Guest Post by Mark Wuttke, Principal, Wuttke Group LLC and GSN Board Member
Why are global retail giants paying a premium for ethically produced products? Quite simply, it’s a good business practice to protect their most precious asset: a carefully built brand.
To succeed in a rapidly changing marketplace, skin care companies must recognize increased consumer awareness of the detrimental effects of climate change, social inequities and chemical use. Consumers know a healthy lifestyle has a positive impact on their physical and mental health, and accordingly are choosing healthier products. Those skincare companies who wish to maintain the integrity of their “green”, “natural”, “organic” and/or “fair-trade” brands need to behave transparently and ethically, and demonstrate clear ingredient tractability and truthful labeling practices, else risk losing customers, market share and brand trust.
Clearly and quickly communicating product and ingredient information to the consumer is of chief importance. According to The Benchmarking Company's "The Age of Naturals" report (www.benchmarkingco.com, 61% of all women agree it’s difficult to differentiate between brands that are organic and those that are not. One consideration is to label cosmetics in a manner similar to food. A “Nutritional Facts” skincare label would help consumers quickly differentiate conscious, ethically grown, chemically clean, healthy skin care brands from their counterparts. Timberland instituted something similar at: www.timberland.com/shop/ad4.jsp and TS Designs, www.tsdesigns.com.
Proper documentation of “ecological foot printing”, “ingredient-miles”, “carbon offsetting”, “indigenous intellectual property rights”, and “corporate social responsibility programs” allow consumers to make informed decisions and understand the ingredient miles associated with their purchase. Additionally, offering a % of revenue and or profit to; a fund, research, or program, is another important way to demonstrate commitment to a regenerative lifestyle and allow consumers to be a part of a larger philanthropic movement.
In addition to concerns about Corporate and Social Responsibility, people recognize that the skin is the body’s largest organ and needs to be treated and respected accordingly. Aggressive quick-fixes and “cover ups” that over promise and under deliver will be swiftly replaced by truly nutritious “skin food” that nurtures and protects this vital organ.
After all, if you wouldn’t eat it, why would you even consider putting it on your skin?
This seemingly simple renewed awareness will dramatically change the competitive landscape of skin care, and those who genuinely rise to meet the demands of this increasingly educated consumer will be the future leaders of the skin care industry. GSN board member Mark Wuttke heads the Wuttke Group, LLC, a world class business development team with a focus on sustainable luxury, spa, boutique retail, organic luxury and the emerging category of eco-chic. Developing business globally, their clients are in the UK, France, Germany, Italy, Canada, Hong Kong, UAE in addition to the USA and Australia. www.wuttkegroup.com |
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