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Grow Your Business Organically

by Renee Fellows


Renee Fellows

February 27, 2007—One of the fastest growing trends in the coming decade will be in anything declaring itself to be organic. That’s right, organic is hot. Whether it’s from the food you eat (dare I say, there may be organic Twinkies™ in our future?) to the type of t-shirt you wear, if it’s organic, it’s in demand.

According to the Organic Trade Association’s (OTA) Forecast for 2005 and Beyond, in the future the average consumer household will contain at least one, if not many, organic products on a regular basis. This includes not only food items but organic clothing, household cleaning products and even personal care items. The Organics Food Industry reports experiencing a 16% to 21% growth from 1997 to 2004 and projects an additional 10% -15% growth from 2006-2010 and another 5% to 10% increase from 2011 to 2025. That’s projected sales revenues of nearly $2 billion (and slightly under 6% of all total U.S. food sales).

Who will be purchasing organic products?

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Taught by their Generation X parents (born between 1965 and 1976), the Gen Y set (currently 12 to 30 years old) will grow into the generation that consistently seeks out organic products. Young shoppers in the next 10 to 20 years will mature into heads of household purchasing organic items for their own families. Ethnic shoppers (including Asian and Hispanic Americans) will also continue to be more likely to be organic shoppers.

Industry data shows Hispanic consumers as being significantly more interested in natural and organic food and products and they that are far more likely to shop the natural food aisles and want their stores to carry natural and organic products. Bear in mind that ethnic shoppers will also have unique needs such as bilingual packaging, graphic imagery representing their population, and even color schemes that more effectively speak to the target market.

The OTA also predicts that consumers will not go to the supermarket for weekly shopping (as it will be done via the Internet and delivered to their door), rather they will go to the store explicitly for an experience or an encounter. Trends will include seniors who will be seeking products to extend or support a healthy lifestyle, consumers interested in better ways to manage hormone shifts (as in menopause and puberty) and naturopathic ways to fight cancer. Lastly, and most importantly, consumers want products that will help them be beautiful both inside and out.

How can you take your business organic?

Do your homework. Join Organic Trade Associations and industry groups to learn more about the process and what qualifies as organic. Industry sponsored events such as the All Things Organic™ Conference and Trade Show and even the Wear Organic! Fashion Show provides opportunities to check the latest trends and issues inside the field. After you’ve researched the industry, brainstorm ways that your business can take shift a current product or service and turn it organic.

Make every opportunity to speak with industry leaders and more importantly, the growers and farmers. They are on the front line of innovative research and development and can act as sherpas on the pathway of understanding how to develop an organic future for your business.

What’s hot?

On the horizon are edible packaging items such as Stonyfield Farm’s future yogurt pops with edible sticks made from crushed sesame seeds and even a wrapper manufactured from flavored whey left over from organic cheese manufacturing. Remember that no matter what your product or service, it won’t be hot just because it’s organic.

To effectively sell a product or service, it must always answer the basic tenets of marketing: it must be exciting, hip and answer a need in the consumer’s mind. So don’t launch a product just for the sake of being organic but rather create a product in which you truly believe and that fills a niche in the marketplace.

Be Empowe(RED)

Rocker and philanthropist Bono of the Irish band U2 has made ending world poverty and AIDS his personal mission and has gathered some of the world’s largest manufacturers and brands along with him. When a consumer buys a Product (RED) item from GAP, Motorola, Armani, Converse or Apple, the sponsoring company will give up to 50% of their profit to buy AIDS drugs for mothers and children in Africa.

Boasting nearly 2.3 million online members of ONE, Bono’s Internet portal for activism and info rmation the organization has gone global with its public relations and marketing efforts to make a difference in the world. “ONE uses the power of your voice to create a more just world where people can earn their own way out of poverty,” says Bono in his ONE blog.

The ultimate message is consumers want to feel good about the products they choose. They believe by supporting companies using environmentally sound business practices and purchasing a product that returns its profits to those in need or by creating a sustainable economy for a third world population that they can redirect their purse and make a positive change in the world.

What are you wearing?

Organic textiles sales are proving to be another growth industry. With sales reportedly increasing 22.7% in 2003 over the previous year and expected to reach $85 million according to the OTA’s 2004 Manufacturer Survey, fashion, as usual, will be leading the charge in setting new trends. Apparel companies are developing special programs that use 100% organically grown cotton or a blend of organic cotton with conventional cotton in their product lines.

Organic cotton is grown using methods and materials that have a low impact on the environment. Using reduced toxicity in pesticides and fertilizers and practicing farming in a biologically diverse manner, industry leaders are changing the way cotton is produced and used throughout the world all the while providing new life to otherwise shattered third world economies. Partner 100% African-grown organic cotton with Bono’s Product (RED) and you’ve got a powerful motivator for economic and social change that’s also a hot fashion trend.

What does this mean to the consumer?

In the end, the buyer looks to organic as a way to answer the looming questions of how to better protect the environment, reduce greenhouse gas emissions, and provide improved ways to live a cleaner, healthier life. Members of Gen X are increasingly interested in what their families are wearing and consuming and how their dollars can be spent more shrewdly on products that make a difference either via cause-related marketing or through product manufacturing to ensure environmental sustainability.

When considering the addition of an organic product or service (such as organic home cleaning services) to your current offering, be sure to fully investigate your materials and understand the industry’s requirements for calling a product or service organic. These are exciting times and socially conscious products and services can become a prominent differentiator for your business if you do your homework and fully understand your target audience’s needs and desires.

To learn more about how socially conscious marketing can enhance your business’ brand, contact Renee Fellows at ClearPoint Marketing Communications at (603) 434-9433 or visit the web at www.oneclearpoint.com.

 

Whatever your small business needs, your Fiducial tax and financial professional can analyze your situation and recommend an appropriate action plan. To locate a Fiducial office nearest you on fiducial.com, see the Zip Code Locator located in the upper right hand corner of the page. Do you have a particular topic that we should be writing about that can help your business? Please send your suggestions to: stephen.parezo@fiducial.com.

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