Why is green consumption easier said than done?
According to Bain & Company's "Insights on Sustainable Consumption Trends in Asia-Pacific," 90% of consumers express a willingness to pay more for sustainable products. However, in reality, only a small fraction follow through. This discrepancy raises the question: is sustainable consumption truly easier said than done?
In partnership with the Shanghai Consumer Foundation and Youth newspaper, L'Oréal unveiled the "New Ways to Spend: 2024 Insights into Gen Z's Sustainable Consumption Trends" report. This comprehensive study aims to uncover emerging paradigms in sustainable consumption that are inclusive and accessible, shedding light on the evolving attitudes and inspirations of today's youth towards sustainability. Let's diving into the challenges of sustainable consumption for young Chinese consumers:
The Fog of Sustainability
Terms like "eco-friendly," "natural," "green materials," and "recyclable" are often used interchangeably, leading to considerable confusion among consumers. A significant 53% of Chinese consumers report that there is insufficient information available about sustainable products or services. Additionally, 42% of Chinese consumers desire better labeling and clearer identification of sustainable attributes from suppliers. This lack of transparency makes it challenging for consumers to make informed decisions.
Imagine a consumer faced with multiple products labeled "eco-friendly" without any clear explanation of what makes each product sustainable. Is it the packaging, the materials, or the production process? Without detailed information, making a choice becomes unnecessarily difficult. To complicate matters further, companies often engage in greenwashing—using misleading terms to capitalize on the growing demand from socially responsible consumers while masking their environmentally harmful practices.
Cost-Effectiveness: Balancing Sustainability with Quality of Life
While sustainable products are available, they often come at a premium price, posing a significant barrier for many consumers. In fact, 53% of Chinese consumers find sustainable products or services too expensive. Generation Z, in particular, values product quality, design, and functionality and is willing to pay for products that align with their values, according to the 2023 China Consumer Market Green Low-Carbon Sustainable Trend Survey. However, the higher cost of sustainable options can still deter many from making eco-friendly choices, especially when budget constraints are a concern.
Trust Issues: Ensuring Authenticity and Engagement
The market for sustainable products is characterized by varying quality levels and a significant lack of channels for interaction between brands and consumers. Over 70% of consumers state that they would be more likely to purchase from a brand if it clearly explained the environmental or social benefits of its products or services.
Additionally, 83% of respondents express a desire for more engagement and interaction regarding green and low-carbon products. This lack of transparency and communication can lead to skepticism and hesitancy, as consumers struggle to distinguish genuinely sustainable brands from those merely engaging in greenwashing. Brands need to build trust through clear, honest communication and active engagement with their consumers.
Convenience Challenges: Simplifying Sustainable Practices
Sustainable products and services should ideally make life easier, not more complicated. However, 34% of Chinese consumers feel that the process of adopting sustainable practices is too complex. Furthermore, 61% of Chinese consumers hope that suppliers will offer after-sales services, such as repairs, to help them maintain a sustainable lifestyle.
For instance, recycling glass bottles is an excellent initiative, but for consumers who don't live near recycling facilities, it becomes highly inconvenient. This inconvenience can deter even the most environmentally conscious individuals from participating in sustainable practices. Brands need to address these practical barriers and offer solutions that integrate seamlessly into consumers' daily routines, making sustainability an effortless part of their daily lives.
How Brands Can Lead the Way in Sustainable Consumption
To effectively champion sustainable consumption, brands must embed sustainability into their core values and operations, ensuring alignment with eco-friendly principles across all aspects of their business. For example, Patagonia is renowned for its commitment to environmental sustainability, integrating eco-friendly practices in product development, manufacturing, and corporate policies.
Additionally, sustainability should be made appealing and convenient for consumers, transforming eco-friendly choices into effortless and enjoyable habits. IKEA exemplifies this approach by offering a range of affordable, stylish, and sustainable products, along with user-friendly recycling and repurposing guides.Clear communication and genuine actions are essential for building consumer trust. Brands must provide transparent information about their sustainable practices and ensure their actions match their claims. The Body Shop, for instance, openly shares the origins of its ingredients and its ethical practices, fostering trust through honest storytelling. Moreover, fostering co-creation and open innovation with consumers and other stakeholders can drive sustainable solutions and create shared value. Unilever's Sustainable Living Plan highlights this collaborative approach, involving partnerships with NGOs, suppliers, and consumers to promote sustainable innovation. By adopting these strategies, brands can lead the way in making sustainable consumption a practical and desirable choice for all.
