Digitization has impacted fully the labor market and, with it, the culture of those who are part of the business productive fabric today: the digital natives. The millennial it has changed the way it consumes and the way it consumes, so that companies have to adapt to a new model of winning over the user.
This generation no longer carries cash in the portfolio. In fact, according toatos offered by Due.com, one in four young people carries less than five dollars in cash, while eight out of ten make their purchases and pay their bills through the mobile phone. The millennial Do not call to order food at home, but use Glovo or Deliveroo apps to simplify the chain.
These changes of habits and paradigms are transferred to their social commitment. In a study carried out by Fast Company, it is affirmed that, seven out of ten young people would be willing to receive lower salary for a job in a company responsible with the environment. These people assure that the social character of an organization is key when deciding if it stays in it in the long term. And even more, three out of ten claim to have left their job because of the lack of a sustainability plan by the company.
Technology as a catalyst for conscious capitalism
New technologies and social networks have become the main information flows that this generation consumes. Thanks to the scope of 3.0 partnership, the consumer has more power than ever, modifying their perception of the world and transforming their idiosyncrasy. Therefore, the digital transformation is not only changing the way companies connect with their target audience, it is also changing the demand demanded by the consumers of the companies themselves.
According to the Cetelem Observatory of Consumption Europe 2018, 72% of young people between 18 and 35 years old, look for the products online before buying them, which gives them greater access to the specifications of the products: where they have been manufactured, with what materials, what the company is doing your benefits, etc. Companies, therefore, see that the labels that define their young audience are ethics, social and environmental awareness, and responsible consumption.
The ICTs and the RRSS are serving as a tool and speaker for the millennials they can demand from a position of strength what they want from the companies. Not only do they want their products, but companies identify with their values in such a way that, when they consume, they are part of a value chain and that, both of them, contribute to improving our welfare state.
The response of companies to social demand
Determined to win the consumer, companies, little by little, begin to change their social economic model to produce a positive impact on society, thus generating a positive experience in the customer. I've named these types of companies G.I.P. (generating positive impact). One of the sectors where you can see these changes is the fashion industry. With the increase in the labor situation of workers in the textile industry in Asian countries, H & M created in 2013 a five-year plan called 'fair wages', with the aim of guaranteeing the situation of its workers according to the cost of living of each country. To date, H & M has implemented this policy in 40% of its factories (where 80% of its products are manufactured and where 58% of its employees work). This supposes an improvement of the salary conditions in 655 of its productive centers.
As far as pollution is concerned, the millennials They are committed to the environment. This is why trends such as the carsharing or the demand for electric vehicles. Toyota is one of the best examples of how a manufacturer has managed to respond to the social demand against pollution effectively and quickly. Under the motto Toyota Environmental Challenge 2050, whose objective is to reduce the impact of their vehicles on the environment while still offering affordable products. Thanks to its efforts, the Japanese giant has been recognized as one of the most respectful companies with the environment, being located by Newsweek among the 5% of the most sustainable companies in the world. So much so that, between 2025 and 2030, all vehicles in the Toyota and Lexus ranges, worldwide, will be available only as electric vehicles or with the electrified option.
Companies and consumers are facing a new consumption model, strongly marked by the values that both represent. If companies want to earn their users' pockets, they must understand and adapt to the sustainable model based on the experience they demand. If the user does not want to lose this position in which he can make a positive change, he should not stop using the means at his disposal to generate a message that will be in the society and in the way of consuming.
Daniel Marote is an expert in marketing and digital transformation, and managing partner of Hydra.Digital