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Trends

Two of the major trends of the past decade that have contributed to the rise in the demand for eco-friendly and health conscious products have been sustainability and health & wellness.


What Consumers Want

A survey published by Nielson a few years ago revealed that 66% of consumers are willing to spend more on a product if it comes from a sustainable brand. With millennials, the percentage was even higher at 73%.

Another report by Unilever last year indicated that 88% of the shoppers surveyed in India “feel better when they buy products that are sustainably produced.”

The Nielson Global Health & Wellness Survey of 2015, which polled 30,000 respondents from 60 countries revealed that 65% were cutting down on fats, 62% were cutting down on chocolates and sugar and 57% were opting to eat more natural and fresh foods, in an attempt to become more healthy.

What do all these statistics tell us? In a nutshell, that most consumers today want the companies they buy from to incorporate:
a) sustainable, ethical and responsible practices and,
b) practices that help the consumer stay healthy.


This article examines how these two prevailing trends have pushed some companies – including giants in their respective industries – to alter their strategies to fall in line with the demand for sustainable and health conscious practices and/or products.


SUSTAINABILILTY

High street fashion brands like H&M, Zara and Marks & Spencer have begun to offer recycling opportunities in their stores globally, where customers can trade in their discarded clothes for in-store discount vouchers. Some companies recycle some or all of the clothes to actually make new items of clothing out of them, while others hand over the clothes to charitable organisations that distribute them to people in need. In India, consumers can now recycle clothes at H&M and Marks & Spencer stores across the country.





In this example, large global brands have been pushed to come up with ideas that tie in with their consumers’ desire to contribute to sustainability and/or the ‘feel good’ factor that accompanies it.


HEALTH & WELLNESS

When you think of health conscious brands, McDonald’s is not the first name that comes to mind. But earlier this year, the fast food chain announced that its Indian menu would now offer healthier options, with the company tweeting “We’re listening to all health-conscious people out there.”

Some of the changes the company has made to its Indian menu include:
– Whole grain, instead of refined flour wraps
– 25% more dietary fibre in its patties
– 40% less oil in its mayonnaise
– A reduction in the fat content of its Soft Serve cone, which is now 96% fat free.





This is another example of a global giant engaging in activities quite far removed from their regular practices, in an attempt to retain market share and offer new products that are in tune with the changing times.

Globally, many other fast food chains such as KFC, Burger King and Taco Bell also offer healthier menu options in addition to their regular menus.


Is It Enough?

Admittedly, many companies, including some of the ones mentioned in this article, have come under the scanner for merely ‘greenwashing’ and not ensuring that their overall strategy is truly in line with greener (or healthier) practices. Some companies have also been accused of using such strategies to merely charge higher prices and/or to encourage consumerism.

But the moves made by these companies do at least indicate a step in the right direction.

Any company that wishes to survive in the market must sit up and take notice of what its consumer wants – which is exactly what these examples indicate has happened.

One hopes then that the moves highlighted above are just the beginning and that it is only a matter of time before such companies begin to innovate and incorporate long term strategies that are truly sustainable and healthier.





The examples also highlight the power that lies with the consumer to bring about innovation. If enough consumers demand products and practices that are sustainable, ethical and responsible, companies who wish to survive will have no choice but to figure out a way to supply them…a win-win situation for the consumer, the company and our planet at large.




Is it time to change things at your company? Zeitgeist uses the platform of design thinking to develop innovative, long-term solutions that are relevant today as well as in the future. Reach out to us for all your Design Strategy and Design Management requirements.



Gitanjali Singh Cherian
Marketing Manager




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Design Strategy

In the first of our series on co-creation, we explored in theory why co-creation is the most effective way to foster innovative thinking and design.

In this post we focus on the practical application of co-creation. We examine some of the forms it has taken in companies that have realised its synergetic potential:


1. BUSINESS AND BUSINESS

Apple and Microsoft



Approach: Co-creation for improved efficacy and utility.

Method: Despite the differences and tumultuous past that exist between these two giants of the computer industry, Apple and Microsoft have been able to put the customer first in many instances and join forces to create products like Office for Mac users and iTunes for Windows users.

Value added: Users get the best of both worlds, without having to give up their favourite software on whichever platform they prefer. Choice and decision are thus left in the hands of the consumer, making this a great example of co-creation, even in the midst of intense rivalry.


2. BUSINESS AND CUSTOMER

Nike ID



Approach: Co-creation for personalisation.

Method: Nike ID is a feature that allows online shoppers to completely customise their pair of Nikes, from the style of the strap, right down to the colour of the lining inside the shoe. It even allows for personalised lettering (a name or word, for example) to be added on the shoe. Before making the final decision to purchase, the customer has the option to share the creation on social media for further inputs.

Value added: In an age where self-expression, customised products and the desire to stand out in a crowd are highly valued commodities, Nike has developed a platform to address those needs by putting a part of the product design process in the hands of the customer.


3. BUSINESS AND SERVICE PROVIDER

Ola Auto



Approach: Co-creation to organise markets.

Method: Ola has partnered with auto rickshaw drivers in some Indian cities to allow customers to book autos using the same Ola app that they use to book cabs.

Value added: The convenience of booking an auto ride without having to physically scour the area or haggle is a huge benefit to commuters. Once a driver has indicated his willingness to take up the journey via the app, the customer is intimated and picked up from his doorstep. Rides can also be tracked on the app and location details shared with others, improving the safety of the user.


4. BUSINESS AND INDIVIDUAL ENTREPRENEURS

Airbnb



Approach: Co-creation to empower individuals.

Method: In the case of AirBnB, multiple partners work together to co-create a unique product for the end user:
– AirBnB provides a platform for hosts to display their properties and prospective guests to view the same.
– AirBnB pays freelance photographers around the world to provide high quality photos of the properties, to aid in the guests’ decision making.
– Payment processors enable the financial transactions involved.

Value added: The unique experience of staying at a local home and enjoying the local culture at prices that are, more often than not, lower than those of hotels.


5. BUSINESS AND RESEARCHER

Apsara Drone



Approach: Co-creation for social impact.

Method: Start-up firm Otherlab, in collaboration with and funded by The Defense Advanced Research Projects Agency (DARPA), is working on designing an entirely biodegradable lightweight drone, using transient electronics and material made out of a mushroom based substance.

Value added: The drone has the potential to effect large-scale social impact. It could be used to deliver food and medicine to disaster hit and war torn areas and then self-destruct, with minimal damage to the environment.



These are just a few examples to illustrate that co-creation can take many forms and isn’t restrictive in nature. It requires that the needs of the end user always be the focus and it requires an open mind, perhaps best summed up by Tim Cook…

“Apple and Microsoft still compete, but we can partner on more things than we compete on.
And that’s what customers want.”

– Tim Cook, at the BoxWorks Conference, 2015.


Have you come across any great examples of co-creation? Share them with us in the comments section below.





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