It’s your legacy

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Collaboration

26

How to differentiate?

H&M


Fashion and quality at the best price in a sustainable way

Toms


For every pair you purchase, TOMS will give a pair to a child in need.

Climatex

Innovation for the Future.

Being brave

WHERE DO I START?

Clarity

• What is your POV on the world? What are you adding to the debate?• How do you differentiate?• What would we miss if you went bust tomorrow?• What legacy is your business creating?

Brand Strength framework overview


ClarityClarity internally about what the brand stands for and its values, positioning and proposition. Clarity too about target audiences, customer insights and drivers. Because so much hinges on this, it is vital that these are articulated and shared across the organization.Commitment

Internal commitment to brand, and a belief internally in the importance of brand. The extent to which the brand receives support in terms of time, influence, and investment.GovernanceThe existence of an operating model for the brand that enable the effective and efficient execution of the brand strategy.

ResponsivenessThe ability to respond to market changes. challenges and opportunities. The brand should have a sense of leadership internally and a desire and ability to constantly evolve and renew itself.

INTERNAL

FACTORS

Brand Strength framework overview


ClarityClarity internally about what the brand stands for and its values, positioning and proposition. Clarity too about target audiences, customer insights and drivers. Because so much hinges on this, it is vital that these are articulated and shared across the organization.Commitment

Internal commitment to brand, and a belief internally in the importance of brand. The extent to which the brand receives support in terms of time, influence, and investment.GovernanceThe existence of an operating model for the brand that enable the effective and efficient execution of the brand strategy.

ResponsivenessThe ability to respond to market changes. challenges and opportunities. The brand should have a sense of leadership internally and a desire and ability to constantly evolve and renew itself.

INTERNAL

FACTORS

UnderstandingThe brand is not only recognised by customers, but there is also an in depth knowledge and understanding of its distinctive qualities and characteristics

AuthenticityThe brand is soundly based on an internal truth and capability. It has a defined heritage and a well grounded value set. It can deliver against the (high) expectations that customers have of it. Relevance

The fit with customer/consumer needs, desires, and decision criteria across all relevant demographics and geographies.

DifferentiationThe degree to which customers/ consumers perceive the brand to have a differentiated positioning distinctive from the competition. ConsistencyThe degree to which a brand is experienced without fail across all touchpoints or formats

PresenceThe degree to which a brand feels omnipresent and is talked about positively by consumers, customers and opinion formers in both traditional and social media.

EXTERNAL

FACTORS

StrongBrands Drive Choice Create value

The value of brands

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20145075

100125150175200225250

BGB 100 S&P 500 MSCI World

Inde

xed

to 2

000

valu

es e

qual

ing

100

Source: Interbrand analysis with data sourced from Thomson Reuters and Best Global Brands

Strong brands deliver financial resultsBest Global Brands portfolio versus S&P 500 and Morgan Stanley Composite World Index


1. New Norm

2. Creates Value

3. Your Legacy

Thank youInterbrand London85 StrandLondon WC2R 0DWT: +44 20 7554 [email protected]