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Ethical clothing consumer and mix anthea missy solvay 2013 - oral defense

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A study of the ethical clothing concept, consumers, marketing mix for better positionning on eco-fashion market.

A study of the ethical clothing concept, consumers, marketing mix for better positionning on eco-fashion market.

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  • 1. Ethical clothing consumers - marketing mix for successful targeting2012 Towards graduation of Executive Masters in Marketing &Advertising Student: Anthea Missy Prof: Patrick De Pelsmacker Anthea.missy@gmail.com Connectwith me on Linked
  • 2. Introduction• Keywords >Ethical – sustainable – conscious – green – eco• Ethicalmarket X3 since 2000 in the UK• Ethicalclothingremains stable and a niche market (in UK 171 m£ - lessthan 1% of ethicalgoods’ expenditure – 0.5% of total 42 bn £ clothingexpenditure)• Few litterature on ethicalfashionconsumers and/or figures on potential/currentdemand• Ethical: for the good of the majority, making good to the majority with the least harm to other party• Ethical consumption : respects environment, human being from inception to floor• Ethical consumers: 30 % worldwide; 10 % of purists
  • 3. LitteraturereviewDRIVERS OF ETHICAL CONSUMPTION:• Ethical cultural sensitivity ( Hofstede ; Inglehart 2005 ) : Anglo-nordic cluster and Japan• Buying ethically => sometimes not buying unethical goods, boycotts, anti- consumption• Clothing => high involvement product, consumers tend to look for detailed information on what they wear• Ethical clothing> mostly ‘fairly treated labour’, ‘bio cotton’• Clothing carries symbolic meaning => signal values and personality to others• Ethical clothing buyers => for themselves (experience of meaning), for others (express identity)
  • 4. Litteraturereview - cont’dDRIVERS OF ETHICAL CONSUMPTION:• Ethical consumers: All age groups, gender, incomes, education level, but shared values• Post-materialistic values – need to be – quality orientation (GFK 2008)…• …Divided between need for peace and security vs. hedonism and pleasure• Barriers to buying ethical clothing : LACK OF AWARENESS AND INVOLVEMENT - NEGATIVE PERCEPTIONS OF BRAND AND STYLE ATTRACTIVENESS -LOW AVAILABILITY - MISUNDERSTOOD PRICING (COOPERATIVE BANK 2010, NICE 2011)• 25% people worldwide are willing to pay 10% more for ethical clothing (BCG 2008)• 30% of Belgians feel attracted by specialized ethical clothing shops while 30% do not believe in ethical claims (GFK 2008)
  • 5. Methodology2 Research questions:A) Who is the ethical fashion consumer ?B) What is the marketing mix that should be used to attract ethical clothing consumers ?
  • 6. Methodology1. Drawassumptionsregarding 4P’s expectations, based on litteraturereview2. Estimate 4P’s expectations of participants based on theiranswersraisedduring focus groups  Rank individual expectations towards 4P’s from 0-5  Considering attitudinal and behavioural gap to estimateethicalsensitivity and actual consumer behaviourQualitative research => Focus group : 13 participants (4 F, 9 M) –22 to60 yo.
  • 7. A) Whois the ethicalfashion consumer ?– consumer profiles  TWO-FACED EXPLORERS  TRENDY WHITE COLLARS  EMOTIONAL CHOOSERS  CONSCIOUS CONSUMERS  CULTURAL CREATIVES
  • 8. B) What is the marketing mix that should be used to attract ethical clothing consumers ? a) PRODUCT: CONSCIOUS CLOTHING CANNOT AVOID FASHION TRENDS AND STYLE Assumption 1: Ethical clothing products should at least satisfy same style and quality expectations than classic apparel goods. Ethical clothing should perform as well classic apparel on decisive buying criteria: comfort, quality, style Assumption 7: The first decisive buying criterion for target consumers is quality.  Core aspects are comfort, quality, style for classic/ethical apparel  No compromise on quality expected  Style is very important (casual of fancy)  Ethical clothing perceived as lacking style for most trendy consumers
  • 9. B) What is the marketing mix that should be used to attract ethical clothing consumers ? b) PRICING: WILLINGNESS TO PAY AND “ETHICAL” PRICE Assumption 3: Pricing for ethical apparel goods is perceived as too expensive compared to quality and style of classic goods.  Negative perception of quality/price ratio for ethical clothing  “Poor style” perception => no worth it paying a higher price for clothes which are not flattering silhouette and style  Often seen as “because it’s ethical it’s always far way over-priced compared to classic goods” Assumption 4: Pricing for ethical apparel cannot exceed 5%-10% compared to classic clothing goods of the same product category, in store.  Majorityagreedtheywouldpay up to 10% for ethicalclothing  Only if meeting quality, comfort, style expectations  Only 1 person gave higherprices for ethicalclothing (up to 100%)
  • 10. B) What is the marketing mix that should be used to attract ethical clothing consumers ? c) PROMOTION: LABELLING TO INCREASE AWARENESS AND ENGAGE, STORY TELLING TO DRIVE POSITIVE ATTITUDE AND PURCHASE INTENT Assumption 2 : Promotion is crucial to increase consumer’s awareness, positive attitude, and purchasing intent towards ethical clothing goods. The elements of promotion are labelling, transparency of production process and labour working conditions.  Labelling => clear and transparent information on production processes; signaling item in store among other classic goods (packaging + care label)  Information verification platforms => have insights on production processes via website, track accuracy of brand promise  Interact with brand and people => promote or get reviews from others customers, testimonies of workers’ life improvement.  Story telling => tell a story about how the product is ethically made and how it changes the world in a good way  Green washing? => decrease doubt
  • 11. B) What is the marketing mix that should be used to attract ethical clothing consumers ? d) RETAIL: DISTRIBUTION NEEDS TO BE SELECTIVE AND VISIBLE Assumption 5: Ethical clothing goods are not available in mainstream retail channels and it is difficult for consumers to find them.  Positive attitude towards ethical clothing  Not top of mind intent when buying clothing  Could be considered as an option if available in store => Access !  Efforts to find ethical clothing => which brand? Where to buy them?  Should be more accessible: promotion on brand + point of purchase
  • 12. B) What is the marketing mix that should be used to attract ethical clothing consumers ? e) POTENTIAL CONSUMERS: VARIABLE BEHAVIOURAL/ATTITUDINAL GAPS Assumption 6: Target consumers have high awareness of ethical issues as far as environment and working labour conditions are concerned.  All participants were really aware or labour working conditions in low-paid countries => does not necessarily imply buying more ethical products  Need the tools to trust brands  Good quality/price ratio Assumption 8: Daily ethical behaviour towards environment does not always involve ethical clothing consumption, and an moderate overall ethical behaviour can still be associated with ethical clothing consumption for some consumers.  Most ethically engaged consumers rarely bought ethical clothing  However they boycotted brands such as Nike
  • 13. Conclusion• Brands> lack of credibility• Ethical apparel > major stake for brands > need to clean their reputation• Most influential consumers > Cultural Creatives, and Two-Faced Explorers > social charisma – trendsetters – social influencers• Small adjustments on ethical clothing products > improve price perception and level of acceptability• Story telling and a transparent approach > co create products and concepts with consumers - active ethical involvement and community• Most studies partly help defining ethical good/ consumer/ segments.• Fail to address estimation in terms of purchasing power and needs…• ..And propose an effective marketing mix to capture these consumers• Drawbacks>Small focus groups (13 participants) interviewed which result in low significance of findings
  • 14. Thanks for your attention ! Q/A …
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  • 22. References Parenthetical Notes Works Cited Format Type of Resource J. Rosell, J. Moisander (2008); Ethical Dimensions of Sustainable Marketing: A Consumer Policy Perspective; European Advances in(Rosell & Moisander 2008) Consumer Research (Volume 8); Scholarly Article Retrieved from http://www.acrwebsite.org/volumes/eacr/vol8/eacr_vol8_96.pdf Bernd H. Schmitt; Experiential Marketing: How to Get Customers to Sense, Feel, Think, Act, The Free Press;, p 218; Retrieved from ( Schmitt 1999) Full Textbook http://books.google.be/books?id=d6TsNYeb1lUC&pg=PA258&lpg=PA258&dq=schmitt+experiential+marketing+a+new+framework &source=bl&o Shaw, D., Hogg, G., Wilson, E., Shiu, E., & Hassan, L. (2006). Fashion victim: the impact of fair trade concerns on clothing choice. (Shaw et al. 2006) Full Scholarly Article Journal of Strategic Marketing, 14, 427-440; Retrieved from http://strathprints.strath.ac.uk/7412/ Shim, S. (1995). Environmentalism and Consumers Clothing Disposal Patterns. An Exploratory Study. Clothing and Textiles (Shim 1995) Full Scholarly Article Research Journal, 13, 38-48; Retrieved from http://ctr.sagepub.com/content/13/1/38.full.pdf+html M. Joseph Sirgy,Dong-Jin Lee, J.S. Johar; John Tidwell Effect of self-congruity with sponsorship on brand loyalty ; Journal of (Sirgy and Su, 2000) Full Scholarly Article Business Research 61 (2008); Retrieved from http://www.cerog.org/lalondeCB/CB/2007_lalonde_seminar/sirgy.pdf (Souad HMida Ph.D, Souad H’Mida; DETERMINANTS OF PRO-ENVIRONMENTAL BEHAVIOURS WITHIN INDIVIDUAL CONSUMERS; Retrieved Scholarly Article 2008) from http://www.up.edu.mx/files_uploads/15025_turkey.pdf A. Tallontire, E. Rentsendorj, M. Blowfield (2001) ; ETHICAL CONSUMERS AND ETHICAL TRADE: A REVIEW OF CURRENT (Tallontire 2010) LITERATURE; Natural Resources Institute University of Greenwich;Retrieved from Public Consumer Report http://www.nri.org/publications/policyseries/PolicySeriesNo12.pdf J. Thøgersen (2010); Country Differences in Sustainable Consumption: The Case of Organic Food, Journal of Macromarketing, (Thøgersen 2010) Scholarly Article 30(2): 171-185. Retrieved from http://projectduurzaamvoedsel.files.wordpress.com/2011/10/country-differences-in-sustainable.pdf T.Mainieri, E.G.Barnett, T.R.Valdero, J.B.Unipan, S.Oskamp (1997) ; Green buying: the influence of environmental concern on (Tina Mainieri 1997) consumer behaviour. The Journal of Social Psychology , 137(2), 189-204; Retrieved August 21, 2012, from Full Scholarly Article http://www.tandfonline.com/
  • 23. References Parenthetical Notes Works Cited Format Type of Resource Ethical Fashion Forum 2011; THE MARKET FOR ETHICAL AND SUSTAINABLE FASHION PRODUCTS, Briefing Report 2011; (TNS 2008) Retrieved from http://www.ethicalfashionforum.com/assets- Public Consumer Report uploaded/documents/Market_for_sustainable_fashion_Briefing_2011.pdf L. Percy, R.Rosenbaum-Elliott (2012); Strategic Advertising Management, Oxford University Press, 2012; p. 164; Retrieved from http://books.google.be/books?id=APuFBqYAXr0C&pg=PA164&lpg=PA164&dq=onlookers+principled+pioneers&source=bl&ots=zg Marketing Textbook (UK 2007) DY4cTkI3&sig=b-hV Online Article See (Marketing Magazine 2007) Cooperative Bank (2010); Ethical Consumerism Research; Retrieved from http://www.ipsos- (UK 2010) Public Report mori.com/Assets/Docs/Archive/Polls/coop-csr.pdf United Nations (1987); World Commission on Environment and Development. "Our Common Future, Chapter 2: Towards (UN 1997) Public Report Sustainable Development". Un-documents.net. Retrieved from http://www.un-documents.net/ocf-02.htm Jem Bendell & Anthony Kleanthous for WWF (2007); Deeper Luxury Report; Retrieved from (WWF 2007) Public Report http://www.wwf.org.uk/deeperluxury/_downloads/DeeperluxuryReport.pdf Yuniya Kawamura (2005); Fashion-ology: An Introduction to Fashion Studies; Berg Editions, pp. 23-28; Retrieved from(Yuniya Kawamura 2005). Full Textbook http://books.google.be/books?id=LUWTJWXZ2QQC&printsec=frontcover#v=onepage&q&f=false Going green: the future of Luxury (2009) ; The Luxury Channel; Retrieved from Video documentary http://www.youtube.com/watch?v=WIx3_22A4Io&feature=related

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