Consumers are confused, but spending
Submitted by Shannon on Thu, 01/29/2009 - 22:58.
Good news for makers of eco-friendly products: tough economic times may not destroy consumer spending for green products. In a new study, Capturing the Green Advantage for Consumer Companies, BCG's results from 9,000 surveys showed that more consumers systematically purchased green products in 2008 than in 2007. Considering the roller coaster ride the economy took over the past year, it is impressive - and telling - that consumers are still budgeting for green.
Consumers increasingly value both the direct and indirect benefits of green products. For example, sustainably-produced food products usually offer superior freshness and taste and increased health and safety. Indirectly, these items are produced according to strict guidelines that qualify them as organic, fair trade, or environmentally-friendly. Consumers hold companies to high standards of sustainability - and often vote with their wallet for the companies they deem most sustainable.
To attract more green shoppers, the study found, companies need to improve consumer awareness of green products and distinguish themselves from the panoply of choices. 73% of conscious consumers consider it important or very important that companies have a good environmental track record and count on companies to pave the way with their CSR initiatives, while only 46% of respondents agree that the actions of individuals can have meaningful environmental impact.
Green products companies must act wisely to improve consumer confidence in a time of serious economic belt-tightening. BCG suggests that companies employ their 'Four Ps of Green Advantage': Planning, Processes, Products, and Promotion. With careful evaluation of green initiatives, companies can both meet customers' demands for greener operations and offerings, as well as satisfy their own business requirements.
Consumers increasingly value both the direct and indirect benefits of green products. For example, sustainably-produced food products usually offer superior freshness and taste and increased health and safety. Indirectly, these items are produced according to strict guidelines that qualify them as organic, fair trade, or environmentally-friendly. Consumers hold companies to high standards of sustainability - and often vote with their wallet for the companies they deem most sustainable.
To attract more green shoppers, the study found, companies need to improve consumer awareness of green products and distinguish themselves from the panoply of choices. 73% of conscious consumers consider it important or very important that companies have a good environmental track record and count on companies to pave the way with their CSR initiatives, while only 46% of respondents agree that the actions of individuals can have meaningful environmental impact.
Green products companies must act wisely to improve consumer confidence in a time of serious economic belt-tightening. BCG suggests that companies employ their 'Four Ps of Green Advantage': Planning, Processes, Products, and Promotion. With careful evaluation of green initiatives, companies can both meet customers' demands for greener operations and offerings, as well as satisfy their own business requirements.
