This week, two important events are happening at Pure Branding — first, we are launching our newest market research study, The ROI of Transparency. Second, I am attending and speaking at SupplySide West.
This confluence of events provides me with a perfect platform to write about the importance of supply-side transparency. For supplier companies that produce ingredients, offer raw materials, or provide contract manufacturing for brands that sell to consumers and/or practitioners, transparency is worth considering. And it could be the single most important factor that determines the sale.
Let me explain.
Consumer Brands Being Pressured to Be More Transparent
Dietary supplement, functional food and personal care brands are selling and marketing to a consumer who is more aware of transparency and considers it valuable. Our study shows that 73% of consumers say that transparency is of value to them.
The study also confirms that a company’s level of transparency directly and positively affects sales. The study also goes into greater detail about the kinds of consumers who are demanding greater transparency.
So brands are paying attention to transparency and how to integrate it into their operations. The alternative is no longer an option, because in reality, we know that being perceived as non-transparent is actually damaging to a brand’s reputation, and a company’s bottom line. If a brand doesn’t have a transparency strategy, they’ll fall victim to competitors who do.
What Practices Should Be Most Transparent?
It takes a level of commitment and investment of resources for a company to become more transparent. Not only does this affect processes, but it also impacts corporate culture. It is not an easy “flip-the-switch” proposition.
Companies are often overwhelmed by the prospect of becoming transparent. Paralysis sets in. But all that is required is the first step. What should it be?
In our study, we determined which practices for a vitamin and supplement company, a personal care company, and a food and beverage company should be most transparent. We looked at: