The Boston Consulting Group report highlights that while around 80% of consumers consider sustainability in their daily purchases, only 1% to 7% pay the premium price for it
Sustainability initiatives are gaining momentum worldwide, with consumers leading the charge towards a more environmentally conscious and responsible future. While the notion of sustainable practices has been in existence for a long time, it garnered extensive attention in the past decade. It emerged as a global movement after the United Nations outlined the 17 Sustainable Development Goals (SDGs) with clear objectives to achieve sustainable development by 2030. This compelled the world to evolve, placing sustainability at its core. The progress of this transformation can be assessed through the shifting consumer pattern. Sustainability has now become a part of their lifestyle, moulding them within.
Whether it is purchasing a garment or everyday grocery items, today’s consumers are much more informed, mindful and cautious. Consumer trends in 2020 as compiled by Deloitte, suggest that conscious consumers are embracing a slew of diverse measures to shop and live more sustainably. Their foremost action to support the cause is reducing single-use plastics. This is followed by shopping from environmentally sustainable brands, and minimizing spending on new items.
The behavioural change has been prompted by a multitude of reasons. Among them are heightened environmental awareness, rising concerns about climate change, existing social inequality, increased focus on personal health, and social influence. Of all the people morphing their purchasing patterns, 80% embark on the journey to sustainable living to make a difference in saving the planet for future generations. This data was cited in the Capgemini Research Institute report regarding consumer products and retail (CPR). The same report suggests that 77% of people do it because of concerns about fair workforce treatment, and 76% do so regarding issues such as poverty and hunger.
With shifting consumer preferences, businesses are also cultivating sustainable practices on a broader scale. Sustainable development has always been on the brand agenda as part of their corporate social responsibility (CSR). The changing consumer mindset and regulatory modifications accelerate the process of implementing it across the operation. As a result, more sustainable products and services have been made available to consumers in the market, providing them with more choices.
This strategy helped businesses to affirm their commitment to the cause and stay competitive in the market. The textile industry has also been working vigorously in this direction. Digitalizing operations, procuring raw materials from responsible sources, and switching to solar power are some of the efforts made to reduce their overall carbon footprint. A key issue within the textile sector revolves around the volume of waste produced. To minimize this, the industry is focusing on green chemistry and promoting recycling.
Consumers are indeed taking great interest in building a greener tomorrow, but there are still some areas that need more attention if we intend to meet the SDGs goals on time. A decade has already passed and there is much ground to cover. There is indeed awareness of responsible development; however, there is a significant “say-do” gap.
Owing to the intricate nature of sustainable development, consumers often remain unaware of the environmental consequences of their actions. Nonetheless, the Capgemini Research Institute report indicates that once individuals become aware of the true sustainability impact, they appear more determined to change their behaviour.
Affordability is another concern that prevents people from switching to sustainable options. The Boston Consulting Group report highlights that while around 80% of consumers consider sustainability in their daily purchases, only 1% to 7% pay the premium price for it. Additionally, the lack of transparency by brands also deters consumers from making the change.
Much work is needed to overcome these issues and promote sustainability among consumers. This should begin by effectively raising awareness, highlighting the impact of their daily activities on the environment, and suggesting ways to minimize it. Along with this, it is crucial to manage the pricing of products and services. This would encourage more consumers to contribute to a better tomorrow. Sustainable products and services need not be expensive. Most importantly, promoting transparency and accountability can help build trust among the audience and prevent greenwashing.
In this global endeavour to build a sustainable world, every individual plays a pivotal role. For businesses to expedite the changes in their operations, there must be increased demand among consumers. They serve as the driving force behind this transformation, shaping the direction of change through their choices and preferences.
(This article is authored by Indu Mehta, President – Corporate Communications & CMD’s office, LNJ Bhilwara Group)
