As Forbes puts it, “the path to millennial spend is paved with transparency.” Millennials are spending a reported $600 billion each year, and that number only continues to grow. So, what does this lucrative consumer base want? Transparency. 94% of consumers say they’re more likely to be loyal to a brand that offers complete transparency, about everything from ingredients, to sourcing, to brand mission.
The demand for radical transparency has businesses changing the way they run—both day to day and on a grander scale. Take Julie Fredrickson for example, co-founder of Stowaway Cosmetics, a company that offers shrunken versions of makeup for those on the go. In a massive move of transparency, Fredrickson detailed her entire lipstick manufacturing and formulation costs to Racked, from her packaging choices to her ingredients sourcing. Why? Because Fredrickson knows that transparency, even objectively risky transparency (like telling consumers how much you profit from their purchase) is the key to building a loyal client base. Besides, Fredrickson says, “When it comes down to it, I’m a capitalist, and I’m trying to get you a great product.”
Another brand known for radical transparency is Beauty Pie, a company that sells makeup and skincare to members who pay a monthly fee. The site lists the cost breakdown of each product using categories such as packaging, warehousing, and safety.
For the full story, head to Racked.
Photo: RawPixel via Unsplash