Embracing Transparency

While customer demand is growing towards more sustainable products and services, companies are becoming more innovative than ever and are communicating their sustainable practices to the consumers.

In a world where businesses are increasingly using green washing marketing techniques, small and medium companies have the opportunity to truly stand out by embracing transparency.

A change in consumer behaviour

Since the Covid-19 pandemic, and its restrictions, people started focusing on the environmental impacts of their activities and consumption. Even if consumers had already begun prioritising sustainability before the pandemic, the PricewaterhouseCoopers's (PwC) June 2021 Global Consumer Insights Pulse Survey has shown that half of all consumers surveyed around the world say they have become more eco-friendly since the beginning of the Covid-19 pandemic.

PwC's survey also suggests that eco-friendly consumerism will persist and deepen. Business leaders, analysts and retailers have been paying attention to their customer's behaviour, which currently evolves towards a growing demand for eco-friendly products and services. PwC's consumer data will encourage businesses to continue launching "green" innovations for production, packaging and delivery.

We see that the pandemic accelerated the quest for more sustainability in products. However, experts believe this change in consumerism should no longer be considered a trend but an inflexion point.

Consumers do not seem inclined to backtrack on their environmental commitments, and neither should companies. In light of worsening climate change, companies will want to continue focusing on promising innovations while emphasising sustainability.

The dangers of greenwashing

With the increasing demand for sustainable products and the pressure by shareholders for greater profitability, some companies may be in doubt whether to communicate in all honesty or fall to the temptation of using greenwashing as a marketing strategy. Those actions imply deceiving the consumers intentionally with false claims about their sustainable practices.

Distrust among the customers is rising due to intensive environmental marketing with very little standardisation to guide them. The consumer is becoming more educated about the difference between companies that pretend to be responsable and those who actually engage in responsable initiatives.

Even if nowadays consumers are becoming more sceptic towards eco-friendly production, businesses still have a unique opportunity to showcase sustainable, energy efficient or biodegradable products, services or practices, through transparency.

The need for transparency

Because of their growing concerns around ethical sourcing, data security and environmental impact, costumers crave transparency about/around the products they buy. As Forbes magazine said in May 2021, "Transparency is no longer an option; it’s a must".

Even if this change in trend is forcing companies to adjust, small and medium businesses (SME) now have the opportunity to compete with big brands. Indeed, with transparency, SMEs have an advantage thanks to shorter supply chains, local sourcing, and smaller overall activities.

Our solution

Increasing transparency does not mean opening up a company's entire operation to the eyes of the public. This is where Gaupa Labs comes in, we help companies figuring out what their customers want to know, understanding what can be shared with them, and identifying the best way to communicate this information to them.

Thanks to the immutability and security inherent to blockchain technology, it will be easier than ever for companies to take control of their end-to-end processes and take the first step towards transparency. Gaupa Labs helps businesses showcase their efforts regarding sustainability, and thus build trust and loyalty with the consumers.

If you want to know more about Gaupa Labs, feel free to contact us.