Green: the new colour of branding

Irrespective of whether a Copenhagen declaration incorporates a legally binding climate change agreement or not, the event has proved to be a huge green branding exercise. For example, 65% of the food and beverages served are organic. It comprises fair-trade products like tea and coffee. And shops at the venue stock products with eco-marks like the EU Flower, Nordic Swan and Danish organic label.

Though it is still early days, smart marketers in India are talking about the benefits of green branding, too. "The increased awareness as a result of the event is likely to reinforce the preference of consumers for green products and services," said Samsung India deputy managing director R Zutshi.

That upswing is already evident, according to a slew of recent surveys. For example, Indian consumers—followed by Brazilian and Chinese—topped the Greendex 2009 survey, which measures how green consumer decisions are. Americans and Canadians dropped to the bottom of the survey, conducted by National Geographic Society and polling firm GlobeScan.

A Goodpurpose Consumer Study corroborated those findings. It found that while 88% consumers believe they should make a contribution to a better environment, 85% consumers would change their favourite brands and lifestyle habits to make this world a better place.

Environment protection topped the list of priorities among 92% consumers. "There is value to green branding. Even though a consumer may not be willing to pay a premium for green, all things remaining the same, it works for the brand in the marketplace," said Wipro Technologies chief marketing officer Jessie Paul. Wipro bagged the second spot globally after Nokia in the recent Greenpeace Guide to Greener Electronics, with compatriot HCL ranked fifth.

That's not to say that no consumers are willing to pay a green premium. Though they believe green products are costlier than others, a majority of Indians (78%), Chinese (73%), and Brazilians (73%) are willing to buy them, according to a 2009 Green Brands survey. The top ten green brands in India include Dettol, Tata Indicom, Infosys, Taj Hotels & Resorts, Wipro, Microsoft, Reva, Maruti, Colgate and Lifebuoy. "With product and emotional differentiation fast becoming parity, the green agenda in branding could give a brand a forward-looking image," said BBH India managing partner Partha Sinha. He said that with consumers becoming more environment conscious, marketers looking for a deeper engagement to attract and retain them might find traction with green branding and advertising.

The preference for green products is noticeable even in big-ticket, aspirational products like cars. While one-third of potential buyers would opt for a green car than a dream car in India, one in seven prefer a dream car to be a green car. The figures are almost at par with those of other Bric countries, according to market research firm Synovate's Dream vs Green Cars survey. Taking a cue from consumers' behaviour, it's time for the government to step in proactively, say industry leaders. "If the government comes out with a long-term policy to promote green products, it would make it easier for consumers to prefer such products," said Hero Electric CEO Naveen Munjal. That would help turn the green trickle into a tide.

Do you think Green Brands need such attention like the Copenhagen summit to grow?