Establishing and maintaining brand loyalty is a dynamic feat today. With so many new brands popping up, reaching and maintaining a customer's attention requires examining every step of your procurement process. Couple that with ensuring compliance while regulatory requirements are in a constant flux— strategy really is the name of the game. Companies that prioritize quality sourcing not only safeguard their reputation but also build a loyal customer base and mitigate risks associated with legal and ethical violations.
Consumers today are more informed and discerning, often scrutinizing the origins of the products they purchase, and for good reason. As marketing reach continues to blossom through social media, there are many opportunities for misinformation. Take greenwashing for example. Last year I dove into the practice and discussed how the FTC is working to combat the act. High-quality sourcing assures customers that the products are reliable, safe and ethically produced. And when a brand consistently delivers superior quality, it show in their customer base.
For example, Williams-Sonoma recently underwent a $3.17 million settlement for false “Made in the USA” claims when the FTC found a number of its products to have actually originated in China. When investigated, the retailer was not able to provide proof that materials were sourced in the U.S. and Katrina Duck, enterprise account executive at Inspectorio, explains the fallout.
"We expect to see, as a result of this case, an increased focus on due diligence from a sourcing side. Legal teams will demand appropriate documentation to address claims from the consumer base in regard to labelling laws like this one, as well as other consumer protection legislation both in the U.S. and abroad," says Duck. "My suggestion for brands and retailers is to ensure that if you’re going to make any claims about origin of source, country of origin or sustainability, there is always documentation to back this up, and it must be readily available to show regulators.”
Quality sourcing is fundamental to building and maintaining brand loyalty and ensuring regulatory compliance. It enhances consumer trust, supports a brand’s ethical stance and mitigates risks associated with supply chain and legal challenges. As the market continues to evolve, the emphasis on sourcing will continue to grow and its importance will stand as a strategic priority for the future.
