Water Scarcity: Day Zero – Psychologies of Abundance, Compromise & Crisis

Introduction

Scope

Water Scarcity Psychologies

Key findings

A psychology of water: abundance – example UK

Even water-abundant markets will feel the global water scarcity

A UK example: importing avocados from a water-scarce region

A psychology of water: compromise – example US

Water scarcity changes purchasing priorities if felt long enough

A psychology of water: crisis – example Cape Town, South Africa

Entering the mindset of a water crisis has effects beyond the crisis

Transition periods between these psychological states are valuable

Government, Brands and Consumers

The case study is Cape Town, but the principles apply globally

Three states of water psychology are felt at three levels of society

Government, Brands and Consumers: Government

What governments do during compromise and crisis transitions

Elections and political careers are made or broken in a crisis

Local government tends to do better than national…but that said…

Finger pointing is the order of the day

Government, Brands and Consumers: Brands

What brands do during compromise and crisis transitions

Brands can be slow to spot profit and differentiation possibilities

Brand and retailer duties in a water crisis

A case of too little, too late (or 1000 cases, stuck in the warehouse)

Government, Brands and Consumers: Consumers

What consumers do during compromise and crisis transitions

Consumers will resist the change longest and loudest

When something is seen as a “right”, taking it away is seen as evil

Say “No” (and wish really hard for the issue to just go away)

A Case Study: Cape Town

This is a place of contrasts, in terms of wealth and resources…

…and those lacking such wealth and resources

Rich or poor…all faced a sudden and inescapable challenge

It is a shock at first to feel an immovable and unpleasant reality

“Day Zero” was a very ambitious (and successful) crisis response

Consumers did start to adapt, including some emotional sacrifices

Grey water and the repeating connection to laundry

“Day Zero” is a story of the transition from abundance to crisis

Denial is not limited to consumers; avoidance is a management trait

This began as a small issue with small restrictions, and snowballed

Shame can be a very powerful tool in mass behaviour modification

Social media is a platform that can be used as a shaming weapon

A normally abhorrent level of scrutiny and personal data sharing

What is acceptable in mortal situations becomes morally malleable

As a crisis ends (heading to compromise), business starts to shout

During a rationing period, any perceived resource bias is attacked

This story of crisis ended (for now at least) in rainfall and relief

A rising obsession with rainy season and precipitation statistics

Infractions deliberately face over-reactions (examples being made)

After a crisis: can you ever go back to a mindset of abundance?

A crisis forges irrevocable changes in behavioural group “norms”

National investment in water infrastructure is not forthcoming

The national investment plan hinges on extra monies from industry

A decline of trust in South Africa offers brands the space to lead

Key Opportunities

How water typically gets used in South Africa’s homes (versus UK)

“Water saving” is soft theory; living with a strict 50 litres limit is hard

Brand action could be blocked by a fear of “exploitation” labels

Specific water crisis products have been in demand

The relevance to home care, personal care and appliances

Brand leaders in the most relevant home/personal care categories

Brand leaders in the most relevant consumer appliance categories

Ownership of major domestic appliances is high in Cape Town

This is a strategically interesting data point for auto-detergents

Consumers start seeking credible water-saving advice

Local government and the blogosphere

Peer-to-peer advice filled in gaps where brands were absent

Key Opportunities: Laundry and Dishwashing

This is an example of crisis in a social media and misinformation age

Laundry care and dish care advice given by bloggers and forums

Where were the brands during the Day Zero efforts and peak?

Additive brand messages SA 2018: Unilever Group

Additive brand messages SA 2018: sunlight’s water-saving labels

Additive brand messages SA 2018: Procter & Gamble

Additive brand messages SA 2018: Reckitt Benckiser Group

Additive brand messages SA 2018: Colgate-Palmolive Co

Appliance brand messages SA 2018: Arçelik AS

The Defy “Every Drop Counts” campaign did get TV coverage

Appliance brand messages SA 2018: LG Corp

Appliance brand messages SA 2018: Samsung Corp

Appliance brand messages SA 2018: BSH Hausgeräte GmbH

Appliance brand messages SA 2018: Bosch on dishwashers

Key Opportunities: Toilet and Surface Care

Sannitree cornered the market for toilet care in Cape Town

Unilever’s water-saving labels crossed into toilet/surface care

Conclusions

The importance of having low water strategies cannot be over-stated

How many more crises are needed to see the pattern?

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