Corona was barely over before gloomy reports began about the supply chain crisis, inflation, sky-high energy prices and recession making its way into the lives of ordinary Danes. And there is no doubt that the crisis and its potential consequences worry the Danes – consumer confidence is at a historic low, and 7 out of 10 are worried about further price increases (PwC 2022, Danmarks Statistik 2022). At the same time, it has had the expected consequence that price currently trumps sustainability – evident when consumers have to choose their carrots in the supermarket (Deloitte 2022). A third of Danes answered in a new survey that they have bought fewer or significantly fewer climate and environmentally friendly goods as a result of recent price increases in society (Børsen 2022).
But does increased price sensitivity among consumers mean that companies should turn a blind eye to UN Sustainability Development Goals, development of sustainable products and, not least, sustainable communication? The short answer is no.
Price-focused strategies may have a short-term effect on the bottom line, but the fact remains that sustainability has become a ‘license to operate’. Both consumers, investors and employees expect companies to contribute to the green transition regardless of what the economic landscape looks like. As a company, it is therefore wise to think long-term and invest in building a brand that shows that you share responsibility for the environment. You have to remember that inflation and energy crises will pass, while the climate crisis will persist.
In times of crisis, we often see that marketing is one of the first things to come under fire when companies feel compelled to cut costs. However, this is a flawed approach. All studies show companies that maintain or even intensify investments in marketing in times of crisis are also the ones that come out stronger on the other side. It’s about having a fundamental understanding that branding is a long-term investment that can be expensive to turn off.
In times of crisis, advertising prices fall and there is less competition for attention in the market – many competitors simply stop spending. This gives your company a unique opportunity to steal market share and develop your brand position. This is when sustainability should be an essential part of long-term branding. That’s why you should use times of crisis to fuel your sustainable transformation in order to remain relevant – both in the present and on the other side of the crisis. Consumers will respect your brand more if you dare to stand by your principles, even when energy prices and other expenses take over.
There are various measures that will kick-start your green sales and marketing strategy:
If you are curious about how you approach your sustainable marketing in a time of crisis, please contact Sunrise. Our experts in the field would love to spar about ideas for both circular practices, green marketing, and long-term marketing plans. At Sunrise, we see it as essential that the green agenda is not forgotten but strengthened – even during times of inflation.
Consultant – Insights & Strategy
Tlf.nr: +45 31 51 65 95