Sustainability and transparency deliver growth for direct-to-consumer brands

Image credit: Everlane

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eMarketer published an article exploring how direct-to-consumer (D2C) brands are attracting shoppers through sustainability and transparency.

“Brands that lift the veil on how they conduct business will naturally engender more goodwill. Transparency breeds trust, and shoppers are more apt to buy from brands they trust.”

(Source: Andrew Lipsman, eMarketer principal analyst)

Key stats:

  • More than half of 18-24 year olds are willing to spend more for sustainable products*
  • Three-quarters of US shoppers aged between 21-34 are looking to reduce their environmental impact by changing their purchasing habits**
  • Three in four US consumers ages 21 to 34 said they will “definitely” or “probably” alter their buying habits to reduce environmental impact**
  • More than a third of retail executives worldwide noted growth opportunities and cost savings as top reasons to adopt a strategy around supply chain sustainability***

(Source: *per January 2019 data from CGS, **December 2018 Nielsen report, ***January 2019 report from The Economist Intelligence Unit (EIU) and LLamasoft)

The modern shopper is turning the table on many industries through their conscious consumerism. And with brands like Everlane, Rothy’s, and Allbirds proving that “you can deliver profits while being good corporate citizens”, D2C brands have a competitive incentive to integrate sustainability into their supply chains and share this with shoppers.

“Brands that don’t build sustainability into their business model may find themselves increasingly irrelevant with this new generation of consumers.”

(Source: Andrew Lipsman, eMarketer principal analyst)

Why we find this interesting:

Insightful proof points collated here by eMarketer, which recognise the business value of sustainability in supply chains and transparency for brands. At the same time, shopper demands are shifting, particularly with next-generation shoppers calling for more transparency.

At Provenance, we are seeing this first-hand with innovative, direct-to-consumer brands taking the lead on sustainability. The Provenance platform makes it simple for brands to collate sustainability stories and communicate them to shoppers, thereby ‘lifting the veil’ to be honest about their business and the decisions made.

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About Provenance

Provenance is a platform that empowers brands to take steps toward greater transparency. With our software, businesses can share information and stories about products and their supply chains, including verified data to support those statements powered by blockchain. By connecting this information to things – in store, on pack and online – we can all discover the origin, journey and impact of our products to enable more positive, purposeful purchases.