Emotional connection with shoppers has always sat at the heart of the essence of our industry, and yet there are still precious few retailers putting their money where their mouths are towards a new agenda of social wellbeing. 5 years ago FITCH identified the move towards this trend with its Generous Brands white paper, a ground breaking challenge to the retail industry to take up the mantle and to change both operations and culture from a focus solely on the bottom line to one marrying commercial realities with a responsibility towards a higher purpose. The time has come to revisit this topic as retail finds itself poised at a moment of profound change – most pointedly the approaching dominance of Gens Y and Z on the shopping landscape, collectively the largest block of consumers in history and by far the most socially conscious. Against this backdrop it is more important now than ever before for brands and retailers to align their higher purpose with their business goals. Only then will they become not only unique, but relevant and memorable to those that they seek to serve.

1. 2.0
BRANDS
GENEROUS

2. Please join the conversation
#irdc2015
#generousbrands
@FITCHdesign
@cdaviesFITCH

3. FORESIGHT#1
Generous Brands
In a world where consumers are becoming increasingly aware of
‘mean’ brands FITCH has begun researching the concept of generosity.
Generous brands are the ones who show more of a heartbeat, take the
first step and display a genuine understanding of their customer needs.
This is a long way from 2 for 1 deals and bonus points, but rather a tone of
voice and general personality and encourages consumers to warm to their offer.
TM

4. WE’VE GOT A LOT TO GET THROUGH
And it’s a heavy topic…

5. Our Agenda…
1: How do we define Generosity?
2: Why is it important?
3: What factors are shaping it today?
4: Who are the Generous Brands?
5: Where is Retail Generosity?
6: Leave, have a think, start making a difference…

6. How do we define Generosity?1

7. The habit of giving without expecting anything in return.
Farukh
GENEROSITY:

8. Offering time, assets or talents to aid someone in need.
Often equated with charity as a virtue, generosity is widely
accepted in society as a desirable trait.
Wonderlane
GENEROSITY:

9. Reconciling this generosity with the daily
demands of commerce
Jeremy Schultz
THE CHALLENGE?

10. Why is Generosity so
important today?2

11. OR, PUT ANOTHER WAY…
Why should retail care?

12. BECAUSE TODAY’S SHOPPER CARES
Generations X, Y and Z share an overwhelming belief that all of us need
to work together to change our world.

13. Nau
AND THEY ARE VOTING WITH THEIR $
Customers are forming deep and resonant emotional bonds with brands
and businesses that align with those beliefs and rewarding them with loyalty

14. WHY X,Y AND Z?
Because in less than 5 years they will essentially represent
the global audience for retailers and brands

15. LET’S START WITH GEN X
This group was not born into a climate of broad social responsibility, but
their attitudes and values were shaped by a series of world changing events
Zoriah

16. THESE WORLD EVENTS
Led to the development an emerging belief in integrity, authenticity
and action, particularly as it relates to business and government
TheGuardian

17. TRAITS THAT INFLUENCED
X-ers behaviors as parents and laid the groundwork for their
influence on the Generations to come…
Me

18. Me

19. GENERATION X TODAY
Are focusing their energies and wallets on undoing
the mistakes of the generations that came before them

20. GOOD NEWS FOR GENEROUS BRANDS
As this group are also entering the peak earnings decade of their careers
and are ready to reward companies that align with their beliefs
Volvo

21. GENERATION Y
Aren’t the kids in your store anymore, and are in fact
more likely to be shopping for their kids.

22. 47% of Millennials are parents, 49% live as a couple, 52% are homeowners
ALL GROW’D UP…
Source: Yankelovich Monitor, 2014

23. They are getting used to a lot more responsibility. And with more
responsibility comes an (even) more responsible outlook.
ONE THING IS FOR SURE

24. 78% would recommend a company seen as a good citizen, 74% would be
proud to be associated with it, 71% would be loyal to such a business
Source: MSL Future of Business Citizenship Report, 2014
SLACKTIVISTS NO MORE

25. GenZ is the most socially responsible generation in history
Glenn Brown
BUT THE BEST IS YET TO COME

26. WITH A CRAP TON OF OOMPH
“By 2020 today’s 14-19 year olds (GenZ) will be the largest group of
consumers worldwide, making up 40% of shoppers in the US,
Europe and the BRIC countries” Source: FITCH Gen Z report
LauraSmith

27. AND A CONSCIENCE TO BOOT
“Research points to the emergence of a stellar generation: educated,
industrious, collaborative and eager to build a better planet”
Source: Maclean’s: Get ready for GenZ

28. “Their role models are young, everyday characters like
The Hunger Games’ Katniss Everdeen, who face
seemingly inescapable scenarios but rise above them to
create a better society - just like Zs, who feel a
responsibility to change the status quo.”
Source: Forbes, GenZ Rebels with a Cause
“60% of Zs want jobs that have a social impact
and 26% already volunteer.”
Source: Meet GenZ: Forget everything you know about Millenials
TheRealMStyles

29. THE IMPACT OF THESE GROUPS
Will signify a profound shift in shoppers’ expectations around how businesses
need to act relative to the challenges our world is facing.

30. AND WE’VE GOT A LONG WAY TO GO
89: Percentage of individuals globally who believe business should
equally weight commercial and societal needs
29: Percentage of individuals globally who believe business is actually
doing that today
Source: 2012 Edelman Good Purpose Study

31. What factors are shaping
the new Generosity?3

32. WHAT CAN WE LEARN?
From X, Y and Z

33. 3.I JUST “GIVING” WON’T CUT IT
Almost every business gives money to charity. And while on paper that’s
great, being generous means taking this altruism and activating it.
TimGreen

34. NEXT GEN STATS ON GIVING
The new generation of shoppers has had a front row seat on the
ineffectiveness of government to tackle issues head on.
The key is using your particular SKILLS, EXPERTISE, PEOPLE
and RESOURCES to tackle problems that businesses can solve -
even when others can’t.
They now see businesses as a far more effective vehicle for change, and they
expect them to step up.

35. It’s more important for Generous Brands to focus on close-in issues,
rather than making generic and lofty goals that can never be achieved.
3.II YOU CAN’T BOIL THE OCEAN

36. NEXT GEN STATS ON OVERREACHING
We now live in a world where the problems we face are having a direct
impact on our lives everyday.
From water shortages to superstorms. From cyber crime to huge income
gaps. From immigration issues to education. From an aging population to
everyday health.
We need to stop trying to “End World (insert worthy cause)” and recognize
much needs to be done closer to all of our homes.

37. ALSO, BEING VAGUE DOESN’T WORK
Pepsi’s refresh project raised $20MM but was “canned” in less than 2 years as
no-one - most of all Pepsi’s board - could articulate what the point was

38. 3.III ACTION TRUMPS PURPOSE
For these new generations of shoppers WHAT you do is far more
important and meaningful than WHY you do it…

39. NEXT GEN STATS ON PURPOSE
While having a mission is important to corporate culture it is trumped
by action.
“We gave $150 million in donations a year but we didn’t really DO anything.
We let somebody else pick up the food and it just disappeared. We didn’t
use our skills and our people. We didn’t make a difference in ways that we
could”
Ron Shaich, Founder and Executive Chairman, Panera Bread
Good citizenship today means being a game changer.

40. PANERA CARES
Panera
A Panera where you can eat a meal for literally cents if that is all you can
afford - a brand using its people, places and products to make a difference

41. 3.IV FOCUS ON WHAT MATTERS
While purpose shouldn’t trump action, no brand will be seen as Generous
if it doesn’t address issues that are meaningful to shoppers.

42. SO, WHAT’S ON THEIR MIND?
It’s not possible to have a conversation about how business needs to
change to align with the next generation of shoppers without
discussing the environment.
The top 5 as it turns out.
When teens were recently polled globally on their top 10 concerns, 5
of them related to the environment.

43. NEXT GEN STATS ON ENVIRONMENT
It’s not enough to just take corrective action. Simply cleaning up
your past mistakes does not make you a Generous Brand.
And yet in many ways, the environment is an area where retail feels
most out of step.
Generous brands have to go further. Investing their MONEY, their
TIME, their EFFORT to changing our future, and not expecting the
customer to pick up one cent of the cost.

44. THE CONVERSATION HAS STALLED
Remember just a few years back when every conference like
this focused on sustainability, green and LEED?
Walmart

45. Q: HOW MANY SESSIONS IN 2015?
One. Across every major retail design conference in the US
and Europe.
Walmart

46. Q: REMEMBER THE SESSION NAME?
I’ll give you a clue. You’re sitting in it.
And yet it’s not like the problem went away…a quick reminder
Walmart

47. BUILDINGS (WHICH INCLUDE STORES)
Are the largest contributors of carbon emissions on planet earth
La Citta Vitta

48. AND RETAIL IS A HUGE PART OF THIS
The US has more retail sq ft per person than any nation on earth.
6 times more than the largest per person ratio in Europe
Chris Ford

49. 28,000, 42 GALLON BARRELS OF OIL
The amount we consume in the United States EVERY 2 MINUTES
heating and cooling these spaces
Chris Jordan

50. IT’S TIME FOR RETAIL TO STEP UP
But again it has to be more than just cleaning up our mess.
A true Generous Brand would go further…
Nicholas Eckhart

51. Who are the Generous Brands?4

52. Jason
MANUFACTURERS HAVE GOT THE IDEA
From large to small initiatives they are forging true emotional bonds with
the next generation of customers

53. Raising awareness and building momentum
Unilever
UNILEVER’S PROJECT SUNLIGHT

54. To a new generation of leaders
Unilever
AND GIVING A VOICE

55. UNILEVER PROJECT SUNLIGHT VIDEO
!!
!
%

56. And profound, it has already made staggering gains and Unilever now tops
every chart for sustainability and responsible business practices by a mile
Unilever
PROJECT SUNLIGHT IS VAST IN SCOPE

57. SMALL ACTIONS, BIG DIFFERENCE
“Achieving goals is not just a job for politicians and governments –
everyone needs to play their part” Paul Polman, CEO, Unilever
Unilever

58. Always

59. Cannes Lion

60. Went to a car company, not for a car, or an electric engine or a
commitment to sustainability
Volvo
2015 DESIGN GRAND PRIX

61. Volvo
BUT FOR A PAINT
Designed to save the lives of cyclists…invariably injured or
killed by cars

62. AND YET, DESPITE ALL THE EVIDENCE
…most retail is either late to the Generous party, left early, had something
better to do or is acting like it lost its invite.
Jason Hargrove

63. BUT DON’T LOSE HOPE
There are a few glimmers that retail brands that are beginning to step up

64. AND AT LEAST ONE…
Who isn’t just a glimmer, but is instead an incredibly bright spark…

65. Who is leading the way
for retail?5

66. SOME NAMES KEEP COMING UP
But is BOGO the right model for change? Is it for everyone? And
is it making a difference?
Tonya Staab

67. SO, WHO IS THE BRIGHT SPARK?
The grand old dame of British retail, Marks Spencer

68. A QUICK DISCLAIMER
I don’t work for Marks Spencer, I don’t know anyone who works there and
they are not currently a FITCH client.
Although I did buy a sweater from them a few years ago.

69. FOR THOSE THAT DON’T KNOW THEM
Founded in 1884, headquartered in London, $15 billion in annual revenues
1,100 stores across a variety of formats
Marks Spencer

70. PLAN A
In 2007 Marks Spencer launched Plan A - a 100 point, 5 year plan to
create a greener, more ethical business
Marks Spencer

71. Marks Spencer
HOW ARE THEY DOING?
By 2012, 94 of the 100 initiatives had been achieved. In 2013 added 80 new
initiatives and committed to achieving them by 2020
Marks Spencer Plan A
Marks Spencer

72. WHAT IS THEIR FOCUS?
Marks Spencer Plan A
Plan A has an incredibly broad remit but there are several key
areas where they focus their efforts.
Marks Spencer

73. PLAN A
Social Responsibility
Focus on local communities
Environmental Issues
Sustainable Business Practices
Ethical Sourcing of products
Customers’ health and wellbeing
AGAIN, IT’S NOT JUST GIVING
the MS example is something different

74. GENEROUS RETAIL
MS specifically utilizes it’s power as a retail network of employees, stores
and customers to make a difference
Marks Spencer

75. I’M GOING TO COVER 5 AREAS
Charities (McMillan, Marine Conservation Fund, Unicef)
Schwopping
Marks Start
Spark Something Good
Plan A and the environment

76. MACMILLAN CANCER SUPPORT
As headline sponsor for the World’s Biggest Coffee morning, MS donate all
proceeds from their cafes and sales of a limited edition line of homeware
Marks Spencer

77. MS Plan A Report
This annual one day event has raised over $6million dollars for
Macmillan in the past 4 years
Marks Spencer
MACMILLAN CANCER SUPPORT

78. MARINE CONSERVATION FUND
The Annual Big Beach Clean Up sees MS customers and employees
teaming up to clean over 90 beaches in the UK on a single day
hMS Plan A Report
Marks Spencer

79. MARINE CONSERVATION FUND
In 2015 they expanded the scheme to partner with the Canal and River
Trust to add clean ups at an additional 45 inland waterways
MS Plan A Report
Marks Spencer

80. UNICEF
Marks Spencer partnered with Children’s Charity Unicef to raise funds by
recycling the hangers they use in their stores
MS Plan A Report
Unicef

81. FOR EVERY BOX OF HANGERS
Customers choose to recycle at the cash register, MS donates 57p to Unicef,
which doesn’t sound a lot, until you realize what it lets Unicef provide
MS Plan A Report
Marks Spencer

82. 1 BOX OF HANGERS
Provides a child with clean drinking water for a fortnight, 3 boxes can feed a
malnourished child for a year and 25 can provide a month of school classes
MS Plan A Report
Unicef

83. IN THE FIRST YEAR OF THE PROGRAM
MS customers gave back 100 million hangers, generating over $500,000 in
funding for Unicef
Marks Spencer
MS Plan A Report

84. IN THE SECOND YEAR
Customers gave back 160 million hangers adding another $1,000,000 to
Unicef’s coffers and allowing them to restart their operation in Bangladesh
Unicef
MS Plan A Report

85. A GENEROUS RETAILER
Leveraging their people, their stores and the simple act of shopping
to help their customers make a difference in the world
Marks Spencer

86. SHWOPPING
1 billion items of clothing end up in UK landfills annually - 16 items, per
person, per year. MS believes old clothes shouldn’t be thrown out, they
should have a future
The Drum

87. A PARTNERSHIP WITH OXFAM
Clothes dropped off at MS are passed on to Oxfam where they are either
sold, redistributed to countries in need, or recycled. None end up in landfills.
Oxfam

88. AN INCREDIBLE START
in the first 2 years 7.8 million items donated, $9 million raised for Oxfam
Howard Lake
MS Plan A Report

89. AGAIN, NOT JUST A DONATION
A retail brand leveraging the power of its network of customers, employees
and stores for the greater good
Oxfam

90. MARKS START
In some ways the most profound of the Plan A initiatives
Martin Godwin

91. A WORK PLACEMENT PROGRAM
…that focuses on those who face barriers when trying to find work…single
mothers, those with disabilities or health problems and the homeless
Marks Spencer

92. MARKS START
A decade long program, offering anyone the chance to join this landmark
retailer and giving them the training and support to make it happen
Marks Spencer

93. !!
!

94. !
!$#
MARKS START VIDEO

95. THEIR MOST RECENT INITIATIVE
Launched last month in London is called Spark Something Good
Marks Spencer
MS Plan A Report

96. HOW THEY DESCRIBE IT
“We launched Spark Something Good as a way for us all - our people, our
stores and customers to get out there and make a difference…”
Marks Spencer
MS Plan A Report

97. THE PLAN
24 Cities, 24 charities per city, 24 hours of service. What can we achieve in
each city in a single, incredible day.
Marks Spencer
MS Plan A Report

98. A DAY OF ACTION
Where we don’t try and boil the ocean, we make a difference in ways that are
tangible, immediate and close to home.
Marks Spencer

99. IN TERMS OF THE ENVIRONMENT
Marks Spencer is #1 retailer in the 2015 Global Sustainability Rankings and
the #2 business of any kind (Unilever is #1)
Marks Spencer
GlobeScan/SustainAbility Survey

100. Marks Spencer
HOW DID THEY GET THERE?
By 2012 MS hadn't just reduced their carbon footprint, they became carbon
neutral. Every facility they operate is powered via sustainable energy credits.

101. Marks Spencer
5 YEARS LATER?…they remain the only major retailer in the world to achieve
carbon neutrality.
GlobeScan/SustainAbility Survey

102. MARKS SPENCER
Represents the ultimate model of a Generous Retail Brand and offers a
roadmap for the way forward

103. SO YOU MIGHT BE THINKING, GREAT!
Look at MS, what a generous industry we are…alas there is still much work
to be done…if you don’t believe me, consider the tale of Rana Plaza…

104. AND AS WE THINK ON THAT TALElet’s remind ourselves of the tenets of generosity that we began
with…and see how retail’s actions measured up
Weronika

105. The habit of giving without expecting anything in return.
Farukh
GENEROSITY:

106. Offering time, assets or talents to aid someone in need.
Remember this idea, as we remember this tale…
Wonderlane
GENEROSITY:

108. On April 23rd, 2013 at the Rana Plaza in Bangladesh, local
media sources reported that cracks had appeared in the
building’s structure

109. This was a building designed for retail and office use, but which
had been converted into a series of garment factories

110. Heavy industrial equipment had been brought into a building
never designed for the structural loads and four upper floors had
been added without a permit

111. Much of this clothing manufactured in this building was for
western fashion retail brands, 28 of them as it turns out

112. A local building inspector visited the site and ordered it evacuated.
In fact, when he saw the cracks, he literally ran from the building

113. The building’s owner declared the building safe, and the factories
ordered their garment workers back inside

114. Due to practically non-existent workers rights they complied, after
managers threatened to withhold a month’s pay from those that
would not return to work the next day

115. At 8:27 the next morning there was a power cut. The banks of
diesel powered generators on the roof kicked in causing
intense vibrations.

116. 3,122 people were in the building at this time.

117. The building collapsed. 1219 people died, most of them
almost instantaneously

118. More than 50% of the victims were women. Along with their
children who were in the “nursery” on the lower level.

119. The building’s collapse is considered the deadliest garment
factory accident in history as well as the deadliest accidental
structural failure in modern times

120. Of the 28 western fashion retailers identified as having
goods produced in this building, only 9 attended the
initial meeting to discuss compensation to the families
of the victims

121. Of those 9 companies only 4 agreed to
pay compensation

122. It took two years in the courts to finally get the
compensation paid

123. And despite the companies concerned making a collected
annual profit of over $20billion in 2014, the compensation
fund topped out at $30million.

124. Or $6,000 for each family who could prove they had a claim

125. Huffington Post
To do the right thing, to make a difference, to show the world that there
was another way. But at Rana Plaza, we failed.
RETAIL HAD A CHANCE

126. THERE WAS ONE RESPONSE…
Fashion Revolution Day, an Instagram campaign encouraging people to
wear their clothes inside out to raise awareness as to where the clothes
came from
Stellamccartney

127. Had it’s heart in the right place…but did the garment workers, making $72
a month in Bangladesh feel the effects? How about #actiontrumpspurpose?
Amylearns
#WHOMADEMYCLOTHES…

128. THERE ARE SIGNS
That retail is waking up to the challenge

129. EMPLOYEES AS VOLUNTEERS
Like Timberland’s long standing and pioneering Path of Service program
celebrating its 23rd year offering all staff up to 40 annual paid service hours
Timberland

130. A CULTURE OF CARING
80% of Timberland’s staff participate, which is a staggering number in
terms of employee volunteer programs
Timberland

131. LEADING BY EXAMPLE
The program recently celebrated its millionth hour of paid community
service across the globe, and is an inspiration for others to follow
Timberland

132. STORES AS STAGES
Brands like LUSH have long realized their stores and their employees can act
as powerful vehicles for raising awareness
Lush

133. ATTENTION GRABBING STAGES
In one of their more infamous stunts they got their entire employee base to
work naked for a day in 2007 to raise awareness on unnecessary packaging
Lush

134. AND SOMETIMES SHOCKING
Like this protest against shark fin harvesting
Lush

135. IN TERMS OF THE ENVIRONMENT
Walgreens Net Zero Energy is hard to beat. A store which makes more
energy than it consumes
Walgreens

136. IKEA
AND THE SWEDES
IKEA has always been known as a generous brand

137. IKEA
FROM COMMUNITY IMPROVEMENTS
To employee housing, from actively improving the sites they develop, to water
taxis in Brooklyn

138. JUST LAST MONTH
They announced they would be the first major retailer in the UK to adopt the
new “living wage” levels across all their stores, paving the way for greater good
IKEA

139. THEN THERE’S LUXOTTICA
Luxottica launched the Gift of Sight program 27 years ago to provide access
to vision care in underprivileged communities around the world
OneSight

140. TODAY
Luxottica selects 1,000 volunteers every year to offer their skills and expertise
at OneSight clinics across the globe,
Luxottica

141. GIFT OF SIGHT IS NOW ONESIGHT
A global, sustainable, non-profit organization that has changed the lives of
over 9MM people in 40 countries, built from the actions of one retail brand…
Luxottica

142. WATCH ALL THEIR VIDEOS
Like their amazing Gambia film on YouTube…but for today, something a
little closer to home…
OneSight

143. !!
!
ONESIGHT VIDEO OYLER SCHOOL

144. BUT PERHAPS THE BEST EXAMPLE?
CVS reported 2.4 billion dollar decision to remove tobacco products from
their shelves. A gift of generosity for generations to come.

145. Can all this generosity actually make financial sense?
Jeremy Schultz
BACK TO OUR ORIGINAL CHALLENGE

146. Despite $2.4mm going up in smoke, CVS entered the Fortune 500 Top 10 for
the first time this year. The only other traditional retailer on the list is WalMart.
YOU BETCHA…
CVS

147. And it just released record earnings for the second Quarter, thanks in part to a
5 point plan specifically designed to offset the losses from tobacco revenues
YOU BETCHA…
CVS

148. PANERA CARES
Panera
60% pay full price, 20% pay nothing, 20% pay more. Cares runs at 80% of
the performance of a regular Panera, proof that we can make this work

149. AND DESPITE A DECADE OF GRIPING
…from shareholders MS was finally able to announce this year that it saves
more money from Plan A than it spends on it.
Marks Spencer
MS Plan A Report

150. THE CASE IS CLEAR
Retail, one of the biggest industries on planet earth can make an almost
unfathomable difference to our world…if only we start acting with
generosity…

151. It’s not that we
are doing
nothing

152. It’s just that we
could be doing
so much more…

153. OURS IS ONE FANTASTIC INDUSTRY
Bringing joy to people on a daily basis. Let’s spread this joy and do the
right thing…we really don’t have any choice, to quote a hero of mine…

154. Forbes
BUCKMINSTER FULLER:
“We are not going to be able to operate this Spaceship Earth successfully,
nor for much longer, unless we see our fate as common.
It has to be everybody, or it will be nobody.”

155. THANK-YOU FOR LISTENING…

156. Please join the conversation
#irdc2015
#generousbrands
@FITCHdesign
@cdaviesFITCH