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Green products are still in demand
Consumers are buying smarter in an increasingly tough economy
Green products are still in demand -- and smart retailers are stocking them in greater numbers
By John Wiebe, Special to the Sun April 27, 2009
As companies struggle for market share during this time of unprecedented global economic turmoil, conventional wisdom would have consumers turning away from the at-times costlier greener goods and service choices that are available today.
But are we actually seeing a decline in spending on green goods and services? The answer is, it depends.
Overall, consumers are becoming more and more conscious of how their choice of product impacts the environment and society as a whole.
But with a faltering economy now a factor, and people across the board spending less and displaying diminishing consumer confidence, consumers are seeking added value at all levels of purchases. If consumers are going to spend on a product, they want to make it count.
According to a number of recent research surveys, consumers continue to request green products, and in some cases demand is growing despite the challenges of tough economic times. Despite the fact that buying power is at an all-time low, the weakened economy has had one very positive impact -- it's forcing consumers to think more about their purchases in general and although they are buying less, they are buying smarter. People want products that are healthy, made locally where possible, are high quality, stylish and have a smaller environmental impact and/or help fund causes that are planet and people friendly.
And not unexpectedly, consumers now more than ever are demanding items that can save them money. Hence, when it's time to retire the hot water heater, upgrade that laptop, or change that light bulb, today's consumer will replace it with something more energy efficient, with longer term cost savings and a lesser impact on the environment.
It's clear consumers are deferring larger purchases such as cars or appliances for the short term.
It's also become evident that when consumers do invest in significant purchases, the models and brands they select will weigh both their sustainability value as well as the size of their pocketbooks.
Energy efficiency will be a key factor in purchase decisions, as is long-term cost savings over the life cycle of the product.
Larger retailers are starting to reap the benefits of carrying more product choices with an eco-slant. Retailers of significant importance, Costco or even Mark's Work Wearhouse, are offering a greater selection of products or clothing made from organic or more eco-friendly materials such as bamboo or recycled plastics.
Consumers want choice, and retailers are obliging. Calvin Klein is making bamboo socks. Organic cotton sheets are showing up at Winners, and everything from kitchenware to pet supplies is going earth-friendlier, giving consumers more choices to put their dollars where their values are.
Large retailers are morphing into a unique leadership role that's part social conscious, part environmental steward, and they will continue to play greater and more important roles in educating consumers about the importance of sustainability while at the same time providing more affordable options in the marketplace.
We are still early in the global green revolution, but there are encouraging signs that the retailer sustainability effect is real and is here to stay. Large retailers such as Wal-Mart can have massive impacts on their supply chains, which they can force to make real and significant positive change simply by enforcing compliance with basic environmental practices such as reduced energy and packaging requirements.
Nearly all consumer product categories face a tough road as the economic conditions continue to worsen. The declining economy will likely encourage companies to adjust their strategies to focus on cost savings inherent in their green products, whether through energy or water savings or improved gasoline mileage. But those companies that can combine green or socially responsible product attributes with quality, while maintaining a reasonable price point, will emerge the clear winners in the new global marketplace
These economic times call for a turning point, and now is the time to make a statement: To let retailers know that you as consumers want it all, and that you won't compromise the planet to get it. A new breed of Ethical, Progressive, Intelligent Consumers has been born, and they are here to stay.
John Wiebe is the president and CEO of the GLOBE Foundation.
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