SA, Brazil consumers becoming aware of social business

Traditionally the super wealthy often ignored (or insulated) themselves from the realities surrounding them and, as some of the more influential consumers in the market, brands simply followed their lead.

However now, with the emergence of a new consumer class, armed with readily available information, the demand for brands that take a stance and help solve social issues is becoming increasingly higher. This is now becoming apparent in regions around the globe, from Africa to markets across South and Central America.

Consumers favour good corporate citizens

Consumer behavior research conducted by the Bureau of Market Research (BMR) indicates that 47.4% of South Africa's metropolitan consumers prefer products or services from good corporate citizens - even when they are more expensive. A recent Deloitte study found that 57% of Brazilian customers believe it is acceptable for a business to profit from an innovation that might positively influence society, compared to South Korea (24%), Singapore (34%) and the UK (39%). Another study, from Nielsen, found that 49% of consumers in South and Central America are willing to pay more for products and services from companies that give back to society. This is significantly higher than in Europe and North America, where only 33% are willing.

So how are brands responding to this? Here in South Africa, Woolworths identified and communicated this type of commitment to social good in its brand communication. Its 'Good Business Journey' is a well-articulated plan that looks to contribute and engineer social change in six key areas of energy, water waste, sustainable farming, sustainable fishing, transformation and social development. This ranges from providing organic fruit and vegetables in its stores to contributing millions of rands to social development.

The results were positive; it has invested in its own customer research and tracking which indicated the value of its strategy. The studies revealed that customers were not only aware of the programme but that they "found security in knowing that the products that they were purchasing were safe, healthy, sourced ethically and without harm to the environment" (Woolworths, Good Business Journey Report 2011). The World Economic Forum later named the company as one of the 16 sustainability champions in the developing world.

Brazil follows

In Sao Paulo, Brazil, mobile phone company Vivo sponsored a soccer tournament where 350 people from across the city took part. The 20 teams that played in the Santo Antonio Park Cup were made up of local residents who had volunteered for activities that benefited the community. Players had to devote time to cleaning up their community, painting the local library and looking after other public facilities before they could take part.

A few months after this initiative, We Will Rock, an organisation that coordinates social initiatives for Brazilian youths, was one of five start-ups to receive support from PepsiCo as part of the brand's incubator program PepsiCo10. The organisation rewards youth participants with tickets to rock concerts or other cultural activities where one day's work earns one ticket.

Brands such as Diageo-owned Scotch whisky label Buchanan took advantage of this trend when it developed its 'Tiempo Para Compartir' (Time to Share) initiative last year. From March to May 2012, it asked young people in Bogota, Mexico City and Caracas to participate in this programme, which allowed participants to sign up via Facebook for projects such as neighbourhood clean-ups and local construction. Once complete, the company offered a free concert to participants, featuring The Smashing Pumpkins.

View trends in social conscience

So, whether you are developing a product for consumers here in South Africa, Brazil or in other emerging markets, remember that there is a shift going on: a global shift, where brands can take a stand, make a difference and eventually reap the benefits.

For more on the 'Mi Casa Es Tu Casa' (my house is your house) trend and how it is manifesting itself in South-Central America, go to www.trendwatching.com/trends/micasaestucasa/. This is just one of many trends that will be featured in a South-Central America Regional Report, available for downloading now. For more, go to www.trendwatchingreports.com/south-central-america/overview/.