Consumer brands that demonstrate commitment to sustainability outperform those that don’t. This was one of the findings of the recently released Nielsen ‘The Sustainability Imperative’ report that studies insights on consumer expectations. In the past year alone, sales of consumer goods from brands with a demonstrated commitment to sustainability have grown more than 4 per cent globally, while those without grew less than 1 per cent.
In the Africa and Middle East region, 63 per cent consumers were willing to pay more for sustainable goods while globally, it is 66 per cent of consumers.
When it comes to purchasing, consumers are doing their homework. Checking labels before buying, looking at websites for information on business, paying attention to public opinion on specific brands in the news or in social media. “Consumer brands that haven’t embraced sustainability are at risk on many fronts. Social responsibility is a critical part of proactive reputation management. And companies with strong reputations outperform others when it comes to attracting top talent, investors, community partners, and most of all consumers,” commented Carol Gstalder, SVP, Reputation & Public Relations Solutions, Nielsen.
Topping the list of sustainability factors that influence purchasing for nearly 62 per cent of consumers globally is brand trust. “Brand trust and reputation are paramount. An excellent reputation makes it far more likely a company will be welcomed into new communities; partner with the most respected non-profits working on issues consumers care about most,” added Ms Gstalder.
However, there was a clear differentiation between developed and developing markets when it came to the importance of sustainable factors that influenced purchasing behaviors. Consumers in Middle East and Africa (MEA) gave more importance compared to other markets like North America and Europe. Consumers in MEA are 23-29 per cent more willing to pay a premium for sustainable offerings.
Five Ways To Win With Sustainability
- Focus on the growing interest from millennials and generation Z as nearly three-out-of-four consumers aged 34 and under willing to pay more..
- Highlight brand trust and commitment to social and environmental impact to drive purchases. Brands may have an opportunity to increase trust by demonstrating commitment to social and environmental sustainability, which is even more important for consumers who are willing to pay more.
- Have a discerning sustainability strategy to attract consumers in developed markets who are harder to influence and many consider sustainability a basic cost of entry.
- Support efforts like good deeds with marketing to attract and retain consumers.
- Keep regional, category and demographics in mind to fully understand consumer expectations.
