Reno Sami, Manager, School Uniform Project, Plusminus Basel, Switzerland, observed that consumers often spend too much money on branded goods: according to surveys, he said, "70% of consumers said they would become indebted in order to follow fashion". The big brands, he stated, make false promises and behave irresponsibly.
Sir Martin Sorrell, Group Chief Executive, WPP, United Kingdom, disagreed, arguing that the choice of a brand is up to consumers and is an expression not only of what they like, but of who they are. "It isn’t just copying fashion," he said, "it is an emotional experience to choose a brand. I have no problem with that." However, Sorrell agreed that corporations should be careful not to seek to indebt consumers in order to increase sales. "The responsible companies should not do that," he said. "And the trend is for companies to take corporate social responsibility increasingly seriously. You can’t find a CEO today who would say that the environment isn’t his concern or that corruption isn’t important."
On a deeper level, Sorrell commented that with the evolution of information technologies, consumers are enjoying rapidly growing power regarding the choices they make. "There are blogs, citizen newspapers and even homemade films," he explained. "They go over the Internet and consumers react to them – immediately." It would be a great mistake to underestimate the critical intelligence of consumers, he observed. Their choices, based on such information, will vastly enhance the efficiency and the effectiveness of the free market – "one of the most powerful mechanisms created". Corporations, he remarked, are taking notice. "This is a really great thing," he concluded.
Sami argued that consumers need to be educated about their credit habits, which the public sector has rarely proven capable of doing. He said that some regulation might be required to protect certain consumers from false-advertising claims. This is particularly true for children and adolescents, who are less informed and more vulnerable to peer pressure.
Sorrell again disagreed, stating that consumers have to exercise their choice, which is their personal and social responsibility. "It should begin in the home," he said. Kathleen Ix, Student at the International School of Geneva, stated that as a student she does not feel compelled to buy brands. "My parents brought me up to think about how I spend money," she said, "so I am very conscious about what I think is a good purchase." Her experience delighted Sorrell, who said that Ix’s family is a great example of informed consumers exercising their power.
The debate concluded with a description by Sami of the experimental programme he ran to get students to accept school uniforms. The students considered uniforms created by four young designers. Once they picked the prototype, they helped to design the final choice. "For the programme to work," Sami explained, "the students have to engage in a real debate on what a brand is, but also on their identity and what it means to them."
Don't know about you, but I don't give a Reebok's damn about brands. Wouldn't let that affect my personal ego-buying decision for all the MP3s in the universe.
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