An emerging “consciousness economy” is motivating companies to acquire purpose-driven brands, according to JLJ Marketing.
Consciousness is driving consumer purchase decisions, profit, and brand preference -- which is why the $3.4 trillion global wellness market is now three times larger than the global pharmaceutical industry, according to JLJ’s "The Rise of the Consciousness Economy.”
The “consciousness economy” consists of companies, products and services that embrace the collective awareness-driven mindset “that what’s good for the world is good for me.” It can be described as actions involving commerce that: directly or indirectly make the world better; allow one to go about their daily routine without doing harm to the world; and communicate messages in a positive manner.
This economy has come into being due to a societal sense of mistrust, unease, and lack of control that is driving people to look inward, according to the white paper. The paper asserts that during these times of social instability, consciousness has become both an economic stimulus and a catalyst for change. Companies that want to see both brand sentiment and profit thrive will take notice.
“The consciousness economy represents a rapidly growing population purposely transforming awareness into meaningful, sustainable action via purchases made, the food consumed, wellness activities pursued, and the content embraced,” said Jessica Joines, CEO, JLJ Marketing, who will present her findings during an Advertising Week panel this afternoon. “Consumers want health and happiness for themselves and good things for the world. Smart brands recognize that consciousness is now actively informing purchase decisions and will shift their strategy appropriately to win their hearts, wallet, and loyalty.”
Consumers want to put their voice into action through purchasing products that demonstrate an alignment with doing good for the world. They are rejecting fear-based messages, instead embracing and aligning with the positive, and engaging in mindfulness activities that are focused on self-improvement in both personal and professional environments, Joines says.
Companies and products that have begun to align themselves with the core principles of this new economy include pioneers like Patagonia, Wild Planet Foods, and The Honest Company as well as larger companies like Unilever.
JLJ is currently running a beta program with a number of fashion and retail brands to align their business and marketing strategies against the proprietary principles that JLJ has identified as elemental to the “consciousness economy.” Brand sentiment measures are being benchmarked to measure the success of this program in the short term, with longer term measures of profit in play.
“The recent acquisition activity around Seventh Generation and The Honest Company show that consciousness is driving up valuations and is a driving force in consumer buying decisions,” Joines says. "The market has spoken -- it's time for brands to take action."