By the year 2050, our planet is expected to be home to more than 10 billion people. With every passing day, week, month, and year the number of resources consumed increases. This trend has led to an increased awareness of conserving our resources, reducing our carbon footprint, and preserving our planet for generations to come. It is more than just a fad. It is a lifestyle change that we are seeing not only in our daily lives but in the economy as industries slowly transition from a linear economy to a circular economy. As the circular economy gains traction, it is important that your brand is geared towards being a leader in this progressive economy. Success in the circular economy begins with a phenomenal branding strategy and implementation. This is your guide to the importance of branding for the circular economy.

What is the Circular Economy?

As you already know, the traditional economy, also known as the linear economy is based on a 'make', 'use', and 'dispose of' cycle. It is a straight line, hence its name. A non-significant amount of product and material at the end of the cycle makes its way back to the beginning of another cycle. On the other hand, the circular economy focuses on eliminating waste out of the cycle. The model takes into account that there are finite resources and focuses on recycling as opposed to by-products and waste ending up in landfills. This is accomplished by keeping materials within a closed loop. 

As beneficial as the circular economy is, it takes more than just being a part of the circular economy for your company to be successful. It takes effective brand building.  

Importance of Brand Building for the Circular Economy

As you transition your business processes to fit the circular economy, it is as equally as important to make sure that your branding is reflecting this change. Let's take a look at how your company's branding design should reflect the circular economy.

Environmental and Social Awareness

Consumers care about the world around them and want to leave it a better place for the children, grandchildren, great-grandchildren, etc. More attention is being paid to going green, reducing carbon footprints, and finding alternative sources of energy. These customers will change their buying behavior in favor of brands that align with their values. It is crucial that your branding elements, including graphic design, convey your company's dedication to preserving the planet. One glance should tell potential consumers that your company is one that has environmental and social awareness.

Huge Opportunities

Although adopting a circular economy model has its challenges, it also provides tremendous opportunities for brands. These include the potential for: 

• A greater degree of connection with your consumers

• Increased personalization

• A more loyal customer base

Effective branding can help you capitalize on these advantages. It is important to ensure that along with design, your brand's promise, values, and voice resonate with customers on an emotional level that inspires a sense of loyalty. When your target audience looks at your brand, are they drawn in and compelled to what your company stands for?

Be a Pioneer

With the adoption of the circular economy model being slow-go and few currently in the space, companies across every industry are racing to be among the first to become known for successfully making this transformation. Brands that achieve this will gain a monumental amount of cred, trust, and loyalty among their target audience. This means that when consumers see their logo, they will automatically associate the brand with the values that mean the most to them.  Effective branding clearly conveys your company's values and mission. 

It is important to remember that companies in the circular economy are not just competing with other businesses with the circular economy but also with those in the non-circular economy. 

Overcome Higher Costs

The process of recycling and repurposing materials in the production process can lead to slightly higher production costs as there is more labor needed to make the process come full circle. A well-thought-out branding strategy can help your company overcome and mitigate these additional costs. Effective branding will convey to consumers the quality of your product and the sustainability of the manufacturing process. 

Design for Durability

Many brands are turning towards redesigning products for consumers that last longer using recycled and reusable materials. Longer lasting products mean that consumers feel as if they are getting better value for their money. This creates strong brand loyalty among your customer base.

The right branding design tells the story of how and why your company's products are a great value for consumers' money.

Growth and Scale

Times are changing. Gone are the days of traditional linear economy models. If you want your company to grow and scale globally, you must make sure that your brand design is a reflection of what consumers want and easily conveys this to everyone who sees your products.

Stand Out From Your Competitors

Fortunately, the technology already exists to transform your company for the circular economy. However, effective branding is what makes the difference between your company standing out and blending in with the crowd. It is about creating an emotional connection with your audience and connecting with the strong emotional desire of consumers to do good for the planet and mankind. Before your brand can make a meaningful connection with its audience, your branding must first grab their attention. After all, if nobody notices your brand, they will not connect with it. The graphic design of your brand is the crucial element to "making heads turn.” 

It is then up to your brand's promise, values, voice, and positioning to tell the story of who your company is, what it stands for, and what it has to offer your target audience.

Branding for the Future

THAT Branding Company is creating visions one brand at a time and we are proud to be Climate Positive by taking out a SeaPigs x Forest Carbon Climate Positive Subscription. 

Contact us today to learn more about how we can help you take your brand's customer relationships to the next level in the circular economy.