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Does staying "green" still matter to consumers as they shop? [Issue 13; February, 2009]

As the deteriorating economy reshaped fundamental retail strategies throughout 2008 the entire notion of environmentally sensitive actions as a competitive advantage was put into question. Does it still matter to consumers? Does it matter as much? Have economic concerns eclipsed environmental ones in the eyes of consumers? How have eco-centric consumers matured?

As the deteriorating economy reshaped fundamental retail strategies throughout 2008 the entire notion of environmentally sensitive actions as a competitive advantage was put into question. Does it still matter to consumers? Does it matter as much? Have economic concerns eclipsed environmental ones in the eyes of consumers? How have eco-centric consumers matured?

The results from the November 2008 survey of 1,600 consumers indicated that the economy is clearly having an effect on shopping, but green continues to impact shopping and purchasing behavior. Despite the current economic crisis, green continues to grow in importance to consumers. Compared to 2007, more people purchased a product that was specifically environmentally-friendly or green and a growing percentage of consumers want retailers to utilize green practices. In fact, 40% of consumers shopped at specific store because it was more green-friendly. Among retail categories, supermarkets and discount stores made the biggest headway communicating their green orientation.

The green performance stigma is disappearing, with 85 percent of respondents saying that the green products they purchased performed excellently or very good, compared to 45 percent in 2007. But consumers are not willing to spend much more green on green; nearly 70 percent are willing to spend just five percent additional on these products.

In conclusion, retailers need to be doing more. Retailers are actually declining in effectiveness in promoting their green stance. Fifty seven percent of respondents say that retailers aren't doing enough in terms of environmentally friendly activities in 2008, as compared to 54 percent in 2007.

So, the message from consumers on green is that today's tough economy has shifted shopping and buying behavior, but green continues to gain traction. Consumers want more green products, better and expanded education, and more information from retailers on green initiatives and products. Clearly, there is an important industry need and opportunity for more and improved PR, education and consumer information on green.

This timely research is a a joint venture between NRN a National Research Network and McMillan Doolittle who partnered to update the core research upon which the book "Greentailing…and Other Revolutions in Retail" was based. Specifically, the work was refreshed to take into account the influence of the economic recession and shed light on the new face of Greentailing.

We are currently in process of development for the third update on our green survey, which will be conducted in July 2009. For this version, we are including additional questions related to specific industries and retailers. We are seeking additional partnerships for this survey. If you are interested in including specific questions for the July 2009 survey, please contact us to discuss opportunities and options.

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