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Time of India
6 days ago
- Business
- Time of India
CMOs and the sustainability matrix
HighlightsIn the contemporary business landscape, the Chief Marketing Officer's role is evolving to prioritize sustainability, transforming from a brand storyteller to an architect of a sustainable future. A recent GfK survey indicates that more than half of Indian Chief Marketing Officers view sustainability as central to their brand, with 34% actively operationalizing sustainable practices. Authenticity has become the new currency of brand trust, as consumers demand genuine commitment to sustainability, urging Chief Marketing Officers to ensure that their brand's sustainability claims are supported by tangible efforts and measurable results. In an era governed by climate crises and conscious consumerism , sustainability is no longer a peripheral concern but a core business imperative. Leading this critical shift is the Chief Marketing Officer, whose role is rapidly evolving from a brand storyteller to an architect of the sustainable future. The role of the Chief Marketing Officer has always been shaped by change. From brand storytelling to data-driven decision-making, CMOs have continually adapted. But in today's hyper-paced business environment, purpose is emerging as the defining priority. Growth alone is no longer the end goal. In this new era, profitability must coexist with responsibility. CMOs are uniquely positioned at this intersection—where marketing meets mission, and the brand's voice becomes a reflection of its values. The future requires a new type of CMO, one who is capable of donning multiple suits of a strategist, ethicist, and a change agent. This transition is already happening. A recent GfK survey of more than 50 Indian CMOs and marketing chiefs indicates a significant mind-set shift. More than half view sustainability as central to their brand, and 34% have operationalised it. This transition ratifies a hard reality: sustainability is no longer a nicety— but a business necessity. And for CMOs, it's a strategic play to bring business goals and meaningful impact together. The solution is in walking the talk. CMOs can drive the change internally—through initiatives like energy efficiency that deliver quick value while building enduring credibility. These aren't just cost-cutting initiatives—they're trust-building actions that speak of character. Consumers today are vocal, aware, and aligned with causes. They want their values to resonate through the brands they support. Consumers are increasingly discerning, demanding transparency and genuine commitment behind sustainability claims. The CMO is uniquely positioned to orchestrate authenticity, strategic communication, budgetary allocation, and alignment with overarching organizational goals, thereby building profound trust with increasingly discerning consumers. In today's landscape, brands that fail to meet the genuine sustainability standards face the tangible threat of diminished brand affinity. But trust is not built on execution alone. Today's consumer can recognize greenwashing at a mile's distance. That's why authenticity is the new brand trust currency. Before creating messages, CMOs need to ask: what are we doing today that makes a difference? Internal alignment must come before external communication. Genuine credibility comes when transformation is supported by investment, dedication, and openness—not just messaging. Driving meaningful sustainable impact hinges on the inseparable principles of responsibility and authenticity. Brands must not only communicate their sustainability goals but also demonstrate genuine accountability. This requires the CMO to champion practices across the value chain, ensuring that sustainability claims are backed by tangible efforts and measurable results apart from aligning brand messaging with concrete actions. The responsibility allows the CMO to move beyond greenwashing and cultivate a truly credible and impactful sustainability narrative across products, customer engagement, brand guidelines and communication. The CMO, thus, becomes the crucial link in ensuring that the brand's pursuit of sustainability is both responsible and undeniably authentic, fostering a relationship of trust with consumers. This is where social media is invaluable. The rise of new-age media platforms has revolutionized how brands communicate and engage with their audiences on sustainability. New-age media platforms, encompassing social channels, interactive content, and direct-to-consumer avenues, offer CMOs unprecedented opportunities to cultivate radical transparency and forge stronger bonds of trust with their audiences. It empowers CMOs to create in-the-moment conversation and put a human touch on the journey. Sharing behind-the-scenes work, progress reports, and open struggles helps build trust. Stories of sustainability need to be told with clarity and vulnerability—not just celebration. We are seeing the rise of a new type of customer—one who evaluates brands by their social and environmental footprint. This consumer is values-driven and purpose-focused. Platforms like LinkedIn and Instagram let CMOs highlight innovation, feature people behind the change, and connect directly with communities and conscious consumers. They reward authenticity and transparency, not perfection. That presents a challenge: sustainability must be deeply embedded, not skin-deep. For the CMO, this is the moment to lean in. Incremental change is no longer enough. Leadership now requires bold commitments, even at the cost of uncertain ROI. This isn't about optics—it's about real outcomes. When it comes to building a sustainability narrative, the early adopters are ruling the space. Because today, sustainability and marketing are inextricably linked. The CMO must ensure that connection is authentic, consistent, and powerful. By driving systemic change internally and communicating externally, CMOs can create brands that stand for something bigger than business—brands that inspire trust, loyalty, and long-term relevance. Therefore, the future of marketing leadership hinges on the CMO's ability to strategically own the sustainability agenda. The future of sustainability lies in the hands of those who shape perception. The CMO must now be both guardian of the brand and steward of its purpose. (The author is Head of Marketing, Strategy, Govt. Affairs & CSR - Signify, Greater India. Opinions are personal.)
Yahoo
27-05-2025
- Business
- Yahoo
German consumer confidence creeps up, but shoppers are still wary
Germany's consumer confidence rose for a third consecutive month in May, but the improvement remains moderate as lingering economic uncertainties continue to weigh on households, according to the latest GfK Consumer Climate report powered by Nuremberg Institute for Market Decisions. The forward-looking Consumer Climate index is projected to reach -19.9 in June 2025, up from a revised -20.8 in May. The indicator has now reached its highest level since November 2024, when it stood at -18.4. Nonetheless, sentiment remains deeply negative, reflecting ongoing caution among German consumers. The report shows that rising income and economic expectations are not yet translating into stronger household spending. A modest increase in the willingness to save and a dip in purchase readiness are keeping the overall recovery fragile. 'The level of consumer sentiment remains extremely low, and consumer uncertainty remains high,' said Rolf Bürkl, consumer expert at the NIM. 'The unpredictable customs and trade policy of the US government, turbulence on the stock markets and fears of a third consecutive year of stagnation are reasons why the consumer climate remains weak. In view of the general economic situation, people seem to think it advisable to save.' Indeed, the savings indicator rose by 1.6 points in May to 10.0, reversing part of April's sharp decline. The renewed caution is dampening the positive effect of rising income expectations and economic optimism. Consumers' income expectations rose for the third month running, climbing 6.1 points to 10.4 — the highest level since October 2024. Though slightly below the May 2024 reading, the latest figure underscores increasing optimism about household finances. The improved sentiment is underpinned by robust wage settlements and a mild easing in inflation. The recent pay deal in the public sector, which includes a 3% increase this year and an additional 2.8% in 2026, is helping to support purchasing power. According to the Federal Statistical Office, inflation slowed to 2.1% in April, down from 2.2% in the two previous months. Related Merz's stumble jeopardises hopes of rebooting sluggish German economy German stocks drop as Merz stumbles in historic Bundestag defeat Despite stronger income prospects, German households appear reluctant to increase spending. The willingness to buy index fell by 1.5 points in May to -6.4, reversing part of the gains seen earlier this year. Compared to May 2024, however, the indicator is still up by nearly 6 points. According to the survey, concerns over job security and geopolitical instability continue to cloud consumer sentiment. Rising unemployment and fears of job losses are holding back discretionary purchases, even as real incomes improve. Economic expectations rose for the fourth consecutive month, with the index climbing 5.9 points to 13.1 — its highest level since April 2023. The sustained rise suggests that consumers are cautiously hopeful about a broader economic recovery, despite the backdrop of stagnation. The German Council of Economic Experts, in its latest spring report, forecast no GDP growth for 2025 but expects the economy to expand by 1% in 2026, assuming stabilisation in domestic and global conditions. Futures on the DAX indicate the German stock market is set to open flat on Tuesday, after gaining 1.7% on Monday. The bounce was fuelled by Donald Trump's decision to delay steep tariffs on EU goods, easing trade tensions. The US president postponed a planned 50% tariff hike, initially expected to take effect on 1 June, pushing the deadline to 9 July, following a phone call on Sunday with European Commission President Ursula von der Leyen. The reprieve is especially significant for Germany, whose export-driven economy depends heavily on the US market for key sectors like pharmaceuticals, industrial machinery, and automotive components. The euro traded at $1.1385, also unchanged for the day. On Monday, the single currency hit $1.1418, the highest level in a month. Sign in to access your portfolio
Euronews
27-05-2025
- Business
- Euronews
German consumer confidence rises despite uncertainty
Germany's consumer confidence rose for a third consecutive month in May, but the improvement remains moderate as lingering economic uncertainties continue to weigh on households, according to the latest GfK Consumer Climate report powered by Nuremberg Institute for Market Decisions. The forward-looking Consumer Climate index is projected to reach -19.9 in June 2025, up from a revised -20.8 in May. The indicator has now reached its highest level since November 2024, when it stood at -18.4. Nonetheless, sentiment remains deeply negative, reflecting ongoing caution among German consumers. The report shows that rising income and economic expectations are not yet translating into stronger household spending. A modest increase in the willingness to save and a dip in purchase readiness are keeping the overall recovery fragile. 'The level of consumer sentiment remains extremely low, and consumer uncertainty remains high,' said Rolf Bürkl, consumer expert at the NIM. 'The unpredictable customs and trade policy of the US government, turbulence on the stock markets and fears of a third consecutive year of stagnation are reasons why the consumer climate remains weak. In view of the general economic situation, people seem to think it advisable to save.' Indeed, the savings indicator rose by 1.6 points in May to 10.0, reversing part of April's sharp decline. The renewed caution is dampening the positive effect of rising income expectations and economic optimism. Consumers' income expectations rose for the third month running, climbing 6.1 points to 10.4 — the highest level since October 2024. Though slightly below the May 2024 reading, the latest figure underscores increasing optimism about household finances. The improved sentiment is underpinned by robust wage settlements and a mild easing in inflation. The recent pay deal in the public sector, which includes a 3% increase this year and an additional 2.8% in 2026, is helping to support purchasing power. According to the Federal Statistical Office, inflation slowed to 2.1% in April, down from 2.2% in the two previous months. Despite stronger income prospects, German households appear reluctant to increase spending. The willingness to buy index fell by 1.5 points in May to -6.4, reversing part of the gains seen earlier this year. Compared to May 2024, however, the indicator is still up by nearly 6 points. According to the survey, concerns over job security and geopolitical instability continue to cloud consumer sentiment. Rising unemployment and fears of job losses are holding back discretionary purchases, even as real incomes improve. Economic expectations rose for the fourth consecutive month, with the index climbing 5.9 points to 13.1 — its highest level since April 2023. The sustained rise suggests that consumers are cautiously hopeful about a broader economic recovery, despite the backdrop of stagnation. The German Council of Economic Experts, in its latest spring report, forecast no GDP growth for 2025 but expects the economy to expand by 1% in 2026, assuming stabilisation in domestic and global conditions. Futures on the DAX indicate the German stock market is set to open flat on Tuesday, after gaining 1.7% on Monday. The bounce was fuelled by Donald Trump's decision to delay steep tariffs on EU goods, easing trade tensions. The US president postponed a planned 50% tariff hike, initially expected to take effect on 1 June, pushing the deadline to 9 July, following a phone call on Sunday with European Commission President Ursula von der Leyen. The reprieve is especially significant for Germany, whose export-driven economy depends heavily on the US market for key sectors like pharmaceuticals, industrial machinery, and automotive components. The euro traded at $1.1385, also unchanged for the day. On Monday, the single currency hit $1.1418, the highest level in a month. Shares of BYD, the largest Chinese electric vehicle brand, tumbled 8.6% on Monday following news that the company offered steep discounts in some models, sparking concerns about a fresh price war in China's EV markets. The decline continued in Tuesday's Asian session, with BYD shares falling a further 4% in Hong Kong as of 5am CEST. Despite the drop, the stock remains up more than 50% year-to-date on the Hong Kong Stock Exchange. In contrast, global competitor Tesla saw little change in its share price on Monday, but remains down 13% year-to-date in 2025. The aggressive pricing strategy has raised concerns over slowing EV demand amid persistent weakness in the Chinese economy and heightened US-China trade tensions. Other major Chinese EV makers also saw declines on Monday, with shares of Geely, Great Wall Motor, and Xpeng falling between 4% and 9% due to fears that deeper discounts could squeeze sector profit margins. BYD announced broad price reductions across 22 electric and plug-in hybrid models, effective until 30 June, according to a post on the company's official Weibo account. The discounts, which range from 10% to 30%, apply to vehicles from its Ocean and Dynasty series. The most significant cut was for the Seal 07 DM-i model, with a discount of 53,000 yuan (€6,460), or 34%. Analysts expect rival Chinese carmakers to follow BYD's lead as domestic competition intensifies. The pricing strategy also appears aimed at reducing the excess inventory of older models. In the first four months of 2025, BYD's dealer inventory rose by approximately 150,000 units, equal to around half a month's worth of retail sales, according to CnEVPost. Citi analysts estimate that the price reductions could drive a 30% to 40% weekly surge in sales. This may potentially offset margin pressure. Despite investor concerns, BYD remains on a strong growth trajectory and continues to challenge Tesla in global markets. In April, BYD reported 380,089 sales of new energy vehicles (NEVs), a 21% year-on-year increase. Overseas sales also set a new record for the fifth consecutive month. In a key milestone, BYD outsold Tesla in Europe for the first time last month, with 7,231 new battery-electric vehicles registered, a 169% year-on-year jump. By comparison, Tesla's sales have fallen across Europe in 2025, a trend attributed in part to growing anti-Tesla sentiment linked to CEO Elon Musk's political involvement. During the first quarter, BYD sold nearly 1 million vehicles, placing it firmly on track to achieve its 2025 target of 5.5 million annual vehicle sales. The company reported a net income of 9.15 billion yuan (€1.11 billion), with a gross profit margin of 20%. This compares with Tesla's $409 million (€359 million) and a 16% margin over the same period. BYD is also investing in advanced driver-assistance systems. The company's adoption of DeepSeek's R1 AI model is expected to rival Tesla's Full Self-Driving (FSD) technology, potentially at a significantly lower cost. In addition, BYD is China's second-largest battery manufacturer after CATL, giving it a competitive edge in cost control and vertical integration. BYD is likely to remain less impacted by US tariffs as it does not sell passenger vehicles to the US. Instead, it is focusing on Southeast Asia and South America for international growth. The company is also establishing a manufacturing plant in Hungary, which is expected to boost European sales.
Wall Street Journal
27-05-2025
- Business
- Wall Street Journal
German Consumer Confidence Edges Higher Despite Tariff Uncertainty
Consumer sentiment in Germany improved a little as wage expectations grew and views of the economic outlook calmed, despite the uncertainty provoked by President Trump's tariff policies, a monthly survey said Tuesday. The consumer-climate index published by research groups GfK and the Nuremberg Institute for Market Decisions ticked up for a third straight month to minus 19.9 in June's forecast, 0.9 points higher than in May. Economists polled by The Wall Street Journal expected the measure a little stronger, at minus 19.6.
Reuters
27-05-2025
- Business
- Reuters
German consumer sentiment gets boost for June but households still thrifty, GfK finds
BERLIN, May 27 (Reuters) - German consumer sentiment is set to improve again slightly heading into June but households' hesitancy to spend remains an obstacle to any stronger recovery in Europe's biggest economy, a survey indicated on Tuesday. The consumer sentiment index, published by GfK market research institute and the Nuremberg Institute for Market Decisions (NIM), rose by 0.9 points month on month to -19.9 points, just below an average forecast of -19.8 from analysts polled by Reuters. The rise was driven by improved income prospects in May, which factors into the survey's assessment of consumer climate for the coming month. However, a declining willingness to buy and an increased willingness to save had a dampening effect. It was the overall indicator's third monthly increase, but the rate of recovery slowed heading into June. "The level of consumer sentiment remains extremely low, and consumer uncertainty remains high," said Rolf Buerkl, NIM's head of consumer climate, pointing to tariff and stock market turbulence and the prospect of a historic third year without growth in Germany. "In view of the general economic situation, people seem to think it advisable to save," Buerkl added. Germany's new government has promised to drastically ramp up investment and stimulate the economy after two years of contraction. But an unpredictable tariff row with the United States threatens Germany's export-driven economy and prompted the government to scrap its growth forecast for 2026. NOTE - The survey period was from May 1-12, 2025. An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop compared with the same period a year earlier. According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1% in private consumption. The "willingness to buy" indicator represents the balance between positive and negative responses to the question: "Do you think now is a good time to buy major items?" The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months. The additional business cycle expectations index reflects respondents' assessment of the general economic situation over the next 12 months.
