Will Green Initiatives Win Back Price-Sensitive Shoppers?
Ah, the green/environmental trend. Some of you are probably sick and tired of constantly hearing about it, but it's still of great importance to us both as individuals and as people working at retail companies (or retail-related companies.)
For example, Nielsen recently did a survey (covered in MediaPost and in Progressive Grocer) which showed that more than half of U.S. consumers would give up all forms of packaging provided for convenience purposes if it would benefit the environment. In fact, only one in 10 U.S. consumers is not prepared to give up any aspect of packaging for the benefit of the environment. Also, nearly 80% make a point of combining shopping trips to save gas most, if not all of the time, and 60% make an effort to buy fruits and vegetables at a local farmers’ market.
These numbers are confirmed by a Mintel survey (also covered by Progressive Grocer) which found that Americans are quickly moving to the greener end of the spectrum. 36% of adults claim to "regularly" buy green products (up from only 12% just 16 months ago!) while the number of people who say they "never" purchase green products has been cut in half over the same time period (from 20% to 10%). There is, of course, a generational divide here - over half of 18-24 year olds "regularly" purchase green products vs only 31-36% of older adults.
Would you have believed these stats 5 years ago? Me neither...
Going forward - how can these trends help retailers?
According to this MediaPost article, there's been a sudden escalation in the number of green (and otherwise ethical) announcements from retailers (green stores, biodiesel trucks, animal-rights, environmentally-friendly suppliers and much more.) Besides giving consumers what they want and addressing a competitive necessity (although greener practices are becoming the norm, rather than the exception), retailers can use the trend to "build a little extra trust or to deflect attention from all those depressing "sales are down" headlines."
The trend also may be based on the need to counterbalance rising energy costs - retailers need to "show consumers ways that they are trying to reduce their carbon footprint, in their own operations. And then sell products that help consumers do the same." Retailers are also reacting to the fact that "consumers in general are looking to engage with companies based on a core set of shared values" by looking at a range of issues such as fair-trade practices, health concerns, labor, environmentalism, and even concern about animals.
Some of these trends are also discussed in a recent FMI report as they relate to the grocery industry (covered in Progressive Grocer). For example, 34% of respondents to the survey said they are "pursuing sustainability initiatives related to new buildings or remodels" and 40% plan to do so in the next five years. Grocers are also increasingly hiring energy management personnel to help them reduce energy costs in store operations, transportation, and warehousing.
For example, Nielsen recently did a survey (covered in MediaPost and in Progressive Grocer) which showed that more than half of U.S. consumers would give up all forms of packaging provided for convenience purposes if it would benefit the environment. In fact, only one in 10 U.S. consumers is not prepared to give up any aspect of packaging for the benefit of the environment. Also, nearly 80% make a point of combining shopping trips to save gas most, if not all of the time, and 60% make an effort to buy fruits and vegetables at a local farmers’ market.
These numbers are confirmed by a Mintel survey (also covered by Progressive Grocer) which found that Americans are quickly moving to the greener end of the spectrum. 36% of adults claim to "regularly" buy green products (up from only 12% just 16 months ago!) while the number of people who say they "never" purchase green products has been cut in half over the same time period (from 20% to 10%). There is, of course, a generational divide here - over half of 18-24 year olds "regularly" purchase green products vs only 31-36% of older adults.
Would you have believed these stats 5 years ago? Me neither...
Going forward - how can these trends help retailers?
According to this MediaPost article, there's been a sudden escalation in the number of green (and otherwise ethical) announcements from retailers (green stores, biodiesel trucks, animal-rights, environmentally-friendly suppliers and much more.) Besides giving consumers what they want and addressing a competitive necessity (although greener practices are becoming the norm, rather than the exception), retailers can use the trend to "build a little extra trust or to deflect attention from all those depressing "sales are down" headlines."
The trend also may be based on the need to counterbalance rising energy costs - retailers need to "show consumers ways that they are trying to reduce their carbon footprint, in their own operations. And then sell products that help consumers do the same." Retailers are also reacting to the fact that "consumers in general are looking to engage with companies based on a core set of shared values" by looking at a range of issues such as fair-trade practices, health concerns, labor, environmentalism, and even concern about animals.
Some of these trends are also discussed in a recent FMI report as they relate to the grocery industry (covered in Progressive Grocer). For example, 34% of respondents to the survey said they are "pursuing sustainability initiatives related to new buildings or remodels" and 40% plan to do so in the next five years. Grocers are also increasingly hiring energy management personnel to help them reduce energy costs in store operations, transportation, and warehousing.
On the practical side, Entrepreneur magazine offers some ideas on how to "turn green marketing into gold". How do you counter the fact that according to a recent survey "7 in 10 Americans either strongly
or somewhat agree that companies call their products green simply as
a marketing tactic." The answer - work on motivating green shoppers, showing them the money, promoting safety and good health and make convenience a plus.
But be careful - another recent Nielsen survey (covered in Advertising Age) showed that you can't fake going green. "Bloggers are quick to condemn 'greenwashing' when they suspect companies misrepresent their environmental impact with aggressive PR campaigns -- as spurious attempts to be 'green'." Instead brands should aim for transparency and consistency - "corporations can't do everything in one feel swoop, but need to be authentic and transparent about the steps they are taking."
Posted by Universal Ad
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