Businesses must move from ‘growth’ to ‘good growth’: Adam Gerhart

As the world becomes more sensitive and aware about sustainability and inclusive growth, brands can’t afford to chase the old parameters of growth and in fact, should be looking at creating ‘good growth’ for themselves, Mindshare Global CEO Adam Gerhart emphasised during his address at the 21st e4m Conclave on Monday evening.

Speaking virtually, Gerhart highlighted that brands must realise that consumers of today have grown from the boundaries of physical geography and most of them are digital natives whose views, preferences, and choices are formed by the digital platforms they are present on.

He said, “The biggest difference that's shaping the world around us today is that the biggest and the largest concentrations of consumers are no longer just in geographies; more and more consumers are concentrated and defined by global digital platforms. Our ability to deliver growth sustainably in the future is more and more by the fact that transformation will be dominated by these platforms and the impact that they have on our consumers’ lives.”

He added that 50% of the fortune 500 companies today might lose their status in the coming years as they are not moving forward in line with the era of digital transformation and are failing to harness the opportunities that such platforms provide.

Gerhart also emphasised the need for brands to work for a purpose and look beyond just numbers to measure growth and success. He shared case studies of Dove’s #StopTheBeautyTest and Pepsi’s partnership with Swiggy for the “Save Our Restaurants” campaign to deliver the message of how brand growth and contribution towards positive changes in society can go hand-in-hand.

He highlighted, “Growth and good growth shouldn’t be at odds in the future. Brands must actively be looking for solutions that are not just good for them but also for the people.”

After his presentation, Gerhart in a tête-à-tête with exchange4media Group’s Founder-Chairman Dr. Annurag Batra also spoke in detail about data ethics and the responsibility of businesses towards consumer interests and information.

“As marketers and advertisers, we have to realise that we have to shift our focus from being oriented towards the aggregation of data to the application of data. In other words, understanding consumers, what type of information they allow (us to access), and how we can best serve them should be at the forefront of our consideration factors. One of the areas that we're leaning into very aggressively is data ethics. Just because we've been collecting information on consumers, doesn't necessarily mean that we should. And so, I think we will start to see much more data by design or data that we are collecting only if it is in service of consumers and only if it is permission-based around the world,” Gerhart elaborated.

On being asked by Batra, how does he see the future of D2C and hybrid brands balancing data with ethics; Gerhart responded by saying that both forms of business today have consumer centricity and a better awareness towards their consumers wants and their purposes in common.

He shared, “I would say understanding risk tolerances and understanding true consumer journeys is the first thing that makes them similar. Secondly, they have started to think about the application of data and how it can be best leveraged to unlock a more meaningful dialogue with the consumers. Next, how do you create a more meaningful feedback loop so that you understand what's working, not only for your business but also for consumers and I think there's going to be a facet of listening, moving forward.” 

Concluding the conversation, Gerhart highlighted the importance of compassion, change, and consistency to deliver business results that are sustainable, future-focussed, and serve well the society and people along with creating financial growth.