The contradictions of consumer expectations

The contradictions of consumer expectations

Consumers are choosing a more environmentally friendly lifestyle which affects how and where they shop. This shift in expectations presents new challenges for online retailers. The rise of eco-friendly consumers means sustainable packaging and carbon offsetting has more value and retailers need to adapt.

Consumers want to reduce their carbon footprint

From food to clothes, consumers actively seek to reduce their carbon footprint. And they expect retailers to do the same by offering a range of sustainable products and alternate delivery options¹. A PwC global survey reported that 51% of respondents heavily consider factors related to sustainability when shopping².

The green gap

However, there is gap between the consumers’ intention to act sustainably and their actual behaviours. Despite the desire to reduce their carbon footprint, it’s not something consumers are willing to wait for or can realistically afford. 70% of the consumers’ markup threshold is 10% of the retail price, yet most green products are 75% more expensive ³. This is what we call the green gap – the difference between prices and what the mass market will tolerate.

Consumers desire sustainability

Eco-friendly consumers are more likely to buy from companies that consider sustainability. In fact, 81% of consumers expect companies to be environmentally aware in their marketing and advertising⁴. In another survey, 67% of consumers say sustainable materials are necessary when buying clothes, while 63% notice how a brand promotes sustainability⁵. As they seek sustainability, their value-driven purchasing has led to more consumers turning to second-hand shopping.

But price and convenience matter more

Although consumers say they want eco-friendly products from sustainable-minded businesses, they can be unwilling to pay more for these products. Consumers want the best deal when making a purchase and only a third are willing to pay more for eco-friendly products⁶. They know shipping by air is not as eco-friendly, yet other delivery methods are slow and most consumers expect an efficient delivery or collection service⁷.

How businesses can adapt

The seemingly conflicting expectation of the present consumer is a challenge that can be solved with low impact retail. As most of the sustainability cost occurs at production stage⁵, reviewing and reimagining what consumers can do with product packaging or shipping materials can go a long way. Biodegradable packaging or boxes that consumers can upcycle can emphasise the brand’s values. Gousto Recipe Box does this well, experimenting with edible film packaging for their meal kits on some product lines⁸.

As the demand for sustainability grows, affordable, sustainable options will become an expectation rather than an exception. Leveraging these trends will help businesses adapt and meet consumer needs.