Why ethical fashion is made for referral marketing

The days when consumers would support brands without knowing anything about them are over. The internet has made it easier than ever to learn about the ethics and practices of companies which consumers support. Companies with track records of ethical missteps or questionable policies can’t hide those blunders anymore. Instead, they bear the brunt of bad social media buzz, which can have a very real impact on their stock prices and overall reputations.In 2014, American Apparel founder and CEO, Dov Charney, was ousted over a series of misconduct allegations. Charney has been sued by multiple former employees for sexual harassment and other forms of misconduct. His behavior—and his ongoing legal battle with American Apparel—has been blamed for tarnishing the company’s legacy as a fashion business that emphasized a “Made in the USA” mission. Charney’s oust caused a rapid drop in American Apparel’s stock prices. While American Apparel’s woes have largely been linked to these issues of misconduct, there is another major area in which consumers’ brand expectations are growing: sustainability.Data shows that modern consumers want to support sustainable companies. According to an international Unilever survey, one third of all consumers prefer sustainable brands. A 2015 Nielson survey saw 66 percent of consumers stating that they were “willing to spend more” on a product if the brand behind it was sustainable. And, in the case of millennials – the most attractive demographic to most fashion brands – the Nielson report found that 73 percent of millennial respondents don’t simply seek out sustainable products, but will pay more to support these brands. Simply put, sustainable or ethical brands are all the rage with consumers.This preference has led to the rise of many green-conscious businesses, including a growing segment of ethical fashion brands.

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Buyapowa masterclass: why no brand is too big for referral

Too big for referral

The popular belief is that referral marketing is a sledgehammer, something you deploy to get masses of new customer acquistions in one big slam. But, here at Buyapowa, we know it can be much more surgical than that – less a sledgehammer and more of a scalpel; something you can deploy in very specific ways to achieve very specific goals.

In this article, we’ll take you through two use cases where referral can be extremely surgical. And, to illustrate the point, we’ll use one example brand, Boots: the kind of brand that might think it’s too big for referral but, once it understands that referral needn’t be a blunt tool, quickly sees the value.

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Golden global: L’Occitane’s referral programme rolls out internationally

L'Occitane's referral programme

Hot on the heels of their recent UK launch, L’Occitane are taking their refer-a-friend programme into five more countries across four continents. As the programme rolls out over the coming weeks, customers in France, Germany, the United States, Brazil and Japan will be equipped and incentivised to introduce their friends to the world-famous luxury beauty brand, earning rewards every time one of them shops.

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