The Times, Feb 2009
When times are tough it makes sense to make the most of what you’ve already got. It’s common sense. It’s the time for companies to extract every iota of value from existing assets, rather than investing in the acquisition or creation of new ones. It’s the corporate equivalent of the individual rooting through the forgotten goodies in the attic - particularly pertinent to many of the homes and gardens companies that are our focus in this month’s survey.
B&Q is a case in point. It has a significant asset which is currently untapped. Here’s a company which has been investing in its social and environmental performance in a serious and sustained way over a number of years. It spearheaded the move towards sustainable timber use which has now become widespread. There’s a great story in there and initiatives like B&Q’s One Planet Home moves it closer to the attic door, but for many it’s still in the attic.
It’s about time stories such as these got the light of day. Of course consumers’ primary focus when times are tough is on value. But this certainly doesn’t mean that they immediately cease to care about anything else. As they consider each purchase decision more carefully, thinking the choice through rather acting on impulse, it becomes ever more important for the retailer to remove any factors which could tip the balance into a decision not to buy. And this certainly includes ethical qualms and doubts (in this month’s survey 80% of consumers said they were concerned about the use of child labour in the production of home and garden products).
It wouldn’t take much. These times don’t lend themselves to the loudspeaker approach, even if the marketing budgets were there to fund it. Much more appropriate, and eminently cost-effective, would be for companies that have values to start making them evident to consumers at the time and place of the purchase decision. This means making the most of in-store space and existing brochures and mailouts. Thus providing added reassurance to the consumer that not only are they getting value, they are also getting values.
In these frugal times, every asset should be made to count.
