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2.3.2011 Brands face a "dilemma"

Brand owners must confront the "consumption dilemma" that threatens their long-term growth prospects, Deloitte has argued. The consultancy suggested several megatrendscurrently at work around the world - especially the emergence of a new middle class in developing nations - are radically reshaping the trading climate. "Even as economic disparities between countries and within countries increase, and even as the bottom billion risks being left behind, globalisation has created new markets and new consumers," the company stated.

Perhaps the largest challenge is the expansion of the global population, set to reach 9bn people in 2050, measured against 7bn at present. "As it stands, humanity's ecological footprint is 50% greater than earth's capacity to support it. Unchecked, humanity's ecological footprint could rise by a further third by 2030," Deloitte said. "To decouple consumption from natural resource use and environmental degradation, we need to purposefully decouple narrow concepts of GDP growth from broader qualitative objectives: prosperity and well-being."

Unilever, the FMCG specialist, has outlined plans to achieve just this goal, announcing a range of targets enhancing its sustainability performance. These incorporate initiatives such as sourcing materials like palm oil in ethical ways, and encouraging shoppers to pursue more environmentally-conscious forms of behaviour.

Retailer Carrefour has championed similar activity, attempting to cut energy consumption by 30% between 2004 and 2020, alongside stimulating customers to "adopt responsible habits". The hypermarket operator also now holds annual awards recognising suppliers that have made headway in areas in keeping with its own priorities, like "managing waste" and "practicing social responsibility".

B.L. 2.3.2011