Barkley and Jefferies Release 2022 Brand Purpose Report: Purpose Up | Doubling Down in Tough Times

Rhea-AI Summary

Barkley released its third annual report, Purpose Up | Doubling Down in Tough Times, revealing 96% of consumers prioritize buying from purpose-led brands, despite economic challenges. Notably, 50% of consumers are willing to pay more for products addressing environmental, social, and governance (ESG) issues. The report found a strong correlation between brand purpose and market performance, with 41% of performance explained by 'Purpose Power'. Business leaders recognize climate change's impact, with 94% acknowledging its threat to their brands.

Positive

• 96% of consumers value purpose-led brands despite economic concerns.
• 50% are willing to pay more for products addressing ESG issues.
• 41% of market performance linked to brands leading with purpose.

Negative

• 94% of business leaders believe their brand will be affected by climate change.

New research shows 96% of consumers say buying from purpose-led brands is as important today as 12 months ago despite rising inflation rates and likely recession

KANSAS CITY, Mo.--(BUSINESS WIRE)-- Independent creative idea company Barkley released its third annual report Purpose Up | Doubling Down in Tough Times, a joint research study with Jefferies.

Research results show that consumer conviction for buying from brands that care about environmental, social and governance (ESG) issues remains strong with 50% of consumers willing to pay more for these products. Furthermore, there is an increased concern for issues like climate change, where a third of Americans report they have already been personally affected, and two thirds expect to be impacted in the near future.

Whole Brands — those brands full of purpose and action that match what it says and does internally with what it says and does externally — understand that purpose, sustainability and ESG initiatives are vital, strategic imperatives. In fact, Barkley research has found a positive correlation between market performance and brands that lead with purpose — 41% of market performance for brands in their study can be explained by what they call, Purpose Power.

“Consumers and other stakeholders have never been more concerned about the state of the world. In lieu of government action, they want their favorite brands to step in to help them live more sustainably and affordably,” said Lindsey DeWitte, Barkley EVP of Purpose + Sustainability. “Despite economic uncertainties, this is not a time to back off purpose-led strategies, it’s time to double down.”

Purpose Up | Doubling Down in Tough Times includes consumer insights, business leader interviews and expert contributions, all concluding that while business leaders are faced with unprecedented pressures in today’s often hostile market, purpose-driven leadership could provide an advantage in these difficult times.

The 2022 Purpose Up | Doubling Down in Tough Times insights show:

• 64% of consumers say buying from companies that take action on environmental and social issues is how they show support for an issue they care about. As a result, what we buy — and what brands we recommend to family and friends — is becoming a core part of Americans’ self-identity.
• 72% of consumers say working for a company that aligns with their values is important, a powerful advantage as companies compete in the era of the Great Resignation and quiet quitting.
• 94% of business leaders believe their brand will be impacted by climate change — and 59% say it already has or will in the next five years. Proof of actions to combat this are mutually beneficial for businesses, investors, consumers and employees.

Barkley also interviewed global brand marketers and industry experts for the report including: Dr. Wayne Visser, professor and author of “Thriving: The Breakthrough Movement to Regenerate Nature, Society and the Economy;” Dr. Victoria Hurth, fellow, University of Cambridge; Penny Andino, vice president of marketing, Justin’s; Benjamin Crook, vice president/general manager, Dressings & Condiments at Unilever; Kathleen McLaughlin, chief sustainability officer at Walmart; Randall Hopkins, global head of ESG SaaS Solutions, Nasdaq Corporate Platforms; Aidaly Sosa, head of marketing, US, Tony Chocolonely’s; and Danielle Jezienicki, senior director of sustainability, Grove Collaborative.

To read the full report or to speak with an expert, visit: https://www.barkleyus.com/articles/purpose-up-doubling-down-in-tough-times-report/

About the survey:

This consumer research (n=2,500) was completed by Barkley, the largest Certified B corp independent creative idea agency in North America. The 39 C-suite interviews were completed by Jefferies.

About Jefferies:

Jefferies (NYSE: JEF) is the largest independent, global, full-service investment banking firm headquartered in the U.S. Focused on serving clients for 60 years, Jefferies is a leader in providing insight, expertise and execution to investors, companies and governments. Our firm provides a full range of investment banking, advisory, sales and trading, research and wealth management services across all products in the Americas, Europe and Asia. Jefferies’ Leucadia Asset Management division is a growing alternative asset management platform.

About Barkley:

Barkley is an independent, creative idea company committed to knowing the modern consumer better than anyone because that’s the only way to build a whole brand. We do this through three idea centers: strategy, design and activation. Barkley is the largest Certified B Corporation ad agency in North America.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221011005154/en/

Jennifer Cawley

816-547-7933

jcawley@barkleyus.com

Source: Barkley

FAQ

What is the main finding of the Barkley and Jefferies report regarding consumer behavior?

The report found that 96% of consumers prioritize buying from purpose-led brands, even amid economic uncertainties.

How much more are consumers willing to pay for products that address ESG issues according to the report?

50% of consumers indicated they are willing to pay more for products that focus on environmental, social, and governance issues.

What correlation did the report find between brand purpose and market performance?

The report highlighted a positive correlation, stating that 41% of market performance can be explained by a brand's alignment with purpose.

What percentage of business leaders believe their brands will be impacted by climate change?

According to the report, 94% of business leaders believe their brands will be affected by climate change.