Are consumers buying sustainability? (part II)

In my previous post I spoke about why the consumer social agenda is so important. But what I'm now following up is the main concept that drives people's behaviour. It's ETHICS.

And due to the importance of such a value and its place in the "consumer mindset", an ignorance of ethical behaviour can be catastrophic for a company and its brand. Take Nike for example: in the 1990s news emerged that the sports equipment manufacturer was using child labour in the developing world to produce a range of footballs. A public campaign exploded – and this was before the days of widespread Internet use, viral communications and social networking – that caused the discerning public to boycott Nike goods and the activist public to demonstrate outside its retail outlets. Sales for Nike goods dropped away, and the share price tumbled, elucidating uncomfortable questions from the sports company’s institutional investors.

It still took time for Nike’s reputation, and share price to recover.

And today the relevance of such social and environmental issues is as strong as never before. Are consumers buying sustainability?

Yes, and in increasing numbers. Consumers are buying it, both notionally andat the tills. Mainstream awareness and concern exists and behaviours are changing. Consumers want to act and buy more sustainably, but are restricted by three key barriers – high price; confusion and lack of trust; and availability of alternatives.
What’s the result then? People are changing lifestyle and behaviours.



Today’s consumers know, and care more about what they buy, how it is made, what it is made from, how far it travels and how it is packaged. The way consumers gather and share information has also changed; they are empowered and linked as never before by the internet. Information can spread globally in an instant. The consequences of being found to be operating unethically, or in an environmentally unfriendly manner, as said in my previous post, can be damaging and long-term.


Some might argue the hype will exceed the reality in the short term. However, rather as the internet is revolutionizing retail, sustainability is an issue which will change the world.
Retail and consumer goods companies need to prepare now.







(written with John Foster)