A majority of American consumers are ready to ditch brands considered as unethical and trust small names with a genuine story, based on a new trend that could help Italian niche labels grab a bigger slice of the US retail space.
According to a new research by Mintel, 56% of US consumers said they stop buying from companies believed as unethical, with over one third renouncing to a doubtful brand even if no substitute is available. The study also showed that 63% of consumers feel that ethical issues are becoming more important in a world where the reputation of brands is under intense scrutiny by social media.
Although the survey looks at US consumer sentiment overall, what people eat has always been a very important part of consumption trends and even more so for a new generation of shoppers interested in healthier, organic products.
Such appetite can be an opportunity for Italian “craft” producers with a genuine story but often too small to carve their space in the US market. Of course, they will need to innovate their packaging and better tell their traditions to compete with regional brands, as advised by the Italian Trade Agency (ITA) which organizes events in the US to educate consumers. This is also important to win over skeptics (52%) confused by the use of icons and ethical terms unheard before.
Also positive for niche brands is another trend highlighted in the report, according to which half of American consumers (49%) trust small companies to do the right thing, with only 36% saying they would trust big companies. The origin of the product (34% of respondents) is among the main factors seen in determining a company’s ethics.
By Antonella Ciancio in Washington DC