We’ve all heard the saying “Going Green”. Almost everyone nowadays is changing their daily habits to be more environmentally friendly. But what does this mean for businesses? Eco Brands are gaining popularity, which means adding some green to your business could be your next marketing move.
With the rising concern about climate change, it’s no wonder people are beginning to be more cautious when shopping. Whether you believe in the crisis or not, there is some sort of draw to making an environmentally friendly decision. Consumers are becoming more and more likely to spend extra on a product if it is considered “green”.
In a 2017 joint study done by, The Hong Kong Polytechnic University and Rajamangala University of Technology Phra Nakhon, researchers found that there is a strong relationship between brand green image and eco branding; specifically, within textile brands. A majority of the people surveyed agreed that eco-branding helps a brand’s reputation and credibility, and that it increases their likelihood of purchasing from a business.
Eco-Branding is the emphasis on environmentally friendly practices within a company. This could mean that products are made with recycled materials, the production leaves a smaller carbon footprint, or that the company uses revenue to invest in protecting the environment. Some major corporations will highlight specific “green” projects they do while some companies are built upon the principle of being eco-friendly. Regardless, this is a rising trend for businesses as the world becomes increasingly worried about the state of the environment.
Brand Green Image is described in the study as the consumer’s value in the eco-friendliness of a brand. Target consumers are predicted to be more willing to pay more for eco-friendly goods and services. Not all consumers hold environmentally cautious production as a high factor in decision making, but some however do. It is important to reflect the green image to that target market. The goal is to tap into the target’s values and create a more personal connection between the brand and consumer.
Credibility is a huge factor in brand loyalty. Consumers favor brands that are consistent and reliable. Data shows a positive relationship between eco-brand and credibility. Eco-Branding shows that the brand is concerned in preserving the environment, a value in which some consumers hold highly. However, it is important when implementing eco-branding to be transparent with the audience. Claiming to be “green” when sustainable practices are not being made can cause major damage to a brand’s credibility.
The study also showed that consumers are more likely to prefer a brand with an established green image. If eco-friendly tactics are integrated into the company’s brand image, participants of the survey stated that they were more likely to do business with them. This means that sustainability within a company is a key factor to market to the public.
If you are considering enhancing your company’s brand image in the future, perhaps implement an eco-branding strategy.
1. Introduce green products or services into your company. An example of a green product would be something that was made from recycled materials or was made in a process that used low energy. These types of products are becoming increasingly popular, especially within the fashion industry. Textiles require a lot of energy and water to create, so many brands are looking for alternate production methods for their products. Retail franchise H&M has a service that promotes recycling used clothes in exchange for a discount- which promotes an eco-friendly brand image.
2. In addition to adding green products or services, promote green behavior in branding materials. Include reasons why it is important to shop sustainably or use green products. Being transparent on why the brand is eco-friendly helps to build credibility and trust amongst consumers.
3. Highlight the effect on the environment your company has made by switching to be greener and articulate that data to shareholders. This creates more value in the company and can attract potential investors. Being transparent with shareholders is another way to strengthen relations and brand reputation.
Not only does eco-branding have the potential to attract more customers, it can boost your company’s reputation. As the results of the study show, there is a positive relationship between eco-brand and green brand image. There is potential for increased value, profit, and brand loyalty. So perhaps going green might be your next business move?
Post written by Lyndsey Newton
Kan, Chi Wai, Ting Chow Cheby Yuen, Chamlong Sarikanon, and Rattanaphol Mongkholrattanasit. 2017. “A Study of Brand Green Image in Relation to Eco-Branding of Fashion Products.” Applied Mechanics and Materials 866: 448-451. doi:http://dx.doi.org.liblink.uncw.edu/10.4028/www.scientific.net/AMM.866.448. https://search-proquest-com.liblink.uncw.edu/docview/1910408508?accountid=14606.
IMC Hawks Blog 