Sustainable Equities Consumer Brands
Loyalty, Price, Emotion
At its core, the lifestyle theme encompasses the needs, wants, and aspirations of the growing global consumer. Consumer brands have a long tradition of success bringing products with strong appeal to their customers. For instance, few people realize that some consumer companies have been successfully selling virtually unchanged products such as watches (Vacheron Constantin or Breguet) and beverages (Moët Chandon and Schweppes) for the past 250 years. Taking a lifestyle approach means moving beyond the fads of the moment and recognizing and predicting the underlying secular patterns that drive consumers.
“A strong brand identity can create an emotional relationship of trust, credibility and quality, which represents a powerful asset; most companies with a strong brand are proven price makers.”
Our investment process is underpinned by our pioneering approach to sustainable investing. In our view, you cannot run a brand unsustainably. Adopting sustainable practices is absolutely central for brand-centric companies. For example, according to Nielsen Market Research (Oct. 2015), 66% of global consumers are willing to pay more for products with a positive social and environmental impact.
Several studies have shown that this figure goes up for millennials which means that, generally speaking, successful brand-centric companies inevitably strive to adopt sustainable practices. Environmental damages, product quality issues or involvement in controversial businesses can cause serious damage to a brand. High quality companies tend not to want to jeopardize their carefully-built brands and heritage by chasing short term profits. This provides a strong tailwind to our sustainability approach.
Our strategy is managed by Jean-Charles Belvo and Pierin Menzli, two experienced investment professionals.
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