The Rise of The Conscious Economy
As individuals, brands and businesses wake up, it’s important to identify those that are driven by genuine moral action and purpose, versus those that are motivated by moral aspirations and profit.
It’s 2024, and there's no such thing as business as usual. Over the last four years, we’ve all had to learn new skills to survive, adapt, hack, reinvent, realign and re-engage with ourselves, our work, and the world. And while this process has looked different for all of us, it’s left no one unchanged. Our normal routines have been rerouted, our sense of stability threatened, our beliefs challenged, our boundaries pushed. And perhaps above all, our individual purpose has been brought into question with a sense of urgency. What am I really doing here?
In every aspect of our lives, we’ve likely sensed a shift. We’re asking different questions, seeking deeper answers, working in a more intentional way, and surrounding ourselves with more inspiring people who get it. This isn’t just happening to you; it’s happening to anyone who is paying attention.
Individuals, businesses and brands are “waking up”. We’re seeing it play out in our culture on every channel, across every industry. Businesses are finding more meaningful ways to make an impact within their companies and in their communities; brands are weaving their values into their brand marketing; influencers are sharing unscripted, unfiltered content, appearing more vulnerable and connecting with their audiences on a deeper level; and customers are asking tougher questions and redirecting their dollar to the businesses that align with their values.
This sounds like a pretty awesome paradigm shift, right? Maybe the fallout from the pandemic has a silver lining, after all.
Well, yes and no.
The pandemic was a catalyst that accelerated an awakening of our collective conscience. But we’re still half asleep and groggy. Not all companies are truly doing better, even if they say they are. And not all consumers are really buying better, even if they say they do.
A shift is happening but change is slow. As the Conscious Economy gains momentum, it’s important to identify (and support) the businesses and brands that are driven by genuine moral action and purpose, versus those that are motivated by moral aspirations and profit.
But first, we must understand who these businesses are trying to win over in the first place.
Meet the Conscious Consumer
I’d argue that everyone expects their purchases to meet the basic requirements of quality and affordability. In the beauty and wellness industry, for example, that means we all want effective products that make us look better without breaking the bank.
Conscious Consumers are no different, but they are willing to pay a bit more for comparable performance and aesthetics if the product is sustainable, ethical, socially and environmentally responsible, and if the purchase feels morally aligned. This is great. It’s the direction we all need to be going in. We need to read labels, check third party certifications, understand ingredients, trust that the packaging is recyclable/compostable/biodegradable, and feel 100% certain that the product is safe for us, our families, and the planet. These attributes mean that the product was more expensive to make, thus the higher price tag. And the Conscious Consumer will pay it, but only if performance and aesthetics are not compromised.
By now, most companies understand the buying behavior of the Conscious Consumer. The realize this is a very lucrative consumer segment that’s only getting larger, smarter and louder. And they know that competing companies who have strategies in place to meet the demands of the Conscious Consumer are stealing market share.
Over the last several years, we’ve seen three things happen in response to the rise of the Conscious Consumer:
Greenwashing. This is when a company uses marketing, advertising and public messaging to appear more sustainable and environmentally responsible than it really is, and charging more for their “responsible” product. Companies in this camp are a’plenty, but consumers are calling them out. Their days are numbered.
Strategic investments, operational pivots and longterm environmental commitments from companies who are committed to net positive change. Companies in this camp are growing steadily, but it takes time to turn the ship around.
Breakthrough innovation that significantly reduce carbon footprint, shortens supply chains and leaves the planet better than they found it. Companies in this camp are the leaders in the Conscious Economy.
Creating The Conscious Economy
Any action that an existing company takes to course-correct their current operation and align with more environmentally friendly practices is valuable and worthwhile. We all must start from where we’re at, and take the first step in the right direction. And if all companies committed to doing this, we’d see and feel a positive shift.
But I believe that it will be new innovations coming out of new companies that will fuel the Conscious Economy. These innovations will offer the same or higher quality and experience at a competitive price, but with less waste and a reduced carbon footprint. As I work with entrepreneurs and founders of beauty and wellness startups, a few themes that are inspiring their new ventures are:
Technological breakthroughs using renewable energy sources in manufacturing process that reduces greenhouse gas emissions
Blockchain technology to trace ingredients, materials, and validate claims
Upcycled materials that replace plastic
Ingredient suppliers who are committed to regenerative agriculture, vertical agriculture, upcycling and clean biotech
Introducing new materials and formats that do not try to replicate existing ones, but that create a new experience and inspire desirability.
At the end of the day, whether we’re leading a company, creating a new one, or simply consuming products, we all play a role in creating the Conscious Economy. What small steps are you taking that help you wake up to what you are:
Creating.
Buying.
Eating.
Wearing.
Saying.
Supporting.
Believing.
Leaving behind.
Share your inspirations in the comments section below.