The Rise of Conscious Consumerism - What You Need to Know
You may have heard the penned term ‘conscious consumerism’, or you’ve heard it come up in conversations. There’s a reason for that.
In recent years, there has been a significant shift in consumer behaviour. Conscious consumerism reflects a growing awareness and concern among consumers about the social, environmental, and ethical impact of their purchasing decisions. Brands with purpose as their driver are growing rapidly and gaining incredible results. For businesses, the only way to stay relevant (and that’s a secret to growth), is to adapt to these changes and be aware of the attitudes, and change yours.
But what is Conscious Consumerism exactly?
Have you noticed when you walk around the supermarket now, you see aisle ends filled with products from companies that are all certified B Corp? Or you see bays filled with eco-friendly deodorants, shampoos, household cleaning products etc? That’s conscious consumerism.
The demand for it has skyrocketed recently, and consumers are purchasing brands when they know there’s a strong sense of values - sustainability, ethical sourcing, social responsibility. Those consumers are choosing eco-friendly products to supporting companies with fair labour practices or are transparent about making a change. They are driving demand for good and services that align with their own personal values.
Research shows that a significant portion of consumers now consider sustainability and social responsibility when making purchasing decisions. For businesses, this means that traditional factors like price and quality are no longer the sole determinants of success. Companies must now consider their environmental and social impact as well.
Impact on Businesses
The rise of conscious consumerism is already, and will continue, to have implications for business across many industries.
Failure to adapt to this will result in reputational damage, loss of market share and ultimately, a decline in profitability. On the flip side, businesses that are embracing this right now and putting it as one of their highest priorities in their business are gaining a competitive advantage and fostering greater customer loyalty.
Key Considerations for Businesses
Transparency, accountability and authenticity are the three keys to thriving in an era of conscious consumerism. Even if they’re not perfect, being up front and honest about practices and policies is paramount. It requires a commitment to continuous improvement and a willingness to engage with consumers on important issues.
Challenges and Opportunities
Everything worth doing in life is usually difficult. And integrating conscious consumerism into business operations will present challenges, such as increased costs and perhaps supply chain complexities. But that is the price worth paying for ethical behaviour that makes a difference to the world. Along with the challenges, it also opens up so many opportunities for innovation and differentiation. Using analytics and research, businesses can gain valuable insights into consumer preferences and behaviours, allowing them to tailor their offerings.
A Proven Track Record
There are numerous companies who have successfully embodied conscious consumerism and put it at the forefront of their operations – and they’re reaping the rewards. One of my favourite brands, Patagonia, had built a loyal customer base by prioritising environmental sustainability and corporate social responsibility. Similarly, Unilever’s Sustainable Living Plan has not only enhanced its brand reputation but also driven growth and innovation across its portfolio of brands.
Do you want to know how you can be more conscious about your sustainability?
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