How Ethical Brands can Compete with Planet-Destroying Giants on Facebook & Instagram
I’m going to start by sharing some really depressing stats. But, stay with me because I’m going to turn it around pretty quickly!
The bad news:
Temu spent $2bn on Meta in 2023 and $386 million on advertising in the first four months of 2024 alone—and parent company PDD shows no signs of tightening the purse strings.
Shein spent between $300 and $400 million in 2023 on marketing and customer acquisition, per estimates by Bernstein analyst Robin Zhu reported by The Information.
Reports suggest Temu was losing roughly $7 on every order. This tells me they don’t care about making short-term profit, they care about market penetration. And it’s paying off, with repeat purchases increasing.
The good news:
But… here’s the thing… there’s a massive opportunity here.
You can’t compete with them on price. But you can compete with them - and smash them out of the water - on other things. Things that consumers are telling you they want. And I have the research and stats to back it up.
What are your consumers telling you they want, and how can you position yourself as the solution to their problem?
What your customers want #1 - to reduce consumption
36% of Australian consumers have the aim of reducing overall consumption.
How you can give them what they want:
Quality over quantity, right?
Buy well, buy less.
Can you run a campaign that shows how your product can be worn 30 ways, or reused, or will last longer.
What your customers want #2 - value for money
48% of Australian consumers are actively seeking value for money.
How you can give them what they want:
Value for money doesn’t equal cheap crap.
Demonstrate how you can style one piece for all seasons.
Show your customers the value and how over time your product will save them.
What your customers want #3 - lower carbon footprint
68% of Australians say they are willing to pay more for a product that has a lower carbon footprint.
How you can give them want they want:
Tell stories
Show the footprint of the alternative
Highlight your initiatives
Do some research and highlight your findings
Be a leader in this space
Do one thing to reduce your carbon footprint today
What your customers want #4 - locally produced/sourced products
76% of Australian consumers are willing to pay more for locally produced/sourced products.
How you can give them want they want:
Story-telling
BTS
Share your sourcing story
What your customers want #5 - production enjoyment
A research paper in the Journal of Marketing found that buyers are willing to pay more for products made with joy
A study in the Journal of Marketing Research found that when sellers expressed genuine enjoyment in creating their products, buyers are willing to pay more.
This taps into the psychology of perceived value when we see joy in the process we assume the product is higher quality, more authentic, and crafted with care.
Joy signals craftsmanship, passion, and attention to detail.
Things we instinctively associate with value. The higher the perceived value the more we are likely to pay.
How you can give them want they want:
Share your development, making and packing process.
Share the genuine joy that you get from bringing your product to life.
Final thoughts
So, like I said, you can’t compete with planet-destroying brands on price. But you can absolutely smash them out of the water in other areas. Do that.