Unveiling Brand Purpose Amidst Market Progression
In such dynamic environments, companies that can effectively align their brand purpose with local values and needs are poised to thrive, says Sonar
Each year, consumers spend approximately $44 trillion, equating to $1.4 million every second. As consumer awareness grows, there is an increasing emphasis on purpose-driven brands that go beyond mere profit-making. Brands are challenged to not only keep pace but to lead the change. This immense volume of consumer activity and their shifting demands highlight the critical need for a deep understanding of a brand’s core purpose and a clear articulation of how it aligns with the evolving needs of the market.
Simon Sinek, author of "Start with Why," was one of the early advocates of brand purpose. His 2009 TED talk introduced a transformative idea: "People don't buy what you do; they buy why you do it." This shift in perspective has since redefined how businesses approach their core mission and values.
The Transformation Of Brand Purpose
Historically, brand purpose might have been seen as a marketing gimmick. Today, however, it has become a cornerstone of a brand’s reputation, relevance, and resilience. It’s not just about what a brand offers, but the reason behind its existence. Modern brands are increasingly focused on making a substantial societal impact while delivering exceptional value to their customers.
Emerging purpose-driven brands are seizing this opportunity to address specific environmental, social, or governance (ESG) challenges. These brands integrate their mission into every aspect of their business, from supply chain practices to final product offerings. For instance, whether tackling pollution or combating forced labour, their commitment to these causes is evident in their operations and products. As of 2020, 88 per cent of publicly traded companies, 79 per cent of venture and private equity-backed companies, and 67 per cent of privately-owned companies had ESG initiatives in place.
However, being purpose-led doesn’t mean compromising on product quality or accessibility. Successful brands in the ESG space ensure their offerings are both impactful and high-quality, reflecting that ethical practices can and should align with superior performance and attractive pricing.
Consumer Expectations And Market-specific Insights
Research shows that brand purpose is a critical factor for consumers worldwide. A recent study conducted across various markets—including mainland China, Korea, Japan, the Philippines, Thailand, and India—revealed that nearly half of the consumers bought a brand in the past three months because of its purpose, values, or positive societal impact. The study highlighted that the top issues consumers want brands to address are environmental sustainability and inequality.
In developing economies like India, Thailand, and the Philippines, consumers increasingly expect brands to contribute positively to society. They prefer companies that provide affordable products while supporting local communities and sustainable practices. For example, in the face of natural disasters and environmental concerns, consumers are drawn to brands that champion sustainability and use eco-friendly materials.
In markets such as Japan and Korea, where gender inequality persists, women are more likely to support brands that promote gender equality. Brands that actively work to address gender disparities through their products and messaging can build strong connections with female consumers and drive broader societal progress.
China’s market is seeing a rise in national pride, particularly among men who favour brands that celebrate the country’s achievements and global stature. While incorporating patriotic themes can resonate with consumers, brands must balance this with inclusivity and avoid any perceptions of exclusion or xenophobia.
The Future Of Brand Purpose
ESG strategies can affect operating profits by as much as 60 per cent, proving that a strong commitment to societal impact and sustainability is not only ethical but also financially beneficial. As market dynamics continue to shift, the concept of brand purpose will evolve. Brands must remain agile, constantly reassessing their purpose in light of changing market dynamics and consumer expectations. This doesn't mean changing core values, but rather finding new and innovative ways to express those values and make a meaningful impact.
Some key considerations for brands moving forward include:
Conclusion
In a world characterised by rapid change, brand purpose serves as the compass that guides companies through dynamic market landscapes. It is the driving force behind strategic decisions, the inspiration for innovations, and the foundation of relationships with customers, employees, and communities. By staying true to their purpose, companies are not just keeping pace with the market; they are actively shaping it.
This approach becomes particularly crucial in high-growth markets like India, which is projected to become the world's third-largest economy by 2027, with a GDP exceeding $5 trillion. As India outpaces China's growth rate and attracts global investments, it presents a prime example of how emerging markets offer both challenges and opportunities for purpose-driven brands. In such dynamic environments, companies that can effectively align their brand purpose with local values and needs are poised to thrive.
