Rutu Mody-Kamdar
Oct 14, 2024

Opacity breeds distrust; transparency leads to brand credibility

India's evolving consumer market demands higher brand trust, as traditional credibility measures fade and discerning customers set new standards, notes Jigsaw Brand Consultant's founder.

Opacity breeds distrust; transparency leads to brand credibility

A few days ago, while wandering through a high-end supermarket, I was amused to see so many people carefully examining the reverse sides of product packages, scrutinising ingredients and other details before making their selections. As I contemplated a new shampoo brand, I realised that my decision to change was not due to a shift in the brand itself, but rather a change within me. Like many others around me, I had become more discerning.

Now, I wanted to know more than just the price of the shampoo. I was curious about how well it cleans, its ingredients, and its manufacturing location—was it locally manufactured or imported? Did it genuinely promise natural ingredients and ethical manufacturing practices? Most importantly, could I trust the brand’s claims, or were they merely clever marketing tactics?

In India, trust in brands has always been anchored in familiarity—brand names that have existed for decades were almost automatically trusted. However, trust and credibility have moved beyond mere brand names today.

While it is easy to assume that terms like sustainability, ethics, and transparency drive this shift, the reality is more nuanced. Ethics and transparency have taken centre stage, but sustainability is still a distant conversation for most Indian consumers.

Redefining trust

For a long time, the Indian consumer was loyal to what was known. We placed our faith in brands that existed for generations, assuming that since our parents used them, they must be good.

However, this form of inherited trust has slowly eroded. The modern Indian consumer, with greater information access, now demands more than just a familiar name. The markers of trust have shifted from ‘I have always used it’ to ‘Can I trust this brand?’

Interestingly, this change reflects a broader, cultural shift in India. In a society where people have traditionally bought brands through word of mouth and habit, social media and online reviews have largely democratised trust. Imagine the impact a bad review may have on the brand’s trust and legitimacy.

A single low rating may cause harm to even the most reputable brands. Today’s Indian consumers seek something more tangible--they want to see authenticity, values, and ethics in action.

Ethics at play

Ethics has quickly emerged as a key determinant of trust. For the modern Indian consumer, it is no longer just about how good a product is—it is about how the brand behaves. Is the company fair to its workers? Does it follow socially responsible practices?

Consider the case of Tata, one of India’s most trusted brands, not only because of its products, but also because of its ethical practices. The group's legacy of fairness, from providing employees with social security benefits—long before they became mandatory by law—to its philanthropic ventures, creates a deep reservoir of trust. The consumers feel that by buying into the brand, they are supporting something larger than themselves—a value system they believe in.

Ethics also plays a role in how brands are perceived during the time of crisis. When Tanishq (a Tata brand) faced a backlash for an ad promoting interfaith harmony, its decision to pull out the ad met with mixed reactions.

Some felt the brand caved in due to public pressure, while others saw it as a move to protect their employees from a potential harm. In both cases, the conversation around Tanishq was not just about jewellery—it was about values. This is a prime example of how ethics and a brand’s response to societal pressures shape the consumer trust.

Openness matters

If ethics is the foundation of a brand, transparency is about clarity. Today, the Indian consumer wants to know not just what goes into their products, but also how brands operate behind the scenes. They want a clear view of sourcing, production, and pricing. Opacity breeds distrust, while transparency leads to credibility.

In an age of increasing digital literacy, consumers are looking for honesty. Several D2C beauty brands such as Mamaearth, The Minimalist, Plum Cosmetics, and Wow Cosmetics, for example, have built their identity around transparency—boldly labelling their products as toxin-free and listing all ingredients openly. Such openness assures consumers that the brand has nothing to hide, thereby fostering trust.

Transparency also applies to communication during crises. In a country like India, where a word travels fast and news spreads faster, how a brand manages a PR disaster can make or break its reputation.

Consumers do not expect brands to be perfect—they expect them to be honest. The willingness to own up to mistakes and accountability are becoming essential pillars of trust.

Too early to talk sustainability?

While ethics and transparency are gaining traction, sustainability is still far from being a mainstream conversation in India. It is not that consumers are unaware of the environmental impact of brands, but the concept of sustainability as a driver of brand trust remains elusive for most.

The reality is, for many Indian consumers, sustainability is still a ‘nice-to-have’ rather than a necessity. People are not yet asking the tough questions: Where does this product come from?What is its environmental impact? How does this brand handle its waste?

The reason for this disconnect is two-fold. Firstly, the Indian market is still very price-sensitive. Secondly, the concept of sustainability has not been culturally internalised in the way ethics and transparency have.

While brands like Fabindia or Forest Essentials have carved out a niche for themselves by promoting sustainability, they are largely catering to urban, affluent consumers who can afford to pay a premium for eco-friendly products. For the average Indian shopper, other concerns—price, efficacy, brand trust—still hold the upper hand.

This does not mean sustainability will not become a bigger conversation in the future, but for now, it is not the driving force of trust that many brands may hope that it will be. Brands that want to foster trust in India need to focus more on ethics and transparency—values that resonate deeply within the cultural fabric of the country.

Building credibility

As India’s consumer landscape becomes complex, brands must recognise that trust is no longer a one-size-fits-all concept. While legacy and reputation still play a role, the modern Indian consumer is looking for more. They want brands that are ethical in their practices, transparent in dealings, and, at least for a growing segment, mindful of sustainability.

In the end, trust is built not just on what a brand promises, but on how well it delivers on those. And in a country like India, where trust is both inherited and earned, brands need to adapt to these new symbols of credibility—or risk being left behind.

- Rutu Mody-Kamdar, founder, Jigsaw Brand Consultant

Source:
Campaign India

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