The Zeno Group has released a global study which analyses the business value of brands having a well understood 'purpose'.
Among the 8,000 global respondents, 1,000 were from India. Other markets the respondents were from included Canada, China, France, Malaysia, Singapore, United Kingdom and United States.
As part of the study, consumers rated their perceived strength of purpose of more than 75 brands. Zeno then performed an analysis to understand the relationship between consumers’ perceptions of a brand’s purpose and their attitudes and intended behavior toward them.
For Indian consumers it is extremely important (99 per cent) that the brands they engage with have a clear and strong brand purpose. The global average was 94 per cent. Indians also believe that 60 per cent of the brands and companies in the world today have a clear and strong brand purpose. This is at 37 per cent globally.
The most important element of a purposeful brand or company according to Indians is one that makes products/services that reflect the needs of the people today. Globally, the most important element for a purposeful brand is whether the employees are treated well irrespective of the rank or level. Indians also believe that a company that makes superior products/services and creates jobs in local communities are important for a purposeful brand or company.
90 per cent of the consumers believe that they engage with a brand or company because it makes products or service that represent a good value. The least important element for them is that brand endorser, with only 53 per cent stating that they would engage with a brand depending on the endorser. In comparison, 74 per cent of them would pick a brand or company if it is endorsed by people who they trust.
87 per cent of the Indians believe that companies should only earn a profit if they have a positive impact on the world.
31 per cent of the consumers have moved to a different brand when they have disagreed with a brand or a company's overall purpose, values, or behaviours.
Rekha Rao, MD, Zeno Group India, said, “India has a long and strong tradition of companies and brands acting with purpose beyond profit. Today, we can back that up with clear proof that purpose and profit are closely related. Every company needs to ask itself not just what’s the ROI of a commitment to purpose, but also what are the risks and costs from not taking it seriously, or relying purely on philanthropy.”