LOHAS - Green brands, global insight

Green brands, global insight

Findings from the 2010 ImagePower Green Brands Survey. This year marks the fifth year of the ImagePower® Green Brands Survey and our most global yet. It polls more than 9,000 participants in eight countries—Australia, Brazil, China, France, Germany, India, the United Kingdom, and the United States. What began as a small survey to test U.S. sentiments toward green brands has grown into a global barometer of consumer perceptions and behaviors around sustainability. In five years, a lot has changed. The terms “green” and “sustainability” are now far more prominent in conversation and government policy. Ecological disasters have made international headlines and brought worldwide attention to environmental issues. And an economic recession has tested the movement’s mettle. Throughout it all, the Green Brands Survey has tracked perceptions and behaviors, and the 2010 survey is as insightful as ever.

Among the questions the survey set out to answer:

Do consumers care about environmental value when they choose a brand, product, or service?
How does consumer interest in environmental sustainability vary by country?
How have consumer perceptions of “green” changed from 2009 to 2010?
How do consumer environmental preferences and concerns vary by country?
What perception challenges must brands overcome in the green space?

The good news is that respondents in most of the eight countries showed a general increase in concern about the environment, up an average of 3.5 percent over 2009, even in mature markets such as France, the United Kingdom, and the United States. Brazil and India remain the exceptions, where residents are still more concerned about the environment than the economy (as they were in 2009). Given that this is the second survey conducted during the global economic downturn, we’re not surprised. Consumers are understandably concerned about their economic livelihood, but we’re glad to see the environment gaining ground.

Key findings from the 2010 Green Brands Survey include:

Most consumers want to buy from environmentally responsible companies

More and more, consumers are demanding that companies act in environmentally responsible ways. Paramount among these is reducing toxics. Consumers in every surveyed country consider reducing toxics the most important act an organization can take, and it has become the cost of entry for brands in most markets. Water conservation takes second place in the minds of respondents in Australia, Brazil, China, and India. While consumers in France, Germany, and the United States focus on the use of recycled materials, British consumers show the most interest in reducing the amount of packaging used, ranking it second behind toxin removal. Local values like this should be kept in mind when companies are developing strategies to communicate the “greenness” of their brands.

The market for green products is growing in emerging economies

The 2009 survey showed that consumers in developing countries want to see more green products on store shelves, and we found that wish is still growing in 2010. While 30 percent of all survey respondents plan to spend more on green products next year, in Brazil, China, and India that number rises to more than 70 percent. In China and India, this is a 9 and 3 percent increase, respectively, over 2009. Consumers in most of the eight developed countries surveyed did not exhibit a similar increase, suggesting they’ve hit a plateau as green products and services become widely available—and presenting a new set of challenges for marketers.

Environmental concerns vary by country

While global trends are noteworthy, it’s often where they diverge that reveals the real insight. Among this year’s is the ranking of environmental concerns. Climate change remains top of the list among consumers in five out of the eight countries surveyed. Energy ranks second in the United States, but in the United Kingdom it ties for first alongside climate change. Water management leads in Australia, perhaps because of Australia’s recent droughts, and deforestation tops the list of concerns in Brazil and India. The key lesson for marketers is not to assume that everyone interested in green is concerned about the same aspects—and don’t adopt a homogeneous strategy to reach them all.

Hurdles to buying green vary by market

Despite having the interest, knowledge, and intent to buy green products and services, consumers around the world still often fail to do so. Why? Cost remains the biggest hurdle in Australia, France, Germany, the United Kingdom, and the United States; consumers just aren’t always willing to pay more for green products and services. In Brazil and India, limited selection presents the biggest problem; consumers can’t find green products to buy. In China, confusing labeling makes purchases a struggle; shoppers can’t figure out which products are truly more ecofriendly.

Consumers learn about green products and companies in different ways

The good news is that consumers generally trust green advertising, especially in developing markets (the exception being France, where consumers are more skeptical). However, marketers should note that consumers in different countries rely on different signals to indicate which products and services are ecofriendly. In China, France, and Germany, for example, consumers trust certification marks to help them navigate through confusing green labeling.

Data from the Green Brands Survey can be cut and dissected in many ways, across countries, categories, and consumer segments, but the insights are always fascinating. For marketers the lesson is clear: Green is an evolving space with only one mandate—participate! As we enter this new decade, all signs indicate that green will become the cost of entry in many industries around the globe, and brands should be sure they’re informed and ready to act.