Middle East - Stanton Chase International

MAY 2010
p5
From Stanton Chase Around the World
STANTON CHASE INTERNATIONAL
Going Green to
Become Greener
in Consumer Sector Nancy
Think about 1990s: Everybody knew that the Internet was coming …
Here we are 20 years later and the Internet is literally pervasive. I think
“GREEN” will become as pervasive as the Internet is today. It will become
a part of the way we live, the way we do business and how we function
as a society. The impulse to go ‘green’ is spreading faster than morning
glories and organizations of all types are launching green campaigns.
In almost every opinion poll on the subject, customers say that are very
concerned about climate change, and they connect the dots back to their
own purchases. Consumers are no longer just shopping, they are
voting for change.
The polls show that 87% of the customers worry about the environmental
& social impact of the products they buy. However, no more of 33% of
the customers say that they are ready to buy green products or have
done that.
To realize the green market’s true potential, businesses must help
customers by removing the hurdles between intentions and actions.
When customers reach the cash register, they often forget their eco –
friendly attitudes. Businesses can do a lot more to help would be ‘green’
customers walk their talk. Private industry has enormous purchasing
power and is easier to educate. Wal Mart for example has been eager to
spread its environmental Know How as it works with its suppliers to trim
packaging. To increase sales of environmentally sensible products,
companies must also remove five ‘green’ product’s consumption
barriers – lack of awareness, negative perceptions, distrust, high
prices and low availability. In other words, companies have to move
customers through every stage of the purchase process – from being
aware of eco-friendly products to finding them. A business that sells
green products must see itself as an educator not a sales machine.
Going green while staying competitive can be challenging and companies
may rightly ask whether cultivating green customers is worth all the
trouble. I believe that it is more than just worthwhile. It is the imperative
for success. Once obstacles that now make it hard for customers to act in
their environmental beliefs will be removed, sales will explode. Companies
will build a reputation for eco friendliness, more talented employees will
be attracted, the consumers will be more inspired and loyal and higher
prices will be charged for these green products.
Overall, companies refresh their brand, enhance their reputation and
protect their market share from new green competitors.
Carbon Labelling, can be discussed as a more advanced & specific
practice of Retailers and Consumer companies (suppliers), for the
achievement of major customers’ impact and their longevity in the
marketplace. Carbon labels show consumers the “carbon content”
of an individual product; its total amount of carbon dioxide emitted from
every stage of its production and distribution, from source to store. By this,
Exclusive
Newswire
Mathioudaki
products try to build their green credentials and to this effort companies
and retailers are united for.
A good parallel here is calories. “Twenty years ago if you asked somebody
what number of calories was high and what was low they would not
have known. The same thing could happen here.” The portion of the
population that is most interested in sustainability and the early adopters
of sustainable products, are significantly more likely to indicate that these
logos have a high level of purchase impact and that a certification / a seal
mark indicating a product is environmentally friendly raises the likelihood
that it will be bought. Thus, carbon labels could transform the behavior of
companies and consumers.
Carbon Reduction Label was officially launched last year (2008) in
the UK with high street retailer Boots, Tesco, Walkers and Innocent
Drinks agreeing to pilot the scheme and moreover the EU Commission
under its eco-label plan and set individual criteria for each product
group before awarding the Community flower label. Currently, over
3,000 products including detergents, paper and shoes have received
the recognition. Food products will not only be assessed according to
their production processes, but also a lifecycle approach, including the
environmental impact of transport, the agreement states. I agree that the
more regulations we have, actually the easier it will be to market green
products to consumers.
Tesco has already become the first Carbon Trust pilot brand to let
consumers compare the different carbon footprints of similar products,
such as washing detergents, by including the information on packaging.
Giving customers comparable data will improve their understanding of
carbon footprints, says the Carbon Trust’s Euan Murray. “This is the next
revolution that needs to take place,”
“If everyone adopted a western lifestyle,
we would need 5 earths to support us”
James Bruges, author of the “Little Earth” book
Nancy Mathioudaki is Partner in Stanton Chase Athens and EMEA
Regional Practice Leader for Consumer Products and Services at
Stanton Chase International