Introduction
In today’s world, many companies are involved in activities aimed at addressing relevant environmental issues as part of their corporate social responsibility initiatives. However, some ventures conduct their businesses while using solely green marketing as a mechanism to operate by reducing numerous negative impacts on the environment. One of such companies is Ecoalf, a Spanish fashion brand that has grown significantly in recent years. The company’s green marketing helps it realize its business objectives and draw public attention to the existing environmental issues.
Theoretical Background
One of the factors affecting the sustainability of fashion brands negatively is competition. According to Thomas (2019), some businesses in this sector use radically distinctive development models, which allows them to keep the intermittent interest of the target market. However, without having a reputable history, this is difficult for companies to overcome the competitive barrier. As a result, high competition in such an environment affects the sustainability of brands and can often be an obstacle. The inability to withstand pressure from rivals, in turn, is directly associated with falling profits and, consequently, financial challenges.
Maintaining sustainability in the fashion industry is largely based on creating sustainable demand, and if companies fail to provide this condition, they face serious challenges. Thomas (2019) draws attention to the importance of a mandatory reorganization in the case of failure of fashion brands to sell goods in the required volume. In this case, in addition to operational risks, organizational sustainability is under threat. This sustainability parameter is directly related to employees’ welfare and, consequently, productivity. Thus, those fashion companies that fail to maintain organizational sustainability are at risk of low revenues.
One of the trends in the fashion industry is the focus on environmental sustainability. Nonetheless, as Todeschini et al. (2020) state, a number of constraints can negatively affect the success of such a development model, for instance, the lack of opportunities for innovation or optimization of supply chain structures. Moreover, environmental sustainability is directly related to the public interest, and in the case of weak support, success is hardly guaranteed. Therefore, appropriate barriers should be taken into account when aiming for this form of sustainability for the fashion sector.
Fashion businesses may face sustainability challenges if they follow environmental courses. Ignoring official regulations in this field is fraught with real sanctions because the implementation of such sustainability programs is always a collaborative practice, and different stakeholders are involved (Todeschini et al., 2020). In addition, declining demand is another potential barrier since if a company fails to stay on track with ecosystems, this may cause significant dissatisfaction among target buyers. Allocating funds for environmental projects can also be problematic for new businesses that need the constant accumulation of capital but not costs.
Another area of the fashion industry that businesses are often associated with is social sustainability. According to Kong et al. (2020), customers tend to perceive companies’ attempts to address the needs of various vulnerable communities as a significant factor that increases brand trust. The lack of work in this direction, in turn, is fraught with a loss of interest in the target market. While fashion businesses may not have extra funds to commit to corporate social responsibility, customers may complain about the lack of initiative from business owners. In addition, ignoring such in-demand activities entails strict tax regulations. Finally, businesses need to forge extensive communication networks to combine efforts to strengthen social responsibility, and this can also be problematic.
Maintaining social sustainability can be fraught with difficulties related to the distinctive views of clients on the aspects of development. In other words, for someone, one line of work may seem more significant than another, and these contradictions can affect demand. Fashion businesses need to contribute to the development of national economies to justify social responsibility objectives. From a brand value perspective, sustainability is directly correlated with the transparency of efforts, and this is crucial for companies to ensure open work in this direction (Kong et al., 2020). Otherwise, the risks of client distrust and even boycotts arise.
Case Study
Ecoalf is a world-famous fashion company based in Spain, which makes clothes from recycled materials. The business positions itself as fully sustainable, and working to help the environment, particularly by reducing pollution, is one of the key priorities the business owners set. Ecoalf has received numerous honorary awards, and in Europe, this brand is one of the few that is recognized as a global company of this profile.
To assess how successfully the company implements the principles of sustainable marketing, one can consider a special framework that includes the necessary components for this activity. Four factors are the most important: convenience, customer solutions, costs, and communications (“What is sustainability marketing?,” n.d.). In addition, appropriate marketing approaches should be followed, such as ethical, ecological, and economically successful practices. Analyzing goods, production features, the pricing policy, communications, and other aspects of Ecoalf’s operations can help evaluate the company’s marketing sustainability to the fullest.
Ecoalf focuses on recycled products as raw materials for fashion production. Today, this trend is gaining popularity, and the company is making progress by creating goods that are not inferior to other brands in either quality or style. Ecoalf’s products are the hallmark of the brand, and the challenge that the management sets for itself is to constantly expand the production potential. Despite the growing trend of recycling in the fashion industry, the company remains one of the flagships, largely due to the attention to customer interests, which is an indicator of effective green marketing.
From a sustainable marketing perspective, Ecoalf has already achieved significant success, as evidenced by numerous awards and worldwide recognition. The principle of collecting materials for recycling makes it possible to strengthen interaction with the target audience. Customers themselves leave unnecessary goods in specially designated places, thereby being an important link in the production chain. This principle of involvement allows the brand to rely on the trust of the target market and attract new partners who can optimize the mechanism of collecting and sorting raw materials.
One of the strengths of Ecoalf’s work in the context of sustainable marketing is the focus on different sources of increasing the resource base, including both industrial and household wastes. This, in turn, helps the company reduce the utilization of natural resources and energy in the manufacturing process, thereby confirming the status of a green business. Ecoalf’s activities resonate with international agencies and government boards, which allows for more opportunities to attract sponsorship and pay more attention to the existing environmental issues.
Unlike many other global brands, Ecoalf does not aim to sell the clothing it produces only in the luxury category. On the contrary, while studying the pricing policy of the company, one can note that the cost of most garments is affordable, which is due not only to production features but also to the course towards the promotion of recycling manufacturing. The product lines are sufficiently wide for consumers to find the items they need.
Sustainable marketing implies creating conditions to actively attract the attention of target consumers, and Ecoalf applies successful promotion practices. As one of the main strategic initiatives, eco-design for the brand’s products is applied. The company has accounts on all popular media platforms, which allows it to be in constant interaction with the public and announce news timely. In addition, to promote the idea of recycling fashion, educating the population is an essential task, and Ecoalf also realizes it through sustainable two-way communication.
The analysis of Ecoalf’s business from the perspective of sustainable marketing demonstrates a clear adherence to all relevant principles that this concept includes. The company promotes an economically sound pricing model; communication with target consumers is continuous and convenient; no ethical norms are violated but, conversely, are maintained; an environmentally-oriented type of work is the core of the business. In the context of promoting the brand through relevant media channels, Ecoalf has the potential to increase market coverage through successful marketing practices and unique offerings associated with the involvement of a wide range of stakeholders.
Strategy Evaluation
Brand value creation is one of the implications of sustainable marketing that Ecoalf promotes in the international market. By strengthening interaction with target consumers globally, the company creates new forms of work and business models for the entire fashion industry, thereby bringing innovation. As Trivedi et al. (2018) argue, optimization is inextricably linked to brand value creation. Therefore, the contribution of the company in question to the innovative development of the target market and the popularization of recycling production is essential and obvious.
While analyzing Ecoalf’s approach to brand creation, one should note the change in clients’ perceptions of green production under the influence of the company’s activity. According to the research cited by Trivedi et al. (2018), until recently, many consumers perceived goods and services from this category as unreasonably expensive and not effective compared to traditional ones. However, due to the work of Ecoalf, the idea of green production began to change for the better. Its activity in the fashion industry is an additional factor in favor of the company since the trust of customers in this area directly entails global recognition.
One of the critical aspects influencing the value of the brand in question is the management regime. With a long-term focus on promoting green production and drawing attention to this area, Ecoalf has secured the recognition of a wide range of consumers. Since the fashion industry is largely based on following trends, many stakeholders have taken up the movement associated with recycling and the production of goods from recycled materials. Today, Ecoalf can hardly be called an exclusively Spanish brand because its products are sold in numerous world regions. Therefore, the management regime based on the promotion of a long-term development strategy has proved to be effective.
The more actively a company promotes its business on social media, the more likely it is to increase brand value. Trivedi et al. (2018) emphasize the value of these sites in the context of building awareness among target consumers. Given that Ecoalf has accounts on major media platforms, this gives customers an opportunity to interact with the company’s representatives, leave feedback, and learn about all the updates in the product lines. Such perspectives, in turn, help the business expand its reach, promote relevant goods, and publicize its individual manufacturing solutions, which corresponds to the ultimate goals of sustainable marketing.
Interaction with the audience is largely carried out through visual and verbal tools, and Ecoalf is no exception. According to Kong et al. (2020), many companies use these instruments to influence buying decisions and create awareness in target markets. In the context of sustainable marketing of the business in question, Ecoalf has a recognizable slogan that is well known in the fashion industry, as well as in other areas. By putting its key principle of work into this slogan, the company influences consumer intentions effectively, thereby increasing the value of the brand.
Due to Ecoalf’s customer-centered approach, the company communicates its offers efficiently and transparently, which has a positive effect on customer loyalty. Sustainable marketing practices, in this case, play an essential role in stimulating consumer interest (Trivedi et al., 2018). Ecoalf does not need to spend much money on advertising because, through convenient communication channels, all relevant objectives and new offers are delivered timely. This, in turn, reduces the need to use multiple promotional tools and increases brand value.
One of Ecoalf’s strengths is the logistics of its business. The company has production factories directly in the places where raw materials are sourced and processed, which saves money and, at the same time, reduces the harmful impact on the environment (“ECOALF,” 2022). In addition, from a financial perspective, pursuing sustainability marketing allows the brand to count on loyalty from the tax authorities due to the green course of work. Finally, opportunities for collaboration with other large companies are also growing.
The environment in which Ecoalf operates is conducive to establishing collaborative contacts. To date, the company has already successfully organized joint projects with several brands (“ECOALF,” 2022). According to Trivedi et al. (2018), this practice has a positive effect on customer demand and allows for an increase in the value of the brand, thereby opening up new opportunities for business growth. Moreover, new customers are attracted through a collaborative approach and product diversification, which are also valuable factors in such a strategy.
Lessons Learnt
Using Ecoalf as an example, the features and approaches to managing sustainable marketing in the fashion industry are considered. This industry is highly competitive and requires managers to utilize appropriate strategic solutions to withstand the competitive barrier. The practice of green marketing should be accompanied by clear activities to preserve ecosystems and address the needs of different stakeholders. Otherwise, client distrust can negatively affect the business and cause low demand and, consequently, insufficient profit for further development.
The current trend towards green work practices, including in the fashion industry, determines the appropriate conditions for management. Firstly, this is important to take into account special production conventions to prevent condemnation from the side of control boards and society. Secondly, this is essential to address organizational aspects timely, including employees’ interests, to prevent a decrease in productivity and loss of profit. Thirdly, the degree of involvement in social responsibility directly correlates with income, which is also a significant factor to consider when building a green development strategy.
Managers should take into account the difference between sustainable marketing and traditional marketing to build business models in accordance with the characteristics of the respective environment. Ecoalf’s example shows that by promoting democratic pricing, continuous communication with the target audience, and green production, the company successfully meets the requirements of sustainable marketing. To avoid dissatisfaction with customers and their doubts about the excessive cost of products made in accordance with green principles, managers should work to strengthen the image of their businesses and refute mass misconceptions.
Collaboration in the fashion industry is a common phenomenon, and even in the case of the pursuit of green production principles, this approach can be a valuable factor in strengthening the brand in the market. Possibilities for product diversification appear, which has a positive effect on profits and the number of target consumers. Moreover, brand value creation is simplified in such an environment because companies have more opportunities to deliver relevant messages across multiple channels, thereby increasing the potential for market recognition and sustainable demand.
One of the critical factors that determine the success of not only green production but also other types of manufacturing is introducing innovation in the operating process. Ecoalf, as a sustainable company, upgrades its equipment and builds new factories regularly, which allows it to enhance production capacity and expand the range of goods. Due to the fact that green activities require compliance with restrictive measures related to minimizing negative impacts on the environment, the sustainability of production is a criterion that largely determines market success.
Following green manufacturing principles is a modern practice that different businesses can apply. Recycling can be one of the many approaches to work, but the goal is common – minimizing environmental damage. In the fashion industry, Ecoalf has demonstrated successful growth, but other businesses can also adopt relevant practices to their operations. This is important to take into account differences in control over green marketing and consider that addressing social issues is a valuable step in increasing customer loyalty and, therefore, brand creation.
Conclusion
In the modern world, green marketing is a practice that is gaining momentum. This market promotion strategy differs from the traditional one and implies addressing social, organizational, and environmental issues in the course of operational activities. Customer focus remains a valuable success factor and influences demand volumes. Using Ecoalf, a Spanish brand, green marketing is considered from the perspectives of its sustainability and related nuances that affect business dynamics. Different ways of addressing green production can be applied, and Ecoalf can be a good example for other firms not only in the fashion industry but also in other areas.
References
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