I have received an email from our customer insight team pointing out that Mintel has just released an insightful report showing that, as expected, the recession has taken a bite out of ethical and green shopping.
The study shows that one in five say that they are not in a financial position to think about environmental or ethical issues. Consumers also said they are less inclined to pay a premium for more responsibly-sourced goods.
We keep a close eye on information about green consumerism as we have a commitment to be a leader on sustainability in the media sector, not only in our editorial coverage but also in our commercial activities.
In fact, our sustainability vision specifically states that "we will work with our readers and users to gain a deeper understanding of what products and services they want in this area, and use this knowledge to engage with our advertisers and sponsors on the issue of sustainability."
We carried out a major piece of research on ethical consumerism last year called Greenlight, so the Mintel report gives us some very useful up-to-date information.
While people are keeping an eagle eye on their wallets, the report shows that on a broader scale, greener living is part of almost everyone's lifestyle with 97% of adults having adopted at least one sustainable attribute in their behaviour. In addition, take-up of virtually all the greener behaviours is greater than it was 12 months ago.
Even before the recession, price premiums were a barrier to a more widespread take-up of green and ethical products and the reports shows that 12% of adults stated that they could no longer afford to pay extra for green or ethical products
Other consumer opinions tested by Mintel in the July 2009 survey show:
49% stated clothing retailers should make it clear whether garments have
been produced to a high ethical standard.
45% stated the big retailers are motivated by profits and only take action
if there is a cost saving.
39% said they would consider boycotting a brand or retailer if they source goods made under conditions of hardship for workers.
27% said they would consider boycotting a brand or retailer if they do not reduce their impact on the environment.
20% said they are trying to save on food bills but are still buying organic foods.
19% said hey are not in a financial position to think about ethical or environmental issues.
12% said they have cut back on spending on organic foods due to the recession.
The report makes clear that advertisers need to give shoppers more reasons to buy 'green.' While there is no lessening of public concern about environmental and ethical issues, people will no longer pay price premiums for products unless they deliver more than simply a reduced environmental impact or are more ethical. The burden of proof is therefore on manufacturers to demonstrate products are worth paying more for.
Far greater emphasis has to be placed on the specific benefits that products deliver, such as lower toxicity and even then being green may not be enough – added value attributes, especially those focusing on superior taste or saving money, are now needed to win share of spend.
Scepticism about retailer motivation remains high and there is a need to make information provision more meaningful to avoid the accusation of 'greenwash.'
The report shows that "environmentally friendly" and "green" are ambiguous claims and there is no place for unexplained tags relating to environmental impact. Advertisers need to be more specific in their communications to the consumer.
