Shopping Is Increasingly About Values, Not Value: Can You Keep Up?
It's no secret that tariffs have a lot of people rethinking the way they shop. In my own backyard in Canada, my company found that nine out of 10 consumers are changing their shopping habits or plan to.
While prices are a factor, there's also something deeper here. More shoppers are realizing that where and how they spend their money matters, and they are therefore being more intentional about their purchases.
I'm not talking about simple bargain shopping or deal-hunting. What we're seeing is quite distinct: a focus on "values" more than simply "value." People across the socioeconomic spectrum have become acutely aware of the larger impact of their dollars and are making decisions accordingly.
In fact, in a recent survey of 1,000 shoppers, nearly half said that values will play a bigger role in their spending going forward. For retailers, "valuespending" poses a challenge. How do you help people shop intentionally in a way that's both meaningful for them and practical for your business?
Here's a look at what values-based commerce really is—and how retailers are putting it at the forefront.
What Is Values-Based Commerce?
Being intentional or values-oriented can mean very different things to different shoppers. As consumers buy with intention, their values span many different ideologies and ideals.
One shopper might focus on purchasing ethically, prompted by concerns about forced labor and climate change. Another might feel strongly about supporting local businesses, as we saw during the pandemic and now with the "buy local" movement. For yet another consumer, health may be the main driver for being more intentional about what they buy.
Of course, several ideals may come into play at once. For example, someone could support a local maker of organic beauty products that sources its ingredients ethically.
It's also important to remember that in response to events, consumers can shift from prioritizing one set of values to focusing on another. Take the backlash against Tesla, whose role as a champion of eco-friendly vehicles has been largely overshadowed by alarm concerning CEO Elon Musk's political activism.
While it may be easy to assume that this type of consumerism is limited to the more modern generations, it's not just Gen Z who are shifting how they shop. My company's survey found that more than 90% of all consumers now believe they are intentional with their purchases, and fully one-third are already spending in line with their values.
Certain retail sectors are at the vanguard of valuespending, in particular, beauty, fashion and food. And in many ways, small, independent retailers exemplify the movement. Because they're so close to their customers, these businesses are in a strong position to grasp and respond to people's values.
So, how can companies adapt to increasingly conscious consumers and meet them on their own terms? Is there a right way to cater to one set of values without alienating another? And how do you avoid chasing the latest trend or betraying your own brand identity?
Start With Understanding Your 'Why'
People can spot inauthenticity a mile away, and consumer trust is hard to earn and easy to lose. To win shoppers over and keep them coming back, retailers need to understand why they're embracing a specific set of values.
Ideally, it maps onto some element of your identity or mission. For example, Patagonia's core values include quality, integrity, environmentalism and justice—all of which speak to customers' ideals. Footwear brand Allbirds has made sustainability more than lip service, releasing what it claims to be the first net-zero shoe that doesn't rely on carbon offsets.
Speaking of lip service: Avoid greenwashing, which can be a deal-breaker for conscious consumers. In fact, roughly seven out of 10 people say they shun companies accused of making false statements about protecting the climate.
Lean Into What You Sell And Where You Source It From
For any retailer who's serious about valuespending, the real test is the products they sell and where they come from.
Increasingly, consumers are shunning goods whose provenance clashes with their values. A great example is the backlash against fast-fashion trends offered by retailers like Temu and Shein. Shoppers were already feeling a bit of collective guilt about fast fashion, which is linked to unethical labor practices and has a huge environmental impact. Add on tariffs, and that throwaway T-shirt or jacket starts to look much less attractive.
This is where revisiting your sourcing and supply chain comes into play. By sourcing products that align with the latest consumer values and trends, retailers can set themselves apart.
New digital tools are helping smaller players level up their sourcing. These let independent businesses choose from different suppliers as consumer demands change. Depending on what values their customers espouse, that could be a grower of organic cotton halfway across the globe or a local furniture maker.
Look At How You Market And Merchandise Your Products
The next step for retailers is to present their goods in a way that helps shoppers make intentional choices about what they buy.
Putting product information front and center matters—especially to conscious consumers, who want to know where something comes from and how it was made. New technology is making it easier for retailers to offer a holistic picture in creative ways, both online and off.
For example, Lush has made product info accessible while also cutting down on waste. Using Lush Lens in the cosmetics retailer's app, shoppers scan a packaging-free product to get its description, price and ingredients, plus a video showing how it's used. Meanwhile, new scanning tools let salespeople provide product details to shoppers by whipping out a handheld device.
As values-based commerce reshapes how people shop, retailers that get on board now can improve their odds of sticking around for the long haul. Making the shift means being intentional themselves—by asking why they're in business, being transparent with customers, and taking a hard look at what, where and how they sell. With valuespending on the rise, chances are those efforts won't go unnoticed.
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