In this interview, we are speaking with Zainab Hussain, an e-commerce strategist with deep experience in customer engagement and operations management. We’ll discuss consumers’ willingness to pay for sustainable products, barriers they face, and the role of technology in promoting sustainability, based on Blue Yonder’s recent Consumer Sustainability Survey.
What is the main focus of Blue Yonder’s fourth annual Consumer Sustainability Survey?
The main focus of Blue Yonder’s survey is to highlight consumer spending habits, concerns, and overall sentiment regarding brands’ sustainability initiatives. It looks at how important sustainability is to consumers when making purchasing decisions and identifies key product categories where this aligns with actual spending.
Why do you believe consumers are more willing to pay extra for sustainable food, beverage, cleaning, and beauty products compared to electronics and automobiles?
Consumers are generally more willing to pay extra for sustainable everyday items such as food, beverages, cleaning, and beauty products because these purchases are more frequent and essential. The perceived benefits of sustainability—like health and environmental impacts—resonate more strongly in these categories. Additionally, the premium for sustainable options in these areas is more manageable compared to the higher costs associated with sustainable electronics and automobiles.
How does consumer willingness to pay for sustainable products vary by age group?
Younger generations, particularly Gen Z and Millennials, place a higher importance on sustainability when making purchases. According to the survey, 88% of Gen Z and 86% of Millennials consider sustainability important in their buying decisions, whereas 77% of Gen X and 66% of Baby Boomers do. This shows a significant generational shift towards valuing sustainability.
Which region had the highest percentage of consumers considering sustainability important in their purchasing decisions?
The survey shows that France leads with 86% of consumers considering sustainability important in their purchasing decisions. This is followed by Germany (79%), the U.K. (78%), ANZ (75%), and the U.S. (74%).
What are the primary barriers consumers face when trying to align their purchasing habits with sustainability?
The primary barrier is the higher cost of sustainable products. Consumers often find it tough to justify or afford the premium prices associated with sustainably-made goods. Additionally, skepticism about the authenticity of brands’ sustainability claims can deter consumers from making these purchases.
How willing are consumers to spend more on sustainable everyday purchases?
Most consumers are willing to spend more on sustainable everyday purchases, with 47% willing to pay 5-9.9% more. However, willingness varies by region; 42% of consumers in ANZ, 39% in the U.K., and 38% in the U.S. indicated they are not willing to spend more.
How do consumers perceive brand sustainability claims in ads and marketing?
Consumers are generally skeptical of brand sustainability claims. Only 20% believe that brands accurately communicate their sustainability efforts, with trust being highest in France (25%). Trust has increased in the U.S. from 17% previously to 23% this year, indicating improving confidence in brands’ sustainability messaging.
What actions are consumers willing to take to make their purchases more sustainable?
Many consumers are willing to delay delivery times for sustainable purchases. The survey found that 30% are willing to wait an extra one to two days, and 36% are willing to wait up to five days, if it means being more sustainable.
Who do consumers believe is primarily responsible for upholding sustainability efforts?
Thirty-three percent of consumers believe that brands and corporations are primarily responsible for upholding sustainability efforts, while 28% feel it should be the role of government agencies and policymakers. Interestingly, 32% believe everyone has a role to play in promoting sustainability.
What are consumers’ views on the role of AI in sustainability?
Consumers are divided regarding the role of AI in sustainability. A third believe AI could lead to innovative and more sustainable outcomes, while another third are unsure of its benefits. Twenty-two percent are concerned about the environmental impact of AI and data centers.
According to Blue Yonder, what advantages can brands gain by focusing on sustainability?
Brands can gain several advantages by focusing on sustainability, including increased operational efficiency, reduced costs, improved customer satisfaction, regulatory compliance, and enhanced brand perception. Technology plays a crucial role in supporting brands to validate their sustainability claims, providing visibility, and ensuring responsible practices across their supply chains.
Do you have any advice for our readers?
For consumers, I recommend being proactive and informed about your purchases. Look for certifications and do some research on the brands you support. For brands and retailers, clear and transparent communication about your sustainability practices is essential. Embracing technology can help in achieving genuine sustainability and building trust with your consumers.
