The Conscious Consumer
In recent years, more people – especially the Millennials – have begun spending their money in a different way. And no, I don’t mean Bitcoin or debit card, rather than cash. They are making purchasing decisions on more than just the item alone – whether it is a gift, food, fashion item, or something else. This is known at “conscious purchasing,” and this can be loosely divided into two categories: environmentally conscious purchasing and socially conscious purchasing.
What does this all mean?
First and foremost, it means that the shopper wants the purchase to have more meaning and impact than be just the item itself.
In socially conscious purchasing, the buyer seeks out items that “give back” in some way. They look for products that the manufacturer and/or retailer don’t just make a profit from by selling the goods; they use some or all of the profits to benefit others through charitable donations and philanthropic support of social programs.
In environmentally conscious purchasing, the shopper seeks more environmentally responsible products, seeking out more organic, local, fair trade, nontoxic, energy efficient, hybrid and sweat-free products. These are purchases that will help preserve the earth and our environment for future generations.
A Nielsen global survey done in 2015 found that Millennials (3 out of 4) are most willing to pay extra for sustainable offerings, However, Gen Z (ages 15-20) is not far behind with nearly 72% surveyed also willing to pay more for products and services that come from companies who are committed to positive social and environmental impact. After all, these are the generations who have the greatest stake in the future at this time. But Baby Boomers are not left out of the picture with a little more than half of those surveyed willing to pay more.
What do these purchasers look for?
According to the Nielsen global survey among the top purchaser-driving attributes are:
· company being environmentally friendly
· company being known for its commitment to social value
· product being made from fresh, natural and/or organic ingredients
“Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending Millennials of tomorrow, too,” says Grace Farraj, SVP, Public Development & Sustainability, Nielsen.
Being a conscious consumer – or maybe that should really be conscientious consumer – is a winning way all the way around; it’s good for the future, the environment, and the welfare of others. And that a good way to do business – whether you are the buyer or the seller.
