GF Issue 54

Greenmeans go Why many franchises are well positioned to be influential market leaders when it comes to setting industry standards for sustainability alancing growth and profit with sustainability is the business dilemma of our age, as we witness devastating effects of climate change the world over. This shift in thinking has been driven by consumers, who are increasingly aware of the effects of the products and services they buy, either shifting to more sustainable alternatives or publicly pressuring companies to make changes in the direction of sustainability. Franchising stands to gain significantly from adopting greener practices and marketing these benefits to consumers, as its robust systems, supply chains, marketing power and tech developments enable franchise brands to be influential leaders in their sectors. Why consumers care Many modern consumers don’t silo issues like they may have done in the past – and they certainly don’t expect to purchase environmentally-damaging products or services only to offset their guilt with a donation to charity. Much of the drive for sustainability has been driven by Millennials and Gen Z, who both hold climate change as one of their top three concerns according to a Deloitte survey, with it topping the list for Gen Z. These are the generations that will populate boardrooms and executive meetings in the future, guiding businesses in the direction of sustainability, because it’s what they know and they know it’s what their customers want. Volkswagen suffered enormous costs (to the tune of £38bn) because it tried to ‘greenwash’ customers with insincere sustainability measures. The brand still hasn’t recovered its pre-scandal share valuation and ended up damaging dealers, shareholders and even the image of Germany as a great car manufacturing nation. Deloitte’s survey into consumer views on sustainability found that 28% of respondents stopped purchasing certain brands or products because they had ethical or sustainability-related concerns about them. That represents a significant portion of people who feel that they can no longer support a brand that does not align with their values. Consumers’ wants and needs are also translating into franchise concepts. There are a variety of sustainable and green franchise concepts that have popped up in recent years. One uses plastic waste material to create driveways, and many more are adopting greener practices to reduce waste and environmental impact. Consumers have always wanted to connect to a brand’s personality, and that is no different today. The only difference is that modern consumers place significantly more value on sustainability than previous generations, and companies are responding accordingly. Current sustainable brands The world of franchising has recognised the importance of sustainability, both for the sake of the planet, and as a strong aspect of a brand’s appeal. Often, the most polluting industries those which the average consumer has no interaction with. Brands like FASTSIGNS are well known in the business world, but maybe not so much among the general public. Printing can be a resource heavy task, but FASTSIGNS has invested in using as much recycled materials as possible and using eco-solvent inks. This isn’t new for FASTSIGNS either, in 2018, a local manager in North Little Rock, B INS IGHT 66 GLOBAL FRANCHISE | ISSUE 8.2