Can brands straddle the divide between green and value for money?
While the UK may now be technically out of recession, talk of a new age of austerity shows no sign of abating and money remains tight for many consumers. But while shoppers’ attention is focused very squarely on value, it appears they are still on the lookout for ‘values’ when they buy products.
Research from The Co-operative Bank’s annual Ethical Consumerism Report reveals that there is an appetite for low carbon products.
In 2008 consumers spent more than £6.4bn on green products and services – that is anything from energy efficient light bulbs to carbon offsetting - an average of £251 per annum. While this is only about 1% of total household expenditure, the figure represents an increase from 2004 when the equivalent spend was £4,4bn.
The recession has had little effect on this trend with green spending rising by 5% year–on–year, a trend which prompted Tim Franklin, chief operating officer at The Co–operative Bank, to point out that 'many people in the UK are working hard to adopt a greener lifestyle'.
He does, however, sound a note of caution over the pace of change, and calls a ‘new contract’ between business, government and the consumer if the UK is to meet its target of reducing carbon emissions by 30 per cent by 2020.
A survey conducted last year by the Carbon Trust among 1,000 people backs up the Co–op’s quantitative data. This found that two thirds of consumers think it is important to buy from environmentally responsible companies and the same amount are more likely to buy a product if they know action has been take to reduce its carbon footprint.
A handful (14%) have even vetoed companies because of their environmental performance, a figure that is bound to increase as awareness of the need for carbon reduction grows.
Interestingly, it is a similar story on the other side of the Atlantic. In the US, 82% of people claimed to still be making green purchases, even on the occasions when it costs more, according to a study commissioned by the non-governmental organisation Green Seal and marketing agency EnviroMedia Social Marketing. While the recession may have caused some brands to focus on price at the expense of highlighting their green initiatives, a raft of research shows that consumers did not stop wanting to make a difference.
It is those brands that persisted with sustainability drives who now, as the economy shows the first signs of improvement, may find themselves in pole position to reap the benefits.
