Will How Brands Act Now Affect Future Business?

With a recession looming and the entire country in fear for their health and job, all eyes are on businesses at the moment, but will what they do now affect them long-term? 

Brand purpose seems more important than ever and consumers are increasingly becoming more aware of who and what they’re supporting when they choose to spend their hard-earned cash. It’s very well pinning your brand on caring for your staff and the communities you operate in, but are these brands actions following through on their promises? 

Research from media company Kantar on how the current pandemic is influencing consumer behaviour found that consumers believe staff welfare should be a company’s first priority, with the top concerns being "Providing a safe environment for staff" and "enabling them to work flexibly”. Now, it’s safe to say some major brands have missed the mark on this, but thankfully there are plenty more who are putting these concerns at the top of their lists 

Some big brands are doing it really right. Primark has announced it will create a fund to help pay the wages of garment workers linked to their factories in developing countries across the world. Chief executive Paul Marchant said “Finding a way to ensure that workers in our supply chain in these countries are paid has been a priority over the past two weeks and we are pleased that this fund will provide relief to these workers.” With all stores currently closed and no online selling platform, this is no doubt incurring huge losses for the company but is a very necessary step in looking after their workers and protecting their brand image in the longer term. 

There’s lots of smaller Irish brands who are making a positive impact at the moment too - eco-commerce brand The Kind and jewellery brand Chupi are two examples of companies who are using this time to connect with their customers in an authentic way through social media, while observing government guidelines ensuring their staff’s safety. Both have increased their online presence and have given a voice to their businesses, while keeping the business moving through the crisis. 

It seems a new consumer environment is emerging, one in which people are taking note of how companies do business and adjusting their spending accordingly. People are more aware than ever that supporting small businesses mean good things for the brands and the economy. There’s also a feel-good factor that can’t be overlooked, people want to feel positive about their spending habits and engaging with brands that align with your view of the world is a win-win. This feeling of brand well-being isn’t just confined to small independents either - massive corporations like McDonalds and Pret a Manger have been praised for their early handling of the situation, putting their staff and customer safety ahead of profit, with astounding positive PR results. 

How brands act now is a signal to consumers about how they operate, and brands who show empathy and understanding will no doubt emerge from this period in better stead, ready to trade with a stronger customer base. This is the perfect time for brands to take a step back and think about their purpose and what they’re willing to do to follow through on their beliefs and promises. Profit above everything else is proving to be a business practice that has its limitations. As consumer habits evolve this approach isn’t good enough anymore. People care, and they want to put their money into brands that care too. For businesses, having a social conscience seems to be one surefire way to future-proof your brand.