The moment you think about what you bought and where you bought it from, you have become a conscious consumer. In addition to price and value, consumers are becoming increasingly concerned with the social impact of the products they buy, from production to disposal. Especially with the socially-minded Generation Z and Millennial population.
An article by Forbes, Gen Z Is Emerging As The Sustainability Generation, posits that the Pandemic has put sustainability into a hyperdrive, and Gen Z is in the driver’s seat.
In a report, Gen Z Shoppers Demand Sustainable Retail, the vast majority of Generation Z shoppers prefer to buy sustainable brands and are most likely to make purchase decisions based on values and principles.
According to Qualtrics research, Gen Z (22%) is nearly three times as likely as Baby Boomers (7.5%) to say they are very familiar with the brand values of the products they choose. Gen Z was 45% more likely than Baby Boomers to stop purchasing from brands that they do not feel connected with.
Having grown up with smartphones, the Internet, and social media, these digital natives are more likely to buy from brands that have established clear values, inclusivity, and have a strong online community. To be relevant to these target segments, brands are now required to realign their corporate purpose to adapt to the demands of an increasingly conscious consumer base.
These Generation Zs are referred to as Conscious Consumers who want to make a meaningful impact through their buying decision as they see their purchases as a nod of approval for brands whose social, political, and moral values align with theirs.
Green is the New Gold
Businesses should lead, not follow. A global business that understands sustainability presents a market opportunity and recognises there is still much to do to capture the growing conscious consumer.
According to Jacquelyn Tan, head of group personal financial services at UOB, “Sustainability starts with consumers’ everyday choices—such as where they live, how they commute, which brands/merchants they spend their money at and what they invest in.”
A study by UOB also signified that respondents in Singapore have been shifting toward a more sustainable lifestyle. In the study, 31% of respondents claimed that they are willing to pay more for sustainably sourced products or services, while 36% have been replacing their current sources of goods and services with more sustainable alternatives. Along with this trend, the eagerness for green and sustainable investments is also growing across Singapore.
In the transportation sector, with the growing numbers of electric vehicle (EV) usage, conscious commuters may adopt electric vehicles or electrified public transport as commuting options. In Singapore, several multinational banks like DBS and OCBC have offered green car loans with lower interest rates to encourage car owners in Singapore to reduce their carbon footprint by switching to cleaner modes of transportation. For instance, the DBS Green Car Loan provided a 1.68% p.a. car loan to all customers purchasing new and used electric/hybrid vehicles.
Source: Watt
In the financial sector, several governments provide opportunities for for-profit organisations including SMEs to expand their business operations around new sustainability loans and grants.
Launched in January 2021, The Monetary Authority of Singapore (MAS) launched the Green and Sustainability-Linked Loan Grant Scheme (GSLS) to help corporates of various sizes and sectors to access green financing and adopt sustainable business practices.
In Singapore’s food sector, the Singapore Food Agency (SFA) has been rolling out initiatives to help the country ramp up their production and increase the momentum in achieving the national goal of ’30-by-30’. The goal was initiated in 2019 to raise Singapore’s ambition for local food production and enhance the resilience of Singapore’s food supply. This goal complements other strategies such as the diversification of our food imports, facilitating companies to grow overseas, and stockpiling of food items.
Source: Lianhe Zaobao, Khalid Baba – taken from The Strait Times
To be resilient with these emerging opportunities, brands need to take a stand, establish a circular strategy and narrative around their value chain, and pay attention to the concerns of their stakeholders. It might also lead to the development of new and innovative business models, identification of new value streams, and the creation of new partnerships across industries and value chains.
There are four ways to attract Conscious Consumers:
Appealing to the Conscious Consumers
1. Be Informed
Brands must have an authentic connection to an issue affecting the community and be ready to react to them. Consumers will want to know why your company is trying to advance this issue and believe your connection to the cause is sincere.
In the 1st Episode of Epic Nation Podcast featuring Bernice Tan – the Founder of Kind Citizen, we had an opportunity to learn about Kind Citizen. The tech-for-good platform connects people and corporations to pay-it-forward, where donors pay for essential products and services from merchants which can be redeemed by beneficiaries on the website.
As a Social Enterprise, Kind Citizen is committed to inclusivity by having a broader range of beneficiaries — such as frontline workers, mental health support staff, caregiver supporters, special needs individuals, single parents and ex-offenders.
2. Establish Clear Values & Mission
Ensure all stakeholders are aware of and in alignment with your values and purpose. Companies involved in a cause must do their due diligence to represent it and advocate on its behalf from a place of respect and integrity.
Establish clear values & missions can be started by redefining your company’s brand statement through analysing three important aspects: your target consumers (their needs and personal values), what benefits or positive impacts your customers and community will receive through your products or service, and what makes you different from the competitors (unique selling proposition).
Propose your brand’s mission statement to your stakeholders and implement its core values into your business operation.
3. Tell Your Story
The most appealing marketing messages draw on the power of storytelling to get consumers invested. Constructing a successful brand storytelling strategy can help your customers learn more about your brand, your purpose, your value and your products.
As an example, Patagonia – an American retailer of outdoor clothing – is revered as one of the best brands that combine business with activism. Simply by looking at its social media feed, Patagonia shares content related to its values and commitments to the cause.
Recently in June 2022, Patagonia released a documentary called, The Monster in Our Closet. The short documentary uncovers the dangerous threads that connect the global clothing industry to the oil and gas industry. As we have been familiar with, plastics are essential for durable and high-performance clothing, however, plastic production has also been a major contribution that accelerating the environmental crisis.
Therefore, the narrative aimed to raise awareness of the global plastic pollution issue and encourage conscious consumers to be aware of their buying behaviour.
4. Involve Your Audience
As a conscious brand, give room for customers to share how they feel about your products, services and messaging. Consumers value transparency, accountability, and authenticity more than ever.
As an idea, you can include customer testimonials — whether by asking customers to mention your friendly and supportive customer service, the quality of your product, or the overall perception of your brand. Another way to engage your audience is by conducting live events that are relevant to your business profile or showcasing a cause that you support through your social media platforms.
Regardless of the form, involving your audience can be a great tool to acquire new customers and gain trust.
Building trust is a priority for brands that want to engage the growing population of Conscious Consumers as they want a deeper and more meaningful relationship with brands that they can take part in and be empowered by.
When brands fail to reflect what consumers care about, they will likely lose market share to more empathetic competitors. While those companies whose values are reflected in their actions will earn the loyalty of conscious consumers for many years to come.
At Epic Dialogue, our goal is to help mission-driven organisations amplify their brand and CSR initiatives through our unique combination of digital marketing, events, and branding capabilities. As strong believers of doing well by doing good, we propel businesses to greater heights through our 360° Sustainability Communications Solution.
We are open to work, collaborations, partnerships, and general discussion on Singapore’s hottest topics on Sustainability and CSR. Contact us or visit this page to see our previous works and impacts.
