New US consumer research suggests ongoing economic uncertainty will put pressure on retailers to innovate around sustainability

New US consumer research suggests ongoing economic uncertainty will put pressure on retailers to innovate around sustainability

The latest research into consumer attitudes towards sustainable retail products and practices confirms it is not easy being ‘green’.

The proportion of US consumers who said they occasionally bought ‘green’ retail products fell by 10% last year compared to 2009, according to research carried out by the Sustainability Resource Centre (SRC) established by US trade body, the National Retail Federation (NRF).

Although consumer attitudes towards greener products and branding had been rising steadily since the SRC started conducting its research in 2007, in partnership with consultancy McMillan Doolittle, they plateaued from 2008 to 2009, and dropped for the first time last year.

Retailers must seize opportunity

“It makes for an interesting, exciting and challenging opportunity for retailers,” senior partner at McMillan Doolittle, Will Ander, told delegates of the annual NRF trade show yesterday.

“Consumers are finally saying that the economy has shown up and they’ve jumped off the green bandwagon as a result,” he added.

The research update, which was revealed at the SAP sustainability stream at the NRF conference yeaterday, reflected that price was becoming more of deciding factor when it comes to sustainable consumer shopping than in previous years, when 45% of consumers cited price as the main reason they had not bought any green products in 2010.

Ander added that sustainable, ‘green’ initiatives were now mainstream, and so, consumers were reaching saturation point at a time when cost has risen up their shopping agendas.

When asked how much more they might be willing to pay for green alternatives, 50% said they would pay nothing more. And nearly 60% said transparency of information, in terms of exactly why a product, brand or retailer can claim to be green, was critical in their buying decisions.

“Something has changed in the way consumers respond to sustainability, where clearly the economy has been a driving force,” Anders added.

“What’s needed is for retailers to get those still interested in buying greener products to buy more of them. And they need to have pricing that are competitive or lower than their competitors.”

Technology is a key enabler

Paco Underhill, founder and chief executive of commercial research consultancy Envirosell (pictured), added that technology would be an essential tool in increasing the sustainability of retail operations and products.

“Technology is enabling a fundamental shift in consumer lifestyles that’s going to get us to greener future,” Underhill stated.

“But it’s not the technology in itself that’s going to move us forward. It will be the application of it,” he added, citing the example of sustainable lighting in a store that is linked to ambient outdoor lighting levels, cutting down on electricity consumption.