Ethical clothing marketing mix

Ethical clothing consumers -
marketing mix for successful
targeting
2012 Towards graduation of Executive Masters in Marketing &Advertising
Student: Anthea Missy
Prof: Patrick De Pelsmacker

Anthea.missy@gmail.com
Connectwith me on Linked

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

Litteraturereview
DRIVERS 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)

Litteraturereview - cont’d
DRIVERS 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)

Methodology

2 Research questions:

A) Who is the ethical fashion consumer ?

B) What is the marketing mix that should be
used to attract ethical clothing consumers ?

Methodology

1. Drawassumptionsregarding 4P’s
expectations, based on litteraturereview

2. 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 behaviour

Qualitative research => Focus group : 13 participants (4 F, 9 M) –22 to
60 yo.

A) Whois the ethicalfashion consumer ?
– consumer profiles

 TWO-FACED EXPLORERS

 TRENDY WHITE COLLARS

 EMOTIONAL CHOOSERS

 CONSCIOUS CONSUMERS

 CULTURAL CREATIVES

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


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%)

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

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

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

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

Thanks for your attention !

Q/A …

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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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