Buying goods is sometimes a necessary aspect of our life, from food and clothing to consumer electronics and vehicles.
While making purchases may be an important part of daily life, thoughtless consumerism is not necessary (and is not recommended).
Your purchase and use of the product only have a small impact. A product goes through a number of steps before being put on shelves, not to mention what happens to it once it has reached the end of its useful life (at least in its current form).
The social and environmental effects of products, from manufacturing to disposal, are impacting customers’ purchase decisions in addition to price and quality. In other words, there is a growth in conscious consumption.
The Rise of Conscious Consumerism
Consider your grocery shop visits. Do you think about the effects of each thing you put in your cart as you browse the aisles of what seems like an unending supply of food, drink, and home goods?
Many of us choose cost first, frequently out of need. But we may also think about the origin of this chicken breast.
Where did this chicken come from? What kind of a climate change impact does poultry farming have?
Yes, some people are curious about a product’s social impact as well as its top sales—these inquiries aren’t exclusive! What sort of inquiries do you make of yourself while you shop?
What is Conscious Consumption?
Although you presumably already know what conscious consumerism is, just in case, here is a brief explanation: Consumption that is motivated by a desire to make choices that will benefit society, the economy, and the environment is referred to as conscious consumption.
In other words, it’s a movement whereby customers choose to support ethical businesses by patronizing them instead of unethical ones, and occasionally by choosing not to make any purchases at all.
Therefore, a consumer who is socially or ecologically conscious will consider whether consumption is essential, then, after deciding to buy, they will consider the product’s provider and the influence the product has on each environment it touches during its development and distribution.
Consumers express a preference for businesses and goods that are better for the world by avoiding impulse purchases and choosing those that have a positive impact.
Conscious consumerism, also referred to as ethical or green consumption, is a concept that is gaining popularity daily.
But from where did it originate?
How Did Conscious Consumerism Start?
The term “aware consumer” first appeared in the 1970s. However, the earliest indications of the contemporary idea of “dollar voting” may be found in an article written by economist James Buchanan in 1954, which claimed that individual economic participation is a type of pure democracy.
Unsurprisingly, institutional consumer movements that promoted consumer rights emerged in industrialized nations like the U.S. and UK in the late 19th and early 20th centuries.
These movements were created to stop unfair labor practices, guarantee product safety, promote healthy market competition, and enact financial control (for example, cheaper access to credit and better loan education for borrowers).
Today’s customers have changed what it means to be consumers by placing a strong emphasis on making ethical purchases, even though advocating for consumer rights still plays a crucial role in market participation.
How the Conscious Consumption Movement Came to Prominence?
As more and more customers become aware (or should I say…conscious) of the harsh realities associated with each purchase, such as climate change and pollution, as well as drastically underpaid laborers with subpar working conditions, conscious consumerism is beginning to spread.
Consumers are becoming more conscious of the effects their choices have on all parties involved in the production and delivery of the products they purchase.
Purchasing is now simpler than ever thanks to technology. If you know where to look, technology can also make conscious decision-making simpler.
You can find most of the information you need to steer your purchasing habits toward more moral and environmentally friendly options online with a quick search.
Of course, Kilowott exists to link people with businesses, groups, and communities that share their beliefs.
Some businesses themselves adopt openness as a core value while looking for information. For instance, we at Kilowott openly discuss how their products are conceptualized, sourced, and constructed.
They involve their clients in the decision-making process so that everyone can observe how each product was created before being delivered to your home (in their own stone paper shipping material).
In the past, only individuals directly involved in the firm had access to this kind of operational intelligence, leaving consumers with few other considerations for their purchases beyond price and product quality.
The more we are aware of our influence, the more each of us can do our part to improve it.
Then, as individuals, citizens, and consumers, we can incorporate our positive impact into every choice we make.
Has Consumer Consciousness Changed the World?
Customers are also more interested in purchasing sustainable items as they grow more conscious of how consumer goods affect their bodies and the environment. According to reports, millennials are even willing to spend more for these products than they would for more harmful alternatives.
Not just millennials, either.
By 2021, customers in the US alone are anticipated to spend $150 billion on sustainable goods.
The Benefits of Conscious Consumerism
Being a mindful consumer may not always be easy to understand from the perspective of an individual.
What long-term impact would using organic soap or abstaining from a business notorious for exploiting sweatshops have?
However, when all the individual activities are combined, there are significant changes in the overall situation.
The same reasoning holds true for damaging actions like littering. If everyone shared this mentality, it may be acceptable for someone to discard a candy wrapper on the street. More waste than people know what to do with is already a problem in many parts of the world.
Additionally, consumer sentiment and individual behavior spur exponential change! In actuality, many of us make our shopping decisions based on price out of necessity.
However, industry adjusts to suit consumer expectations when people purchase (or decide not to consume) with impact in mind, increasing accessibility.
More people have the chance to comment on the morals and standards of our daily consumption as a result of increased information and product options.
All okay, but does it really matter? Do major corporations give a damn what we think? As we’ve already indicated, consumer trends are crystal clear: consumers want to interact with businesses that place a high priority on social and environmental welfare.
Only 20% of S&P 500 firms chose to disclose their environmental, social, and governance (ESG) information before 2013, thus it required serious detective work on the side of purchasers to even uncover it.
However, 90 percent of S&P 500 corporations submitted sustainability/responsibility reports in 2019, which runs parallel to developments in conscious consumption. Simply put, they are paying attention.
Not yet persuaded?
Let’s examine another industry, American organic farming, as an illustration of how mindful consumption can bring about change: Organic farming was a specialized industry with $3.6 billion in sales in 1997 twenty years ago.
However, as more customers came to value the idea of an agriculture free of dangerous synthetic pesticides that contaminate the air, water, and land, they began to change their purchasing habits, starting with food.
Sales of organic foods soared to $43.3 billion by 2016 and reached $72 billion by 2024.
The sector is currently witnessing a steady progression toward practices that are better for the environment.
Regenerative farming techniques will be used in agriculture in the future, and they have the potential to significantly improve environmental conditions and even slow down or stop climate change.
More good news: The influence of consumers is transforming markets and the way the world operates.
It appears that deciding to use renewable energy is more than just a current trend.
Renewable energy sources are now even more affordable than coal and natural gas as a result of rising demand brought on by individuals installing solar panels, purchasing renewable energy credits, and consuming green electricity for a number of purposes.
Future-proofing Businesses By Designing Products and Services Around Conscious Consumers
Selling to conscious consumers is the way of the future, despite the difficulties. Here is a step-by-step guide for snagging a piece of the billions of dollars in mindful spending that are available in the worldwide market.
1. Lead with empathy
Nowadays, brands are involved in more than just the sale of goods and services. They must now take the lead in promoting social justice and environmental sustainability, as well as communicating their dedication to bringing about change.
2030 and 2050 are too far in the future; brands must take the lead now. Because they are completely real and saw an issue before the market did, Patagonia, TOMS, and REI have prospered for this reason.
They consequently have a strong sense of goal that connects with customers and offers a gripping story that fosters trust.
Customer research and journey mapping can be used to find possibilities, comprehend consumer interests, discover how users interact with products, and pinpoint market gaps.
Do consumers care about ESG investment, contributing to the fight against climate change, recovering the environment, or addressing issues like social inequality or health?
The next step is to identify how you will supply eco-friendly products and services, tailor them to customers’ preferences, and convey common objectives.
These insights enabled brands to change during a period of significant change.
2. Define your connection to purpose and value
It’s likely that your company and its partners are currently dealing with major sustainability-related difficulties.
This could be due to a lack of raw resources, a lack of water, rising prices, harmful chemicals being used in production processes, disposable products producing an excessive amount of trash, impending regulatory requirements, or investor pressure to move more quickly.
These problems provide problems that must be resolved and present chances to increase ROI.
Whatever the problem, this is a fantastic chance to work cross-sectorally with innovators, even competitors, to drive greater and quicker change that lowers risks and costs and produces value by taking into account the demands and interests of customers.
Make connections with other businesses that share your goals and outline the value of your sustainability-related efforts.
3. Rethink sustainability
It can be challenging to think about how to incorporate sustainability into your current business model and product line.
The simplest way to think about sustainability is to look at the ‘S’ of the ESGs, or social justice, via the prism of these major areas: carbon, water, products, packaging, waste, and supply chain.
Resources are not equally accessible throughout the world, and people who are most affected by climate change are frequently not the ones who are speeding it.
You can investigate business opportunities, governmental regulations, technical requirements, and how to affect change by concentrating on these areas and comprehending global, social concerns.
We collaborate with brands to quickly reinvent business concepts, goods, and services.
To promote innovation and remove obstacles, we employ agile eight- to twelve-week sprints together with immersive brainstorming and gamification. The greatest concepts can then be recorded for later investigation.
4. Develop a holistic strategy
You can create a strategy to manage carbon, water, products, packaging, trash, and your entire supply chain once you’ve deconstructed sustainability and made it practical for your company.
You should think about the relationships and trade-offs between various options. For instance, it can make sense to concentrate on just one or two concerns at first, but you must be careful that any new decisions don’t have a detrimental impact on other important areas.
This process could entail generating fresh corporate strategies, identifying fresh revenue streams, or forming new alliances amongst various industries.
For their most popular spirits, Dunnet Bay Distillers introduced refills and closed-loop packaging to save packaging and carbon impact.
Water is frequently the most ignored of these important sectors, despite the fact that it is one of the most important inputs to industrial and corporate operations, consumes energy, and offers a wealth of unrealized business potential. Water conservation enhances community health, well-being, and social equality in addition to protecting a crucial natural resource.
5. Start small and scale fast
Consumers may have moved on by the time large brands analyze a problem and pilot a solution, which can take months or years.
By embracing agile approaches and a start-up mentality, you can speed up innovation.
Utilize customer data and insights, integrate technology and scientific solutions, optimize manufacturing procedures, adopt sustainability business models, and push change throughout your supply chain if you want to effectively transition from a pilot to a launch.
6. Create an experience around sustainability
Despite what customers may claim, it can be challenging to promote sustainability on its own merits because it calls for alternative choices and altered behavior.
The answer is to develop a new sustainable product with improved capabilities or a completely fresh experience, facilitating the adoption process.
There is currently a growing market for individual sustainable decision-making tools: Giki encourages individuals to live more sustainably and reduces their carbon footprint, Fat Llama allows you to rent nearly anything from neighbors in your region, and the Too Good to Go app works to cut down on food waste.
Brands do not, however, currently provide complete experiences.
Brands can, for instance, create platforms for eco-friendly services or package eco-friendly products with partners; provide financial tools to support value-based decision making; offer calculators so that customers can assess their own environmental footprints; provide interactive dashboards so that customers can learn more about their products and processes; and so forth.
Another alternative is to join or create platform firms, which allow them to scale swiftly and cheaply while gaining value from each new partner.
As an illustration, a financial services company may provide lower-cost home loans for eco-friendly renovation projects, connect to approved suppliers, and foster a sense of community around achieving objectives.
Of course, these initiatives only make sense when they provide consumers with genuine value and a unique experience.
Conscious consumers is here to stay
A significant trend that will have an impact on all consumer-facing brands in the years to come is conscious consumerism.
These customers want to support businesses that share their values and put people, the environment, and profit first.
They’ll inquire about the types of raw materials you purchase, where you get them, how you use them in the manufacturing process, how you go green with your operations, and who you partner with.
Market share will go to the companies who offer environmentally friendly goods and services at the same level of quality, cost, and convenience that consumers have come to expect. Although it’s challenging, we have shown that it is feasible.
Conscious customers will reward you with their long-term loyalty because they value long-term value.
You may tap into new market requirements, which will fuel corporate growth, when you lead with empathy, unite around a cause, and use straightforward frameworks to create sustainability strategies and innovation.
Being more nimble and experiential can be greatly prompted by conscious consumerism. Most importantly, you’re enhancing the condition of the earth while cultivating ongoing connections with customers that increase long-term profits.
Green is absolutely gold when it comes to selling to these customers. Need help in reinventing your product for the conscious consumer? Let’s talk!
