Thursday, November 23, 2006

THE 'IN' CROWD
Understanding consumer attitudes is key to illuminating the business case for addressing environmental impact. This is the only "sustainable" means of engaging your average business in change.

In developing the ShoppingFix concept I've done a fair bit of nerd-work on consumer behaviour. Recently our Trust has been doing some work for the Sustainability Trust - looking at the Wellie hospitality sector. A few key stats and studies have been handy.

Comparison of attitudes to those in other countries is exceptionally important. Especially as New Zealand is a long way behind when it comes to addressing consumer impact. And of course when we say consumer impact we are implying business impact.

A picture of the extent of "lag" is evident in three studies:

One: Nick Jones & Associates conducted NZ research concluding late 2005. They found that 58% of people aged 10+ "think more highly of companies that support charities/worthy causes". This isn't overly surprising, but what it does emphasise is that companies should communicate their efforts to their customers.

Two: Moxie Design were funded by the Shell Sustainability Fund to conduct NZ ethical marketing research earlier in 2005. Their Solution Seekers report (155kb pdf) shows that 26% of New Zealand consumers "purchase in accordance with their social and environmental values".

Three: The UK Carbon Trust concluded British research last month that found 66% of consumers want businesses to act on climate change, and that "environmental concerns influence about about 50% of buying decisions".

Clearly the way the question is posed is important (for some research in this field click the Compass Network link at right). But for me, and for Kiwi businesses, there are two key points:

* Kiwi consumers haven't put their words into action yet (58% v 26%).
* Taking the UK as a sighter, there is massive growth looming in the New Zealand "ethical consumer" market (26% v 50%).

Granted, the 26% figure was arrived at prior to An Inconvenient Truth and the Stern Review, so it will be higher today. But the UK research was also conducted pre Stern Review.

The basic facts are clear. More and more people are looking at how they consume. The "in crowd" is getting bigger.

No comments: