Mumbai: In the ever-evolving landscape of business, a remarkable transformation is taking place as companies in India and around the world recognise the importance of aligning their operations with social responsibility and purpose-driven initiatives. This paradigm shift marks the ascent of purpose-driven brands, where businesses intertwine their core values with impactful causes to resonate with customers who seek more than just products and services – they desire a sense of purpose and positive societal impact.
Consumer behavior has undergone a significant transformation in India as well. Modern consumers are not merely seeking value for money; they are increasingly concerned about the ethical, environmental, and social implications of their purchasing decisions. This shift in consumer expectations has spurred companies to reevaluate their strategies and embrace a more socially responsible approach.
A survey conducted by Nielsen revealed that 73 per cent of Indian consumers are willing to pay more for products and services provided by companies committed to positive social and environmental contributions. This statistic underscores the economic potential of purpose-driven brands that can capture the attention of this conscientious consumer base.
Purpose-driven marketing entails conveying a company's mission, values, and commitment to social responsibility as integral aspects of its branding strategy. This approach aims to forge an emotional connection with consumers by highlighting the company's endeavors to contribute positively to society and the environment. Brands that adeptly execute purpose-driven marketing can anticipate enhanced customer loyalty, brand affinity, and market influence.
Amul is a prime example of a purpose-driven brand. With its "Amul for India" campaign, the company has celebrated India's achievements across various domains, and its advertisements often feature messages of national pride and unity. By aligning its brand with the aspirations and emotions of Indians, Amul has not only secured a special place in the hearts of its consumers but also solidified its status as a purpose-driven brand.
Industry-Specific Insights
1. Sustainable Fashion
In India's fashion industry, sustainability is emerging as a crucial focus area for purpose-driven brands. FabIndia, a leading retailer of handcrafted textiles and home furnishings, places a strong emphasis on traditional craftsmanship, fair trade, and rural development. By promoting sustainable livelihoods and providing a platform for local artisans, FabIndia resonates with consumers who prioritise ethical consumerism.
2. Technology with a Social Impact
Even the technology sector in India is experiencing a paradigm shift. Companies like Wipro are embedding social responsibility into their business ethos. Wipro's "Sustainability and Social Responsibility" initiatives span various areas, including education, healthcare, and environmental conservation. Through these initiatives, Wipro not only contributes positively to society but also showcases its commitment to making a meaningful difference beyond profits.
3. Food Industry
The Indian food industry is witnessing the rise of purpose-driven brands that prioritise health, sustainability, and ethical practices. Paper Boat, a famous Indian beverage brand, connects with consumers through nostalgia and cultural heritage. By using traditional recipes and natural ingredients, Paper Boat not only offers unique beverages but also preserves traditional flavors, contributing to a sense of identity and shared memories among its consumers.
4. Corporate Social Responsibility
Purpose-driven brands often integrate Corporate Social Responsibility (CSR) programs as a means of giving back to society. HUL (Hindustan Unilever Limited), a multinational consumer goods company, is an exemplar in this domain. Through initiatives like Project Shakti, HUL empowers rural women by providing them with entrepreneurial opportunities as direct-to-home sales agents. This not only contributes to women's economic empowerment but also enhances the company's social standing.
The surge of purpose-driven brands represents a significant shift in the business landscape, both globally and in India. Companies are recognising that their success is intertwined with the well-being of society and the environment. By embracing social responsibility, Indian brands attract conscious consumers, catalyse change, and set new benchmarks for the industry.
As consumer demands continue to evolve, purpose-driven brands in India are poised for success. By aligning their values with impactful causes, these brands are fostering more profound connections with customers, leaving a lasting impression, and demonstrating that profitability and purpose can coexist harmoniously, thus reshaping the Indian business landscape for the better.
This article has been authored by Thinkin Birds founder Bhavik Mehta.
