by Sagar Singhvi, founder of Singhvis
Industry by industry, consumer expectations are changing. Consumers no longer are content with brands that merely provide a great product for a reasonable price. They want to know more about how the product was produced, who produced it, and what it costs the environment and society.
For startups and small businesses, this change is a sure opportunity. Sustainability is not merely a signal of values; it’s becoming increasingly a commercial imperative that drives both loyalty and purchase. Ethical practices are now a valid differentiator that can create long-term trust and drive business growth.
What Ethical Branding Really Means
Ethical branding is more than just claims of surface-level sustainability. It is a reflection of how a company works in making things, sourcing, and long-term responsibility. True ethical brands make conscious decisions that value transparency, fairness, and respect for the environment.
This can manifest in many ways: using natural materials, using small-batch production to minimize waste, or directly working with craftspeople rather than mass producers.
Singhvis is one such example, a modern brand born out of India’s age-old block-printing tradition. The business works with artisanal communities and manufactures in small batches, marrying traditional craftsmanship with contemporary sensibilities.
The Statistics Behind Sustainable Buying
Time and again, research indicates that sustainability has transitioned from a desire to an expectation. Consumers are now no longer hearing about ethical claims as an afterthought but are actively supporting their values with their wallets.
As per PwC’s Voice of the Consumer Survey 2024, consumers are ready to pay a premium of 9.7% for sustainably produced products even during times of inflation. McKinsey and NielsenIQ’s research concluded that 72% of global consumers are ready to pay extra for sustainable products, with those making ESG-related claims constituting 56% of total U.S. retail growth.
Younger generations are leading the change. 73% of Gen Z and 60% of Millennials say they will pay more for sustainable products, with many prioritizing sustainability over brand name when making a purchase. Gen Z’s impact is even crossing generations, with older consumers increasingly embracing similar tastes.
The numbers create the same picture: sustainability is not a niche phenomenon but a mainstream force shaping the global economy.
Sustainability and Brand Loyalty.
Not only do ethical practices appeal to customers, but also enhance retention. Research indicates that sustainability drives trust, emotional attachment, and repeat business.
90% of customers are more likely to believe in socially responsible businesses, and customers who believe in a brand are 67% more likely to remain loyal, as per the Edelman Global Trust Barometer. Research also discovers an increasing segment of “ethical loyalists” who will keep on supporting those brands that incorporate their personal values, even in the face of less expensive options.
In reality, brands that effectively tell the story of genuine sustainability commitments tend to record more repeat purchases and word-of-mouth advocacy. The connection between purpose and loyalty isn’t something theoretical anymore; it is quantifiable and increasing.
How Small Businesses Are Leading the Way.
While once the purview of multinational corporations, increasingly, the best examples today are coming from small businesses.
Hola Manolo!, a Mediterranean food brand, teamed up with Plastic Bank to prevent ocean-bound plastic waste. The project assisted the brand in gaining B2B partnerships throughout Europe as well as bolstering local customer loyalty.
Mamaearth in India started out as a toxin-free baby-care brand centered on natural ingredients and recyclable packaging. Its sustainable positioning enabled it to expand into one of the country’s quickest-growing personal care companies, worth more than ₹1,000 crores.
Other inventors have created new markets out of trash. Millions of PET bottles are recycled every day into jackets and T-shirts by EcoLine, and Tengin has a zero-waste coconut business that utilizes the entire fruit. Currensea, a fintech startup, enables cardholders to cancel out plastic waste with each purchase, demonstrating that sustainability-fueled differentiation isn’t limited to tangible products.
Throughout these examples, the thread is evident: sustainability brings real value, enhances brand reputation, and increases resilience in competitive economies.
Small Changes, Big Impact.
Substantive sustainability is not always about grand overhaul. Even modest efforts can impact customer attitude and sales.
- Eco-packaging: A soft drink company replaced traditional packaging with 100% recycled material and experienced a 30% boost in sales after relaunch.
- Fair-trade labeling: In one U.S. study, Fair-Trade coffee sold more than the non-certified equivalent by almost 10%, even at a higher price.
- Small-batch production: Studies indicate that 81% of shoppers are willing to pay extra for limited-edition apparel, linking it with quality and accountability.
- Eco-packaging perception: Surveys suggest that 63% of shoppers feel sustainable packaging enhances their image of a brand.
Each of these cases demonstrates the way straightforward, focused measures of sustainability can enhance brand differentiation and align with customer values.
Getting Across the Message of Sustainability
The most effective sustainability stories are authentic. Consumers today are extremely sensitive to authenticity and immediately sense insincere or overblown claims. Truth needs to be told.
Brands that explicitly articulate the intention and effect driving their sustainability decisions are in a better position to establish trust. It can be as low-key as highlighting sourcing facts, reporting quantifiable progress, or featuring individuals behind the products. Small businesses, for one, leverage the benefits of proximity and narrative, two things that establish trustworthiness and emotional affinity.
A Strategic, Not Just Ethical, Advantage
Sustainability is today a core business strategy, and not an ethical aside. It creates differentiation in saturated markets, builds loyalty, and draws talent and partners of like mind.
For small businesses and startups, this is a chance to pioneer, rather than be a follower. By being agile, transparent, and authentic, moral practices can be both a competitive advantage and a source of long-term growth.
Those brands that approach sustainability as fundamental to how they are, and not an afterthought, will be the ones to survive as consumer expectations continue to grow.
Sagar Singhvi is founder of Singhvis, a brand built around handcrafted apparel, accessories, and home décor. Singhvis is rooted in the centuries-old craft of Indian block printing, and work closely with artisan communities to create pieces that honor traditional craft while appealing to modern tastes.
