Starting a new brand is an exciting journey filled with opportunities to make an impact. However, as consumers increasingly demand ethical and environmentally friendly practices, sustainability is no longer an optional feature — it’s a necessity. The latest insights into sourcing and sustainability trends offer valuable lessons for new founders looking to build brands that stand out for all the right reasons. Here, we break down the current landscape and provide actionable guidance to help you integrate sustainability into your brand’s DNA.
The Current Sourcing Landscape
Global Sourcing is the Norm
A significant 74% of UK retailers source internationally, with popular regions including China (49%), the UK (42%), and India (37%). Even small businesses embrace international sourcing, though they tend to stay closer to home due to resource constraints.
Key Takeaway for Founders: When choosing where to source, consider your brand’s values, logistical needs, and capacity. While international sourcing offers cost advantages and product diversity, balancing this with ethical and sustainable considerations is crucial.
Smaller Businesses Are Closer to Consumers
Smaller businesses often feel greater pressure to adopt sustainable practices due to their proximity to customers who value transparency and eco-friendliness.
Key Takeaway for Founders: Leverage your small business’s agility to adopt sustainable sourcing. This will resonate with modern consumers who actively support ethical brands.
Challenges in Sustainability
Fragmented Sustainability Approaches
Only 31% of businesses have dedicated sustainability departments. Many smaller brands manage sustainability as part of other roles, leading to inconsistent strategies.
Key Takeaway for Founders: Make sustainability a cornerstone of your brand. Even if resources are limited, appointing a sustainability champion or embedding sustainability into your brand’s core operations can yield long-term benefits.
Cost and Risk Barriers
Sustainable sourcing can be more expensive, and businesses often cite cost and logistical risks as barriers. Smaller brands, in particular, struggle with the financial burden of sustainable practices.
Key Takeaway for Founders: Start small but think big. Focus on affordable, sustainable alternatives for your products and gradually expand as your business grows. Communicating these efforts transparently to your audience can help build trust and loyalty.
Limited Consumer Pressure
Surprisingly, over 50% of smaller businesses reported a lack of consumer pressure as a reason for slow sustainability progress. However, there is a growing demand for sustainable practices in niche markets.
Key Takeaway for Founders: Educate your audience on the value of sustainability. Creating content around your eco-friendly efforts can generate awareness and build a loyal customer base.
Opportunities for Improvement
Collaboration is Key
The retail industry’s individualistic approach to sustainability is slowing progress. Collaboration across sectors can accelerate change, reduce costs, and scale sustainable practices.
Key Takeaway for Founders: Seek partnerships with other businesses, industry groups, or suppliers committed to sustainability. By pooling resources, you can overcome challenges that might be insurmountable alone.
Transparency Builds Trust
Increasing consumer demand for transparent supply chains has made it vital for brands to track and share their sourcing practices. Visibility not only enhances credibility but also helps combat greenwashing claims.
Key Takeaway for Founders: Invest in tools and technology that provide visibility into your supply chain. Transparency should be a core part of your brand’s story, as it strengthens your ethical positioning.
Adopt a Blended Sourcing Model
Combining near and far sourcing can balance cost-efficiency, sustainability, and agility. This approach also allows brands to respond quickly to changing consumer trends and supply chain disruptions.
Key Takeaway for Founders: Explore a mix of local and global sourcing options. Local sourcing can reduce carbon footprints and improve lead times, while international sourcing can provide scalability.
Supporting Sustainability Efforts
Call for Legislative and Financial Support
Retailers have voiced the need for clearer sustainability regulations and financial incentives to adopt eco-friendly practices. Complex or vague regulations often discourage action.
Key Takeaway for Founders: Stay informed about government initiatives and industry standards that support sustainable practices. Seek grants, subsidies, or partnerships that can offset initial investments in sustainability.
Leverage Technology for Sustainability
Technology can simplify supply chain management, reduce costs, and ensure compliance with sustainability standards. Advanced tracking systems, for example, can help verify the origins of materials and ensure ethical sourcing.
Key Takeaway for Founders: Invest in digital tools that align with your sustainability goals. From inventory tracking to carbon footprint analysis, technology can be a game-changer for sustainable brand building.
Moving Forward
Building a sustainable brand is not without its challenges, but the rewards far outweigh the initial hurdles. Modern consumers value authenticity, transparency, and purpose in the brands they support. By integrating sustainability into your sourcing and operations, you not only contribute to a better future but also position your brand as a leader in a competitive market.
Action Plan for New Founders:
Research and Plan: Start by understanding your industry’s sustainability challenges and opportunities. Identify suppliers and practices that align with your values.
Embed Sustainability in Your Brand: Make sustainability a core part of your mission. Communicate this commitment clearly to your audience.
Collaborate and Innovate: Partner with like-minded businesses and adopt innovative solutions to overcome sustainability barriers.
Stay Transparent: Use storytelling to highlight your efforts and progress. Consumers appreciate honesty and are more forgiving of incremental progress when brands are transparent.
Leverage Technology: Invest in tools that enhance your ability to track, manage, and improve your sustainability efforts.
Launching a brand in today’s world comes with a unique set of responsibilities. By prioritising sustainability from the outset, you can create a brand that not only thrives economically but also contributes positively to society and the planet. If you want to learn more about Sustainability within Sourcing, check out the report put together by the brilliant minds at Source Fashion.
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