Marketing transparency in the Swedish Textile Industry- DIVA
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Marketing transparency in the Swedish Textile Industry - A thesis about marketing transparency on digital platforms Master’s Thesis 15 credits Department of Business Studies Uppsala University Spring Semester of 2021 Date of Submission: 2021-06-02 Alice Pettersson Martina Reinli Supervisor: Philip Kappen
ABSTRACT This research project contributes to understanding how Swedish textile companies use sustainable marketing to express transparency on digital platforms and official documents. Are marketing efforts transparent among firms that promote a clear sustainable focus by not misleading readers? The chosen qualitative methods were document analysis evaluating approximately 91 documents combined with content analysis with 15 Instagram posts analysing how firms transparently express their sustainable focus and offer. The results showed a connection between understandable motivating sustainable statements, proactive approach and vital transparency. It also indicates a link between vague defensive statements and greenwashing tendencies based on inattention writing rather than purposely misleading the reader with unmotivated values. Marketing efforts are generally not transparent in the Swedish textile industry among firms that promote a sustainable focus. Upcycling showed more transparency than rental and second-hand segments. Sustainability is expressed more clearly and directly in transparent firms and has more potential to spread accurate information to customers leading to a positive influence on sustainable consumption. Transparency indicates to be a more competitive tool in sub-industries where sustainability needs to be more addressed to explain the products or services to attract customers that otherwise could be lost. Keywords: Transparency, Sustainability, Marketing, Communication, Textile Industry.
TABLE OF CONTENTS 1. INTRODUCTION .............................................................................................................................................. 3 2. LITERATURE REVIEW ................................................................................................................................... 5 2.1 TRANSPARENCY IN ORGANISATIONS ............................................................................................... 5 2.2 MARKETING AS A COMMUNICATION TOOL .................................................................................... 6 2.3 CONCEPTUAL MODELS .......................................................................................................................... 7 2.3.1 THE GREEN MARKETING STRATEGY MATRIX ........................................................................ 7 2.3.2 THE VALUE LINKING CHAIN ........................................................................................................ 8 3. EXPECTATIONS .............................................................................................................................................. 9 4. METHOD ......................................................................................................................................................... 10 4.1 SAMPLE.................................................................................................................................................... 10 4.1.1 TEXTILE LANDSCAPE IN SWEDEN ............................................................................................ 10 4.1.2 STEP 1 - CREATING SELECTION LIST ........................................................................................ 12 4.1.3 STEP 2 - CONTEXTUAL VARIABLES FOR EXPLORATORY SELECTION ............................. 13 4.1.4 STEP 3 - SIMPLE RANDOM SELECTION & CONFIRMATION OF EXPLORATORY SELECTION ............................................................................................................................................... 15 4.1.5 CREDIBILITY & VALIDITY IN SAMPLE SELECTION .............................................................. 16 4.2 DATA ........................................................................................................................................................ 17 4.3 QUALITATIVE METHODS .................................................................................................................... 18 4.3.1 DOCUMENT ANALYSIS ................................................................................................................ 19 4.3.2 CONTENT ANALYSIS .................................................................................................................... 22 4.3.3 FLOWCHART OF RESEARCH METHODS ................................................................................... 24 5. RESULTS ......................................................................................................................................................... 24 5.1 DOCUMENTS AND VARIABLES .......................................................................................................... 24 5.2 RENTAL SUB-SEGMENT ....................................................................................................................... 25 5.3 SECOND-HAND SUB-SEGMENT .......................................................................................................... 30 5.4 UPCYCLING SUB-SEGMENT ................................................................................................................ 36 6. DISCUSSION ................................................................................................................................................... 43 6.1 LEAN GREEN MODEL ........................................................................................................................... 43 6.2. DEFENSIVE GREEN MODEL ............................................................................................................... 46 6.3 SHADED GREEN ..................................................................................................................................... 49 6.4 EXTREME GREEN .................................................................................................................................. 51 6.5 INDUSTRY DISCUSSION BASED ON SUB-SEGMENTS ................................................................... 54 6.6 CONTENT ANALYSIS DISCUSSIONS.................................................................................................. 57 6.7 CRITICAL ACKNOWLEDGEMENT ...................................................................................................... 57 6.8 FUTURE STUDIES .................................................................................................................................. 58 7. SUMMARY AND CONCLUSIONS ............................................................................................................... 59 8. REFERENCES ................................................................................................................................................. 62 APPENDICES ...................................................................................................................................................... 71 2
1. INTRODUCTION This research study is about receiving an understanding of how Swedish Textile companies use sustainable marketing to express their transparency. It is an exciting and essential topic because marketing today is a common challenge regarding organisation transparency and goodwill in communication (Hartmann et al., 2020, p.68). Marketing transparency affects how customers receive and adapt to information and affect their consumption behaviour and the world economy. There is currently a development towards a circular economy where sustainability and economy work together (Unido, 2021a). Human resource professor Carolyn Ball describes three types of transparency metaphors: transparency as a behavioural norm or value to overcome corruption by spreading information to the citizens, transparency as openness and availability of information in regulations, and transparency as a policy analysis where transparency clarifies policy development (Ball, 2009, p. 303). Levay and Waks describe transparency as an insight into understanding the surrounding technologies, surveillance, genetics and information technology (Levay and Waks, 2018, p.11). We know something about transparency in marketing communication. Steven Sampson is a professor in social anthropology and has researched within the private sector discussing business perspectives on corruption and unethical work. In his article, The Morality of Transparency: Clarity versus Emptiness, transparency is described as a policy to please external investors, sponsors and the public. The meaning of analysing transparency in a project, organisation or case is to discover knowledge and to be able to apply this knowledge to make an organisation, resulting in efficiency and avoiding the risk of creating mysteries. Furthermore, Steven Sampson's has two perspectives on transparency: clarity and emptiness as definitions contribute to a deeper understanding of how truth can be found by following a set of strategic calculations that can help to clarify how transparency is expressed (Sampson, 2019, n.p.). Gupta and Manson explain that transparency is often related to openness in being the opposite of secrecy. According to Gupta and Manson, private actors who favour transparency voluntarily encourage actors to act towards sustainability goals and avoid regulations. Transparency can hold government or private actors accountable to see transparency from government and private actors as a morally grounded right to information (Gupta and Manson, 2014, p.5-6). Another study has concluded that transparency is essential for governance and communication (Hood and Heald, 2006, p.62-63). Marketing on social media has increased, resulting in The Swedish Consumer Agency creating guidelines for what regulations need to be considered when marketing on social media. The procedures include instructions to avoid 3
posting unclear and confusing content to consumers (Konsumentverket 2020a). From a critical capitalism perspective, companies should reflect society's expectations and find a way to gain profit that supports humans' sustainable expectations by communicating transparently (Henderson and Sjölander, 2002, p.11,47). Transparency is present when reporting corporate change. CDP, a charity that uses universal disclosure systems for i.a. companies to overcome the environmental impact yearly, presents the CDP scoring that unlocks corporate transparency to boost change. Last year, 2020, 9,600 organisations were disclosed by them, and the number has risen 70% since the Paris agreement (CDP, 2020). Yet, there are still gaps in our knowledge, and very little research about transparency in sustainable marketing is known, which is the topic that will be addressed from the theoretical and empirical perspective. A study has found limited research about sustainability from the marketing perspective, even if there is a growing interest in the topic area. Sustainable thinking needs to be more addressed in marketing communication and educating consumers to minimise the risk of future generations' survival (Ottosson and Parment, 2015, p. 183.). Another study has found that building trust with customers on social media is essential for firms e-commerce where transparency and honest content should express company values (Philippot and Ejdemo, 2010, p.42). Overall there is a significant void in the existing literature. This is problematic because there is limited information about how company values and sustainable marketing are expressed in empirical findings. In other words, how sustainability is communicated in marketing. This study can contribute to an understanding of whether the company creates marketing that uses transparent information or whether there are questionable shortcomings despite statements. For example, tendencies of greenwashing if the information is inconsistent (Ottman, 2011, n.p.). The study investigates how organisations market their sustainable focus on digital platforms and official documents—specifically analysing if the marketing efforts are transparent in the textile industry among firms that promote a clear sustainable focus, meaning that the information provided is not misleading. The question focuses on two critical factors, Swedish textile companies and digital platforms. We draw on the data from 15 firms within the second- hand, upcycling and rental segment. The sustainable business focus compels the analysed company's documents and digital platforms using a qualitative method. The study is based on a communication outline and does not investigate what companies practically do. Our findings uniquely contribute to the transparency literature. 4
The remaining outline of the thesis includes the following main sections. In the next section, we explore the conceptual and literature review of transparency and marketing and expectations. The third section describes the samples, data and qualitative methods for the thesis. The fourth section describes results in each sub-segment, and the fifth section analyses the document results. The findings suggest that transparency becomes lacking when there is not enough information explaining the sustainable work described in the Lean Green group. Other findings found that information becomes misleading when bold statements are not motivated, leaving observers confused. Therefore, lacking transparency can cause greenwashing tendencies that could be prevented in the Defensive Green group. The Shaded Green group contributes to knowledge about transparency that can be further improved by naturally explaining sustainable work and values instead of holding back valuable expertise from the observer. The Extreme Green findings contribute to the knowledge of successful transparency marketing where understandable content and motivating arguments become a competitive tool and an inspiration for the textile industry. The industry sub-segment discusses why upcycling represented more transparency with a possible explanation of having a deeper pressure to justify their sustainable work in ways that comes naturally for the Renting and second-hand sub-segments. The content analysis investigated transparency on another digital platform resulting in relatively consistent findings. The sixth part presents the results and analysis, and the seventh section includes the discussion. The last section describes the summary and conclusion, and potential future studies. 2. LITERATURE REVIEW 2.1 TRANSPARENCY IN ORGANISATIONS Today there is a substantial body of literature on the topic of transparency. Transparency and democracy connect in the sense that humans have the right to know what's happening in the state and companies. In Swedish healthcare, reports, measurement instruments and follow-up report documents to show transparency where transparency quality cannot be hidden to the public. There are three important reasons to show transparency in an organisation: trust- building internally and externally, reports where measurements and mistakes can be found and transparency are present with or without the company's consent, if you as a company do not spread information, others will (Levay and Waks, 2018, p. 22). Transparency in an organisation can affect their work. The subject of transparency in organisations has received interests from researchers in different areas such as psychology, management and organisation science. An 5
emerging view is that transparency benefits organisations because it contributes to trust. Several articles mentioned that productivity and commitment within employment have decreased because of companies' non-transparency internally, for example, non-transparency when it comes to company goals, visions and policies (Brandes and Darai, 2017, p.189-190). Gupta and Manson reflect upon the importance of transparency in governance. The authors investigate the importance of transparent communication to customers since governance affects customers' ambition to purchase a product or service. Therefore, it is imperative to communicate transparently in marketing (Gupta and Mason, 2014, p.5-6). These theories show a gap to be filled to contribute to a better understanding of what transparency looks like in organisations such as the textile industry. 2.2 MARKETING AS A COMMUNICATION TOOL Today there is a wide range of different perspectives of marketing. The book Unboxing marketing, creating value for consumers, firms, and society by Hartmann et al. discusses sustainability in marketing and how that affects the entire value chain from product development to production. Sustainability is a trend that affects humans' lifestyle since awareness around environmental and social impact offers opportunities for companies to use marketing (Hartmann et al., 2020, p. 59-60). Guyader, Ottosson and Parment explain how firms create and express values and how sustainable marketing becomes a challenge, and where companies do not adapt to sustainability issues in the book Marketing & Sustainability - Why and how sustainability is changing current marketing practices (Guyader, Ottosson and Parment, 2020, p. 5-6). Dennisdotter and Axenbrant wrote Storytelling - an effective marketing tool and analyses marketing as a competitive strategy. When digital platforms are studied, it is fundamental to analyse marketing based on how customers can be a part of marketing by spreading the content. Therefore, it is essential to create a story compatible with the brand (Dennisdotter and Axenbrant, 2008, p.14). Dennisdotter and Axenbrant mean that Storytelling helps retrieve a reaction and communication with customers where a story can make a company sound unique with their offer. Therefore, Storytelling can make firms stand out from others by attracting and creating interest for customers (Dennisdotter and Axenbrant, 2008, p.17-18). According to Ottman, there are multiple strategies for establishing credibility for sustainable branding and marketing. Ottman claims that by following her approach, organisations can achieve credibility without being accused of greenwashing. Ottman also describes methods for sustainable marketing communication in her book The new rules of green marketing: strategies, tools, and inspiration for sustainable branding (Ottman, 2011, n.p.). Ottosson and 6
Parment found a lack of literature explaining the relationship between marketing and sustainability. They wrote the book Sustainable marketing: how social, environmental and economic considerations can contribute to sustainable companies and markets. The book encourages more interests and research into the subject by presenting analysing different parts of a firm (Ottosson and Parment, 2015). Business marketing : managing value creation by Kindström, Kowalkowski and Parment complexifies business value creation to build competitiveness and attract customer relationships (Kindström, Kowalkowski and Parment, 2021). The literature shows a gap to be filled with theoretical and empirical findings of marketing transparency with a sustainability focus. 2.3 CONCEPTUAL MODELS 2.3.1 THE GREEN MARKETING STRATEGY MATRIX The chosen model for the study is the Green Marketing Strategy Matrix since it combines both sustainability and marketing, the topic we are addressing and is more subtle than other models. The model draws upon the sustainability topic to present the findings structured to transfer information into categories. Four main types explain the evolution of sustainability in terms of how green they are. The Green Marketing Strategy Matrix categorises four different segments written by Ginsberg and Bloom. The four segments are as follows; Lean Green means companies trying to impact positively but do not put enough effort into marketing it to customers. The biggest obstacle is not wanting to sell products as green due to the high expectations of a green product. The second segment is Defensive green. Defensive green means that businesses use green marketing to create a better image and reputation. However, often these firms do not want to market sustainability often to avoid the responsibility of sustainability if they cannot fulfil the expectations. The third segment is Shaded Green. Shaded Green means organisations that constantly invest in long-term environmentally friendly processes but are careful with marketing their activities outwards regarding these investments. The last segment is Extreme Green and appears in companies that have a holistic approach. Environmental issues occur from production to the consumer. Since the demands on the market today are high for sustainability companies, communication can be confusing and misleading due to wanting to be perceived as green but mislead the observer. If a company's use green marketing implementation, it can increase the emotional relationship between companies and their consumers. Companies having a green image can result in brand loyalty. A key element in green marketing is credibility; to help minimise consumer scepticism, a company needs to have a good reputation and back up their environmental claims (Ginsberg and Bloom, 2004, 7
p.84). This model is beneficial to use to contribute to an understanding of transparency in different groups. Therefore, the model is helpful to show the relationship between transparency, communication, marketing, and sustainability in the industry chosen. The categories exist summarised in figure 1. Figure 1: The Green Marketing Strategy Matrix showing differentiability on greenness (Ginsberg and Bloom, 2004, p.81). 2.3.2 THE VALUE LINKING CHAIN The value linking chain shows how the company values affect the product and the customers. The model created by Classon and Dahlström is helpful since it practically states how company values and offer evaluation are compared and correlated, which can help analyse companies' transparency in marketing by transferable present in this model. The model was created to analyse CSR performance. The model is useful here since this study analyses the company's sustainable marketing and how they state to take responsibility and how that responsibility is presented in the offer (Classon and Dahlström, 2006, p.11). Therefore, the model is helpful to understand the relationship between values and offer in the chosen subject and draw upon new information about the connection between value focus and transparency. Figure 2: The Value Linking Chain with different elements of value and offer (Classon and Dahlström, 2006, p.11). 8
3. EXPECTATIONS In this thesis, sustainability, transparency and marketing are the main variables. The findings and literature are analysed from an organisational perspective to understand transparency in marketing. An appreciation for transparency from a marketing approach is vital because the context has a crucial effect on the perception of information communicated. The students expect an outcome where the company's sustainable expressions are not in line with each other on different platforms, which leads to a lack of transparency. Transparency can be misleading due to not being clear or motivated (Konsumentverket, 2021). In recent times there have been ongoing discussions where customers do not find companies' sustainable marketing transparent. For example, the Instagram account Greenwashing in Sweden, where Yrsa Lindberg, a sustainability communicator, highlights sustainability as a factor for deceptive marketing rather than a clear strategy (Lindberg, 2021). These tendencies of greenwashing marketing mean misleading customers on a company's positive environmental impact or environmental benefits of a product or service that they sell (Lindberg, 2020). Another example of consumers' growing awareness is the Swedish market sustainability report from 2019, where statistics express consumers' sustainable commitment. This makes sustainability a topic companies cannot hide from (Svensk Handel, 2019). All actors along the entire textile value chain need to make it easier for Swedish consumers to make more sustainable consumption choices. Companies offering climate and health adapted goods need to have clear communication (Naturvårdsverket, 2021b). Furthermore, it is crucial to present a straightforward sustainable approach to get credibility in marketing. A lack of a sustainable system could result in consequences for a company's revenue, and in some cases, the company's survival could be at risk (Verksamt, 2021). These factors make the textile industry a relevant industry to test the expectation and answer our research question. Therefore, the expectations are based on the current debates and adaptations, and we, therefore, believe that transparency criticism can appear when studying marketing as a third party. We expect that companies do not communicate sustainability transparently because few restrictions and regulations impact the chosen firm's sustainable communication (Riksdagen. 2021a; Riksdagen. 2021b). More often, transparency in sustainable marketing are initiatives based on the businesses' own ambitions and capabilities adapted to the Sustainable Development Goals guidelines and strategies for 2030 (CSR Sweden, 2021). The global guidelines were created In 2015 by The United Nations called the Global Agenda 2030. The Global Agenda 2030 consists of 17 goals with several sub-goals (Samordningsförbundet Göteborg Centrum, 2021). A 9
strategy to consider the global goals has a CSR approach with information about how companies intend to focus towards sustainable improvements. CSR is the responsibility of companies obligated to improve the impact they make in society based on finding a balance between economic, environmental and social aspects. These aspects are based on the company's needs and capabilities (Unido, 2021b). As a company, you need to use different strategies to help contribute to these three areas, but the companies themselves decide how to proceed. With the help of innovation, companies need to develop sustainable business models, products and services by ensuring that laws comply (CSR Sweden, 2021). Furthermore, global guidelines need to be taken into consideration. We believe that the chosen industry, method, theory, alteration of companies, variables, is a relevant tool to analyse transparency empirically to confirm or not confirm lack of consistent transparency in company marketing. The expectations can be perceived as a critical view of company marketing. 4. METHOD 4.1 SAMPLE 4.1.1 TEXTILE LANDSCAPE IN SWEDEN The textile industry is a growing industry in several areas. In 2019, the Swedish fashion industry had an income of SEK 380 billion and had increased 8,9% compared to the previous year. In 2019, 62 038 people worked in the textile industry in Sweden (TEKO, 2019, n.p.). See figure 3 for an outline of the Swedish textile industry in 2019. Figure 3: Presenting the total sales in 2019 in the different textile sectors excluding H&M (TEKO, 2019, n.p). 10
The multinational company H&M stood for 60% of the Swedish fashion industry in 2019. It is also interesting to know that 96% of H&M sales consist of their export sales. Therefore, the Swedish Fashion Association chose to present numbers with and without H&M due to the company standing for more than 50% of the Swedish market's sales (TEKO, 2019, n.p.). The total sales in the textile industry in Sweden is presented in table 1 below: Table 1: Presenting the total sales in the fashion textile industry in 2019, SEK billions (TEKO,2019, n.p.). Another aspect of the growing industry is the textile production process that significantly impacts the environment. The textile industry is one of the biggest emitters of greenhouse emissions globally and is responsible for using large amounts of natural resources during the production phase (Naturskyddsföreningen, 2019). Therefore sustainability concerns are present in the industry, and new sustainable strategies constantly develop in all parts of the supply chain. There is currently a shift in the textile industry where companies move from fast fashion to slow fashion, meaning a priority for textile quality rather than quantity that demands unnecessary waste. The size of the industry offers several focus areas in how to produce and consume textiles. The fast fashion industry is challenged by companies implementing second- hand, renting, exchanging, and in other ways focusing on creating more sustainable alternatives to customers (Röda Korset, 2020a). Various industries try to implement new circular business models with competitive alternatives to sell brand new products (Svensk Handel, 2021, p.47). The yearly Swedish report Swedish trade sustainability survey 2020 shows that second-hand renting and reusing is not a trend but here to stay. The report represents Sweden's consumer patterns: 46% of the consumers bought reused; everyday clothes 24%, shoes/bags/accessories 17% and party clothes 11% (Svensk Handel, 2021, p.48). 11
The consumers also rented; everyday clothes 2% party clothes, 3% and shoes/bags/accessories 2% (Svensk Handel, 2021, p.50). People also repair; everyday clothes 12%, shoes/bags/accessories 8% and party clothes 5% (Svensk Handel, 2021, p.51). 35% of Swedish consumers left their old textiles at recycling units during 2020 (Svensk Handel, 2021, p.46). Sustainable development within the Swedish textile industry is changing due to customer demands, business adaptation and external initiatives such as organisations, associations and regulations. This makes it beneficial to work sustainably in the textile industry in Sweden since it gives compatible strengths on the market where there are encouraging forces boosting sustainable development. Kairos Future has found different consumer groups valuing different perspectives of sustainability (Kairos Future, 2019, p.22-23). Textiles and sustainability are working more as allies even though it is still a process that demands more customer activity. A solution to help transparency towards customers is acknowledging third-party organisations by applying for sustainable certificates on services or products (Naturskyddsföreningen, 2021a). The emerging factors presented makes the textile industry interesting to study since it burdens the environment and can shift and be more sustainable with the help of customers (Naturvårdsverket, 2019). 4.1.2 STEP 1 - CREATING SELECTION LIST The strategy for composing the company selection was an exploratory selection, leading to new knowledge about a specific topic. The reason for using exploratory selection was to gain insights and information about companies in this study area (Lundén, 2020). The first step, when we started our selection of sustainable companies, we made a diagram listing a total of 83 potential companies that are illustrated in the Appendix (Appendix A: Creating selection list). This first draft was based on potential companies without specific delimitations in fashion and slow fashion. The companies were found by researching the Instagram media platform, where they mentioned sustainability as an essential factor for their work. The reason for choosing Instagram to find companies was due to personal interest and 12
knowledge of the platform. The companies were identified by using systematic research. Qualitative research is often about studying people, and therefore Instagram is suitable since it is a platform based on interaction (Punch 2005, p. 141-142). The process of Instagram made it relevant and easy to find potential companies due to the Instagram search tool, which suggests similar accounts when you click follow on a profile. With the help of the algorithm, we could find companies that previously were not known to the researchers. Therefore this selection process was decided as more suitable for this study than using, for example, other platforms such as Google search engine, which does not offer the same amount of appearance and relevant findings. 4.1.3 STEP 2 - CONTEXTUAL VARIABLES FOR EXPLORATORY SELECTION The second step, the exclusion of companies, had a diverse focus that did not fit in with the rest of the companies in the group. The exploratory selection aimed to collect companies with similar challenges and opportunities to reach an even more specific focus area (Linnéuniversitetet, 2021). We decided to focus on Swedish companies to conclude Swedish strategies and realised that this limitation needed to be made to receive a more suitable outcome. After excluding the non-Swedish companies from the list, we realised that three sub- segments within the textile industry were identified. These subcategories had a focus on slow fashion in common. Naturskyddsföreningen (SNF) have publicly announced that textile companies need to offer more sustainable solutions in their businesses to make the fabric last longer (Naturskyddsföreningen, 2021b). Therefore, these variables were important when conducting the qualitative analysis, and we identified three sub-segments as Second-hand, Renting and Upcycling. Second-hand clothes mean buying products that have already been used by someone else (Myrorna, 2021). Renting clothes means paying to borrow clothes for a limited time period (Miljö & Utveckling, 2019). Upcycling clothes means making a new product from an old one (Teli et al., 2015). The reason for choosing this exhausting variety of the slow fashion sub-segment was to have a perspective on more sustainable textiles than newly produced products. When the selection process began, the exclusion was based on a total of 9 contextual variables. We believe that these standard variables are essential since the different findings will be based on similar aspects of the textile industry. Preferably this will answer the questions of this thesis without unnecessary, inconsistent implications. The variables chosen are based on factors that suit the area studied and fill a gap in the knowledge that has not been studied before with specific sample traits in the industry. 13
THE 9 VARIABLES WERE THE FOLLOWING: ● The companies did not have a clear fast fashion or a trend focus ● The companies did not mainly sell new textiles ● The company had a clear focus on either second-hand, renting or upcycling ● The company had understandable sustainable information on their website at first look without any factors pointing at irrelevant information for the study ● The companies had a sustainable focus on their website at first look ● Exclude companies repeatedly included in previous studies to contribute to new research objectives in ways that have not been looked upon before ● All samples being Swedish companies ● All samples had a focus on clothing The companies were chosen because of their sustainable information online about the research question we aim to answer. A decision was made to study five companies in each category, including small and big companies, based on the number of employees and assets. The mix of big and small companies can bring different aspects of marketing. A study has shown that smaller companies with a lower turnover have a higher sustainability focus than companies with higher turnovers (Tillväxtverket, 2016, p.19). Due to this limitation, a couple of second- hand and rental companies that had to be excluded from the study were Rentroutine, Tise, Rerobe and Vinterie; These companies were not selected due to not having a developed website with sustainability information which was a criterion (ReRobe, 2021; Rentroutine, 2021; Tise, 2021; Vinterie, 2021). We also excluded Norrona and Varner Group since the companies are not Swedish (Norrona, 2021; Varner, 2021). The Red Cross and Erikshjälpen are similar organisations, both focusing on helping people in need (Erikshjälpen, 2021a), (Röda Korset, 2021). However, the Red Cross was excluded from the study since it is a much larger organisation regarding employees and total assets compared to Erikshjälpen (Erikshjälpen, 2020a), (Röda Korset, 2020b, p.27). Therefore, the Red Cross was not considered relevant since it would include many factors represented by its size and might bring information that is hard to limit to this study. We realised that second-hand were overrepresented when conducting the second sample step, meaning that the sample collection naturally included more companies in this subsection. This could have to do with second-hand sales on the Swedish market, which explains an increase of 14
15% during 2019 and is on the front of textile development. A reason for the significant rise in Second-hand alternatives on the market today can impact consumers' changing attitude and consumers' awareness of their environmental impact (Sveriges Radio, 2019). Speculation on why it was not as natural to research upcycling beliefs is that upcycling is not as common in textile business models compared to the other subsegment groups. However, some textile companies do upcycle as innovation projects on the side but not as their primary focus area, impacting the limitation in the research findings. For example, the H&M Group are working with upcycling projects, but fast fashion is still their primary area of focus (H&M Group, 2021). Therefore, we excluded H&M since it does not have a specific upcycling focus as other companies and marketing trends represent multiple studies. Two other companies were excluded because of Fast Fashion, which focused mainly on selling newly produced textiles, KappAhl and MQ (Saati, 2021, p.22-23). We excluded these two companies due to repeatedly being included in similar previous studies focusing on CSR questions. The underrepresented rental companies could have to do with an undeveloped trend that has not yet reached the Swedish market. The rental market is more extensive in countries such as Germany, England and the US. According to researchers, Svensk Handel rental is predicted to be the future way of consuming textiles (SVT Nyheter, 2019). 4.1.4 STEP 3 - SIMPLE RANDOM SELECTION & CONFIRMATION OF EXPLORATORY SELECTION In the third step, a selection was made based on companies acknowledged as contributing to sustainable development by Swedish Textile Initiatives, Fact Movement and The Swedish Textile Initiative for Climate Action STICA (Fact Movement, 2021; Sustainable Fashion Academy,2021). We, therefore, used Fact Movements and STICA sustainable lists, including companies experts believed were in the front of the sustainable textile industry in Sweden. The reason for using the lists was to get expert statements of relevant companies in the industry and exclude personal preferences as far as possible. We believe that the list was appropriate due to their specialist knowledge and intentions to compare companies and present companies that deserved to be acknowledged based on their sustainability focus. Fact Movement highlighted the following companies from our previous selection: Future Closets AB, Föreningen Erikshjälpen, second-hand Butiker), Stockholms Stadsmission, Houdini Sportswear AB. We also included the list of textile company members in STICA. 15
The exploratory selection ended up with 11 companies out of 15; that was the number of samples we wanted to reach to get a representable balanced group in the industry with 5 in each sub-segment. Consequently, we made a simple random selection where four more companies were included to get a random selection. Furthermore, this step was the most challenging part of the selection process due to limited advice where random selection helped exclude personal preferences. The last four companies chosen were Gemme Collective, Humana second-hand, Sellpy and Swedish Stockings. We believe that the simple random selection was a suitable complement to the exploratory selection. The companies in the second selection followed the contextual study variables and therefore qualified to be included in the study group. In other words, other companies from step 2 would have qualified as well if they were selected. 5 companies from each sub-segment do not give an exhaustive list of the segments, but it still contributes to understanding how these 15 companies communicate. Table 2: Companies analysed in the study. The numbers come from allabolag.se and LinkedIn 19/4-2021 (AllaBolag, 2021; LinkedIn, 2021). 4.1.5 CREDIBILITY & VALIDITY IN SAMPLE SELECTION The reason for including 15 companies was the time limit and keeping the study relevant to the concepts of qualitative research. We believe that the qualified companies are the most suitable for the study with the most relevant information since all companies followed the contextual variables. The companies are eligible to represent this study since they all apply to a narrow focus. Each group has similar possibilities to express their sustainable work since they all have been observed based on the same terms in the selection process. We believe that the selected companies can represent the sub-segments to some extent due to following the variables 16
mentioned and have a sustainable focus that can represent companies with similar traits in these sub-segments. Furthermore, even if these specific, evident traits do not apply to all companies in the sub- industries, it can be viewed as a part of the industry that highlights sustainability as an essential factor on their digital platforms. It can, to some extent, represent companies that fit into the company selection in the subgroups meaning that the results can be transferable. The selection process made it possible to draw legit conclusions without collecting data from all Swedish companies within these groups. We believe that it is crucial to have a limited selection that can represent that gap of knowledge rather than having a wide range of companies that cannot represent any specific area. Consequently, the upcoming results are trustworthy and have reliability since the entire process is described, including detailed information in the appendixes ongoingly. Kirk and Miller explain trustworthiness as a qualitative method where the researcher studies the objects and how they interact. The samples in the study will be analysed separately and within each sub-segment group (Kirk and Miller, 1986, p.70). It is important to note that the samples were chosen without regards to the firm's size, including employees and revenue. Therefore no conclusions will be drawn based on employees or revenue. 4.2 DATA The study uses sustainable focus as an indicator in the analysis process of businesses marketing transparency. Consistent with the definition in the literature, we identified sustainable transparency based on the matrix model with the four green market segments (Ginsberg and Bloom, 2004, p.81). The business websites were the primary data for analysing the sustainable values and focus of the companies. The sustainable documentation differs in the sample where some have published sustainability reports, certificates, agreements, set specific goals, while other samples have only communicated through the website. We used this information to complement the firm's websites to understand the company's sustainable information better. The reason for observing several document types was to give all companies a fair chance to express their sustainable work and see if they addressed it transparently. We also analysed if there were any transparent explanations as to why it is essential to focus on sustainability and showing the company challenges and opportunities to the public (Sveriges Kommunikatörer, 2021). Following Ginsberg and Bloom's theory of the green market segments helped us 17
investigate the transparency focus dimension. Following the model enabled us to collect independent information from the organisations in the analysis. This research cannot speak for the entire textile industry as a whole. Therefore, this study was based on three limited sub- industry groups with similar traits to make them as representable as possible for the thesis. All companies were studied with the same data methods. A problem with electronic communication is the possibility of rendering on websites, where companies can change the data on their digital platforms whenever the information is inconvenient or outdated (Matei, Russell and Bertino, 2015, p.261). In other words, what they claim to achieve and how that correlates in marketing based on what they have published. The data collection can be criticised due to the companies' variation of public documents; still, that is not crucial for the transparency evaluation since the data available in the data will be studied. It is imperative to ensure that the collected data is accurate, demand corrections, second opinions, and go back to previous data to correct it. A defence is that the data collection was made by two researchers separately and then combined to analyse the diversity and combine it with reliable data by using interpretivism. 4.3 QUALITATIVE METHODS The empirical analysis is concerned only with official sustainability communication through the organisation's websites and Instagram during a time frame between 2020-2021. We tested our expectations and investigated the research question using qualitative methods by studying companies' sustainable focus from the transparency perspective. The qualitative methods are suitable in the research due to unveiling explanatory variables for the influence of transparency by analysing the primary data texts and interpreting their meaning. A decision was made to use a qualitative research method instead of quantitative research due to the chosen topic transparency. A depth approach to the variables seemed more suitable than measuring and including numbers based on specific factors, which could have missed detailed information. The thesis uses a methodological triangulation based on two different qualitative methods, where the findings are compared, to study how the information correlates on various platforms. The study includes a document analysis and a content analysis. Jennifer Mason explains that it is good to use different methods to broaden the understanding (Mason, 2018, p.37). The Green Marketing Strategy Matrix differentiability on the greenness model is used to collect information about the companies transparency information in the document analysis. 18
The content analysis helps categorise how green the companies are (Ginsberg and Bloom, 2004, p.81-83). The methods are deductive since the theory strives to find tendencies by discussing the results with earlier studies, literature review and expectations in the conclusion. The preferences are based on scientific standpoints, and the writers have taken the role of an observer to study marketing expressions. The methods analyse the companies on the same terms meaning that the study analyses the same questions in each company. This study will not be able to be replicated in the future since the chosen samples, industry, digital platforms, documents, and the content will most likely be changed over time and the approach to transparent marketing. Therefore, the reliability is not consistent over time since the content will be challenging, and other researchers will process the information differently to some extent since the chosen methods are qualitative (Tracy, 2020, p. 266-267). The study has delimitations, such as the study does not represent how the businesses work practically. The thesis does not analyse the company's leadership. 4.3.1 DOCUMENT ANALYSIS Public documents can reveal information about how the observations communicate their values that give insight into how the values are presented and provide an understanding of the company's work (Tracy, 2020, p. 80). The document analysis is made through a coding document method where patterns in sustainability transparency are studied through the Atlas. ti software. The software is used as a codebook where paragraphs and words are highlighted based on the searched tendencies. We used the Google Chrome program Screenshotting - full page capture to save the websites as documents. The documents can be sent to the reader upon request, and the links are presented in Appendix (Appendix B: Datalinks). The screenshots and links demonstrate the text analysed in Atlas. ti to study all samples. The authors of the study believe that this method can result in a more profound knowledge of content analysis on Instagram. The combination of the two methods can result in a better understanding of transparency information, both from the document perspective that looks at the values and the content perspective that studies the offer using the value chain model. The outline of the coding method and the content method can be illustrated by looking at The Value Linking Chain that shows a structure for information development (Classon and Dahlström, 2006, p. 11). The coding used 19
is based on questions to give further knowledge about the company practices throughout the documentation. This data is then used when studying if the responsible statements found matches their actions on Instagram. The company's sustainable focus is looked upon using document analysis. The Value Linking Chain is used to analyse the document values that are then acknowledged in the content analysis, where the students evaluate the offer. Therefore, the study focuses on the assessing part of the value model and uses the values to receive an understanding of their transparency (Classon and Dahlström, 2006, p. 11). It can be supported as a feasible model since the information studied already exists, and the risk of failing to collect empirical material is small. The method is believed to be the most suitable to reveal information about companies transparency since the data already exists compared to, for example, interviews where the data is created during the process and can lead to limited insight over a shorter time period. Furthermore, there is also a chance that interviews would present a different result for the chosen topic of this study by struggling to create valuable data. This problem happened for Classon and Dahlström in their master thesis, where they only received responses from 8 of 15 companies (Classon and Dahlström, 2006, p.19). Atlas. ti can be criticised for not using all features available. The document analysis only focuses on the written content in the documents and excludes images, videos, music and other communication tools. This limitation can be defended by the limited time frame and the word count. There is a possibility that published documents were excluded from the study due to restrictions in the research period and the possibility of companies not making it easy for observers to find sustainability documents. A limitation was made not to study in-depth chemical or physical terms explaining the sustainable material. VARIABLES FOR MARKETING TRANSPARENCY Apart from limiting the study groups in the sample section, other variables helped set criteria for businesses' marketing transparency and sustainability to ensure that the group and indicators looked upon were based on the same terms. Therefore, the indicators were based on expert knowledge to make sure to exclude personal interest when possible. In this study, we refer to sustainable marketing as companies operating with social, economic and environmental approaches from strategy in documents to the actual realisation (Ottosson and Parment, 2015, p. 12). Sustainable development is often discussed from three dimensions: social, 20
environmental and economic. Henderson and Sjölander highlight that companies must focus on the following areas to operate sustainably: structure clear goals, measure process and welcome third opinions to evaluate their sustainable focus (Henderson and Sjölander, 2002, p.11,47). Sustainable marketing demands clarity. Otherwise, there is a risk of misleading customers if the customers do not understand what the company is relating to. Therefore, companies need to prove and strengthen their standpoints that they use in marketing to be verified by the observer (Konsumentverket, 2020b). The observation studied risks and opportunities in their sustainable focus and if experts supported the sustainable progress and focus or if the statements clearly were based on personal experiences without information supporting the claims (Matei, Russell and Bertino, 2015, p.259-260). According to the Fashion Transparency Index, listed contact information to the company, sustainable support/team, supply, and manufacturers show significant transparency. Therefore, this was included in the study as a variable (Fashion Revolution, 2018). Green Marketing can increase goodwill and improve media relations and company image and brand, which can mislead customers by not expressing sustainable statements clearly (Gordon, Carrigan and Hastings. 2011, p. 147-149). The sustainable policy was included as a variable since it adds to the subject. Transparency policy documents can, for example, provide missing details in companies' work that customers need to understand their process (Harvard Kennedy School, n.d.). A company can present their economic boundaries and their impact on their sustainable work to explain how they take responsibility and work externally with sustainable issues (Lujan Salazar and Guzman, 2017, p.126). The researchers also chose to look for certifications within the company. Eco-labels are an example of a vital tool to help imply high environmental requirements produced by an independent third party (Naturskyddsföreningen, 2021a). To support statements made by the companies in their communication, sustainable agreements and corporations can help set standards for a firm and environmental impact; therefore, this perspective was looked upon (Government Digital Service, 2021). Based on the factors presented, we conducted the document analysis based on 16 search words as the variables given below where we commented if the marketing included transparent information: 21
1. Agreement/ Corporation 2. Certificates 3. Challenges 4. Contact Info 5. Contact Info - Sustainability questions 6. Economical boundaries for sustainable change 7. Expert Knowledge 8. Goals 9. Green Marketing tendencies 10. Inconsistent sustainable promise 11. Measurable, sustainable actions 12. Opportunities 13. Suppliers & Manufacturers listed - contact info 14. Sustainable focus 15. Sustainable policies 16. Transparency 4.3.2 CONTENT ANALYSIS A content analysis was chosen to complement the document analysis and was pursued to draw upon further information about marketing on different digital platforms to clarify if the companies were consistent in their marketing. The content analysis was conducted after the document analysis. Content analysis is a method that is often used in triangulation to encourage consistency and research if the coding data is similar to the content data (Tracy, 2020, p. 276). Content analysis can inform or persuade audiences about a social issue, policy position, product or service. Content analysis is commonly used in marketing, journalism, communication, studies of literature and many other disciplines and professions (Drisko and Maschi, 2016, p.27). Content analysis has applied to the companies Instagram posts between the year 2020 and 2021. There are limitations to what can be said when doing content analysis on Instagram. Also, posts usually only include an image and possibly a short associated text. The writers find that content analysis is suitable to capture the typical themes or concepts in the company's transparency marketing on social media. Content analysis is also favourable when analysing data over time. Instagram is a modern digital platform for sharing images in a social network and has 1074,3 million users by 2020 (Statista, 2021). 22
According to a study made in 2020 by the Swedish Internet Foundation, 50% of the Swedish public 16+ visit Instagram at least once a day. The report also included facts about how the pandemic has impacted the increase of using the digital platform Instagram for all age groups (Internetstiftelsen, 2020, p.104). Therefore, the thesis writers believe that it was accurate to do a content analysis on the social media platform Instagram. Kirk and Miller mean that there is no such thing as perfect validation since it is based on field research (Kirk and Miller, 1986, p.70). The content analysis only discusses findings from the document analysis and the literature in the thesis. It is crucial to note that only one Instagram post is analysed, and therefore the method is not representable for the company's entire Instagram account. A critical acknowledgement is that the reliability and validity, therefore, is limited in this method. Still, the benefit of using this second method was to investigate if the Green Marketing Strategy Matrix tendencies were similar on another digital platform. Therefore, the method is used as a spot-check for checking if the communication from the document analysis is similar on Instagram. The content analyzes the posts by comparing the statements made in the text with the Green Marketing Strategy Matrix (Ginsberg and Bloom, 2004). VARIABLES FOR CONTENT ANALYSIS The posts were chosen with only two selections. The posts include texts and do not only represent communication through an image without associated description. In other words, the data is studied in the caption alternatively associated post description and not the pictures themselves. The second selection was the publication date between 2020-2021. The content analysis is analysed based on the four variables examined and relating it to the Green Marketing Strategy Matrix. The perspectives looked upon are related to Ottosson and Parment sustainable marketing strategies and are summarised in four variables to see how the sustainable marketing on Instagram is correlated to the documents studied and if that can bring additional knowledge to the subject. The variables looked upon are: 1. Sustainable marketing informs customers about how their work drives sustainable lifestyle choices and habits. 2. How sustainable products are better than non-sustainable products in communication 3. Communicate company offer. 4. Explaining the positive effects of consuming sustainable products. (Ottosson and Parment, 2015, p. 114). 23
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