It is not about profit or purpose but profiting by fulfilling brand’s purpose: Sanjiv Mehta

Mumbai: Amidst the challenges of a global financial crisis, widespread pandemic effects, high inflation, rising interest rates, wars, and rapid AI adoption, this year has been remarkably unpredictable. 

New work and business models have emerged, with social media becoming pivotal in engaging consumers. Advocacy for environmental, social, and diversity issues has gained momentum, drawing more attention to disasters and political matters.

Adaptability in turbulent times

At Goafest 2024, Sanjiv Mehta, Executive Chairman of L. Catterton India, described the current era as a ‘bunny world,’ highlighting the rise in financialisation, income inequality, technological disruption, and geopolitical uncertainty as factors ending the ‘era of great moderation.’ 

Talking at the session themed, 'Leading with vision, flexibility and purpose,' he said, “Brands that seize opportunities in the changing world will be able to offer products and services that are simultaneously better, cheaper and getting into the future more sustainable.”

Key concepts of adaptability

Mehta outlined five key concepts of adaptability:

1. Flexibility: Reacting and adapting to changing circumstances.
2. Agility: Proactively anticipating change and responding quickly, which requires spare capacity. “Agility demands spare capacity and the ability to redirect talent towards value creation,” he mentioned. 
3. Innovation: Fostering a culture that values creativity and allows for mistakes, enabling recovery from setbacks.
4. Resilience: Developing the capacity to withstand and adapt to disruptions.
5. Orientation to learning: Encouraging continuous learning to adapt to changing conditions.

Mehta emphasised the importance of directing talent towards value creation and dynamically moving top talent to where opportunities are greatest.

Evolution of purpose

Mehta discussed the evolution of business purpose from merely generating shareholder wealth to encompassing broader roles such as ethics, social impact, and environmental responsibility. 

He argued that adaptive businesses can profit through their purpose without compromising either. “It is not either profit or purpose but more about profiting by fulfilling your brand’s purpose,” said Mehta.

Examples of purpose-driven brands

Mehta also highlighted the importance of innovation through several examples, noting that no business follows a linear trajectory. Mehta cited Unilever, Danone, Tata, and Dr Reddy’s Laboratories as examples of brands integrating purpose into their operations. Defining a brand’s purpose helps in measuring past achievements and enhances the ability to envision and execute future initiatives aligned with that purpose.

Leaders in the adaptive era

Mehta believes that leaders must rethink assumptions about constancy, build adaptive capacity, establish robust adaptive processes, and ensure resilience. Collaboration, both within the organisation and across business and societal sectors, is essential. Leaders should create ecosystems to become effective organisers.

Focussing on the value of team over individuals, he emphasised, “The concept of a great leader is a myth; it is always the work of a great team.”

Advertising in the adaptive era

According to Mehta, to become adaptive, the advertising world should:

• Adopt AI and machine learning.
• Trust data instincts and use predictive analytics to determine future trends and optimise spending.
• Use technology to understand consumer preferences and create personalised advertisements.
• Focus on storytelling to connect with audiences emotionally and align brand messaging with social causes and sustainability.

Trust and ethical adherence

Mehta concluded by emphasising the need for brands to maintain trust, transparency, and ethical advertising standards. Brands should invest in talent, skills, collaborations, and partnerships, including data analytics and cross-industry collaborations, to stay accountable and effective in their advertising efforts.