Sustainability is not a new concept by any means, and many enterprises have been working towards sustainability for years now. However, what has changed in recent years is the sheer volume of consumers striving to shop sustainably and make ethical and co-conscious purchasing decisions. This is significantly impacting how and what people purchase as they are starting to stretch their wallets to put the planet first.
The Rise of Eco-Conscious Consumers
Sustainability is an increasingly important consideration for today's shoppers.
At the root of sustainability lies the idea that consumers should look beyond marginal cost when making purchases and consider how their choices are likely to impact the environment and society. This shift in mindset is affecting both individual choices and market trends as businesses are exploring new approaches to adapt their marketing strategies and better resonate with sustainability-conscious consumers.
Read more: Measuring the ROI of Sustainability to Drive Profitability and Purpose
Thanks to growing awareness of environmental issues like climate change and social concerns, including labor rights and human rights abuses, customers see sustainability as a critical component of conscious consumption. In the UK, it is estimated that eco-conscious consumers already account for one in every five pounds spent on fast-moving consumer goods (FMCG). This sizeable share of the market is further projected to grow. This growth is more significant as it is happening with the economic challenges faced by consumers, illustrating how important protecting the environment is for today's consumers. Furthermore, environmentalists are cautioning brands about eco-conscious consumers and their ching shopping behavior. Older shoppers are known to spend, on average, more on sustainable goods than their younger counterparts. However, this does not imply that younger generations are not engaged in preventing climate change.
For brands to remain competitive in the marketplace, they need to proactively promote sustainability in their branding and marketing efforts. This involves sourcing sustainable materials, investing in renewable energy sources, and partnering with charitable causes.
Learning to Read Between the Green Labels
Today, greenwashing is everywhere. Greenwashing is when a brand makes misleading or false claims to deceive their customers into thinking they are buying a natural (clean) or environmentally friendly product when they're not. Such practice misleads consumers into accepting that they are making environmentally responsible choices by supporting products or brands that are likely to have a negative impact on the planet. It is, therefore, important to be aware of and avoid greenwashing by actively seeking out credible third-party certifications or evidence to check the companies' environmental claims.
This has led to shoppers turning towards environmentally friendly products, giving rise to eco-conscious consumers by:
Read more: The Importance of Sustainable Data Centers in the Age of AI
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Reducing Consumption
Before purchasing a product or service, consider whether you should buy it, especially if it is expensive. Here's a process you can follow when making a significant purchase.
Questions to Ask Before Making a Purchase:
- Do I already have something that can do the job?
- Can I borrow it from someone?
- Can I make it myself?
- Can I delay this purchase?
- Have I looked for lower-cost alternative solutions?
- Have I looked at thrift stores or discount shops for it?
- Have I looked online for discounts for it?
Following this list will enable you to save money and decrease clutter in your home.
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Making a Savvy Purchase
When making a purchase, increase your chances of getting a great product by:
- Check online reviews as they help measure the product and brand reliability. Reviews act as consumer advocates.
- Explore company ratings on different platforms.
- Ask your friends and family about their personal experiences with the product or service before making a purchase.
Read more: Digital Transformation is Navigating Sustainable Business Growth. How?
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Shopping Carefully
Once you know which brands or products are most reliable, shop carefully. Search for recommended products to see sample prices at stores. If these prices do not appeal to you, you can check other platforms that offer good deals for the products you are looking for. Although getting an unbiased product review is an effective first step, it does not eliminate the possibility of getting a faulty product as well.
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Be Wary of Green Imagery
Green imagery and fancy flora on packaging do not imply that a product is green, so do not get swayed by packaging. For brands, their marketing goal is to be perceived as natural, but the product inside may be far from it.
Consider the bigger picture and understand the entire product lifecycle. A brand that produces one environmentally friendly product is still likely to have a huge carbon footprint due to its other products or production practices. Consider the entire product's lifecycle, including sourcing, manufacturing, packaging, service, and disposal. If a brand projects its product to be planet-friendly, these factors need to be addressed. Look for evidence supporting their clever packaging and delve deeper into their business practices and credentials.
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Understand Consumer Rights
Be a savvy consumer. With innovative advertising campaigns, brands bombard their audience with advertisements designed to make them believe in their products and create a curiosity to make a purchase. There is a lot of science behind advertising to encourage the consumer and stretch a product's advantages. If the customer ends up making a purchase that does not live up to its hype, that is deemed as false advertising. Documenting this is a way to resolve this issue.
As a savvy consumer,
- Learn to understand the product warranty.
- Read vendor contracts before you sign them.
- If you are financing your purchase, do not do that from the vendor, as you are much more likely to get a better rate from a credit union.
Read more: Exploring ESG Investment Options: Ways Your Business Portfolio Can Save the Planet
Final Thought
The landscape of sustainable consumption is evolving at a rapid pace.
Consumers are increasingly shifting to brands that embrace purpose and sustainability. Businesses with sustainability claims are witnessing twice as much growth as their traditional counterparts. Yet a frustrating contradiction remains at the heart of green business. In short, for businesses to survive and thrive in the rapidly changing marketplace, sustainability must be at the forefront of their strategy. As more shoppers prioritize sustainability, brands need to offer sustainable options to be perceived as ever more relevant.
To connect consumers with sustainable practices, brand managers need to identify and understand what clicks for people. Tapping into the power of shopper psychology can further enable them to create messaging and strategies that resonate with their customers, thus encouraging them to make more sustainable choices.
And as consumers, if something seems too good to be true or raises your suspicions, make sure to cross-verify. Avoid greenwashing by using critical thinking to properly assess sustainability claims. Learn to hold companies accountable for their sustainability claims and support eco-conscious brands making a positive impact.
By being vigilant and questioning claims, you can become an eco-conscious consumer and start to spot greenwashing more effectively.
A leader in ESG Services, SG Analytics offers bespoke sustainability consulting services and research support for informed decision-making. Contact us today if you are searching for an efficient ESG (Environmental, Social, and Governance) integration and management solution provider to boost your sustainable performance.
About SG Analytics
SG Analytics (SGA) is an industry-leading global data solutions firm providing data-centric research and contextual analytics services to its clients, including Fortune 500 companies, across BFSI, Technology, Media & Entertainment, and Healthcare sectors. Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company with a team of over 1200 employees and a presence across the U.S.A., the UK, Switzerland, Poland, and India.
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