Sustainability is never far from the news headlines. Devastating floods last year in Pakistan and this year in Brisbane and Brazil, plus the unprecedented snow disruption across the UK reminds us all of the importance of the changing environment on our lives. Trends in Sustainability, a study by the University of Leeds reports that global media coverage of environmental issues overtook socio-economic issues in the late 2000′s, peaking during the UN Climate Change Conference in Copenhagen during December 2009.

In this post, Jess Wright, a new freelance researcher working with Juicy explores this timely topic in detail….

The issue of sustainability is a broad one; meeting the needs of the present without compromising those of future generations should force us all to reappraise the demands that we place on the environment, the economy and our society as a whole. But the economy is still suffering from the recession. Unemployment is rising, as are prices, and more households are likely to be adversely affected before things begin to get better.

So has the recession and this period of austerity pushed sustainability issues off of the consumer agenda?

ETHICAL PRODUCTS GAIN GROUND

There’s no shortage of evidence to suggest that ethical products and services – an important aspect of sustainable spending – continue to be an area of growth. The Ethical Consumerism Report from The Co-operative Bank shows that expenditure on such green goods and services increased by 18% between 2007 and 2009. Furthermore, the ethical market in the UK is estimated to be worth £43.2 billion, despite 2009’s 2% drop in overall household expenditure as a result of the economic downturn.

Ethical food flying high

Sales of ethical food and drink rose 27% between 2007 and 2009 to £6.5 billion, constituting 8% of all food and drink sales. But within this increase lie some tell tale signs as to the effect of the downturn in shifting the consumer mindset. Sales of Fairtrade and Freedom Food certified products have excelled, growing 64% and 300% respectively, but sales of organic food have decreased by 14%. Although still worth more in value terms – £1.704 billion compared to Fairtrade’s £749 million and Freedom Food’s £122 million, the decline could be indicative of the perception of organic as something of an expensive and somewhat elitist choice. Couple this with the increasing competition posed by the often cheaper but equally powerful messages attached to other types of ethical produce, the blow to organic sales is understandable.

Growth from personal products with ethics

Personal products, which include toiletries and clothing, were the fastest growing sector, increasing by 29% to reach £1.8 billion. Fueled by a shunning of fast fashion and the increasing acceptance of charity shop finds, the prevalence of highly fashionable yet ethical clothing companies such as People Tree, will have contributed much to this growth. A more stable performance was seen from green home products which grew 8% to reach £7.1 billion.

Services with a halo

Ethical finance was another area of growth. Perhaps revealing how disenchanted consumers are with traditional financial services providers, ethical financial products allow consumers to align their investments with their beliefs – be they human rights, social justice, the environment or animal welfare. The sector grew by an impressive 23% between 2007 and 2009 to reach £19.3 billion, according to The Co-op.

However when it comes to travel, it seems consumers’ beliefs may not prove to be so pressing as their need to get away from it all; a survey conducted by the Civil Aviation Authority revealed that only 7% of flyers are opting to pay the carbon offsetting for the emissions on their flights.

The sustainable consumer

Consumers opting for a ‘Lifestyle of Health and Sustainability’ have become sufficiently important in the US to get their own acronym – LOHAS. With their own dedicated website, Lohas.com, this audience is estimated to constitute 19% of the US population – a market worth £133 billion. Well educated, brand loyal and less price-sensitive than many consumers, LOHAS are highly influential; they don’t just make green purchases, they engage in environmental stewardship. This shift towards looking through a lens which is guided by the fair treatment of communities, people and animals is likely to be a view in which the rest of the world are likely to follow.

THE HEADWINDS

Whilst this evidence suggests that consumers are buying more green products and consuming more ethical food and drink, the advances of green products need to be put in the context of the wider marketplace. According to those figures from The Co-operative Bank, ethical spending in 2009 still accounts for a mere 6% of the UK’s total annual consumer spend of some £700 billion.

For many, the recession has shifted purchasing priorities in a dramatic way; the environment has been put on the backburner whilst more short-term, domestic issues come to the fore.

Price has become the dominant factor in purchasing decisions for UK consumers. Results from The Sustainability Tracking Study conducted by the Direct Marketing Association and fast.MAP express this succinctly:

“78% of respondents surveyed in July 2010 saw product price as more important than environmental issues, an increase from 36% in December 2009”.

A study conducted by Shoppercentric reveals that 55% of shoppers in the UK don’t feel that they can afford to act on their ethical principles.

This sentiment is echoed in the US too with 61% of consumers believing that green products are too expensive, according to the GfK Roper Consulting Green Gauge report.

These barriers to responsible consumption do differ across some regions though. According to Havas Media’s Brand Sustainable Futures report, the dynamic in the UK and US is true of other western economies whilst in fast growing markets, the purchasing barrier lies with unclear and inconspicuous labelling which fails to guide purchase and the larger problem of the poor and inconsistent availability of such products.

However the decision as to whether or not to buy green is taken in the context of other pressures too. There is a level of confusion which exists, scepticism even as to the authenticity of the claims made by brands to entice shoppers into buying ethically. TV programmes such as Hugh’s Chicken Run and The Big Fish Fight attempt to guide consumers when trying to purchase ethical and sustainable foods but they are still finding it difficult when faced with their usual, often cheaper default purchases.

This sense of hesitance and scepticism is also echoed in the US; according to GfK Roper Consulting’s Green Gauge report, 38% of US consumers don’t believe so-called green products are better for the environment.

Shifting Responsibility

Sustainability and environmental stewardship remain demonstrably high on the consumer agenda; 70% of those surveyed by Ipsos MORI in a UK nationwide poll in June 2010 feel that it is their responsibility to help to do something about climate change.

But given the complexities involved in making an ethical decision alone, it seems likely that consumers will increasingly expect brands and corporations to do so on their behalf. Continued take up of sustainable behaviour on behalf of consumers is more likely to come about through product design, and service and behaviour change initiatives. As a result, brands should be making it increasingly easier and evermore enticing to live more sustainably, so much so that it becomes the obvious choice.

This onus of responsibility placed on companies will aid to further shift their corporate social responsibility (CSR) guidelines from mere policies – hidden away in the depths of company information – to those that are truly embedded into the heart of the business and evident at all levels. Nike Better World not only documents the brand’s policies but does so in a consumer-friendly way. This is the kind of information you might find tucked away into any other company’s annual report but Nike document it in a format that consumers actually want to read.

THE FUTURE

Green and sustainability are ‘uber’ macro trends that are definitely set to continue. Adoption of green products and services is dependent on a continued shift in behaviour – by both manufacturers and consumers. And, as the evidence suggests, this change could be a slow one and one with many nuances.

Eric Ryan, co-founder and CEO of environmentally friendly home cleaning products company, Method recently compared the take up of green products to the “Gartner Hype Cycle” of technology adoption in an article in AdAge.

The Hype Cycle characterises the ups and downs experienced as a much-anticipated new technology hits a market. Ryan describes how we have moved past the initial frenzy of media publicity and high expectations following and into a “trough of disillusionment”. This period of scepticism, which many of us now find ourselves in, comes about as products fail to meet our expectations. Essentially we are witnessing the wheat being cut from the chaff, as a number of less-than-legitimate ethical propositions and products fail to deliver and fall by the way side.

All in all, though the future looks bright. In part II, we will highlighting how brands are experimenting with their sustainable offerings and finding ways to practically apply them into more of a mass, not simply niche, market.

Look out for part II coming soon revealing more about sustainable trends in an age of austerity…

You can read more about Jess on the ‘about us’ page.

Youth and the environment are both instrumental forces creating change in economies across the world. So I was interested to delve into a new report from the United Nations looking at this subject.

The full report ‘World Youth Report: Youth and Climate Change 2010 ‘ has been compiled based on interviews with young people as well as youth organisations around the world and contains an overwhelming amount of information on this subject (all 200 pages of it).

Very broadly it looks at the following elements:

-       An explanation of climate change: evidence, impact on our ecosystems and frameworks in place to combat it.

-       Broad consequences of climate change to society and its impact on young people’s livelihoods.

-       How young people are being affected by climate change in terms of consumption, behaviour and lifestyle.

-       Existing youth efforts and initiatives to combat climate change.

The third section around behaviour and lifestyles is where it gets most interesting.

A consumption paradox

An underlying point from the report is that whilst young people are among those most concerned about the environment, the green agenda does not significantly influence purchasing decisions among the young cohort.

Conspicuous consumption remains ‘central to identity construction’ for youth today. It’s still all about having the latest cool thing, be it fast-fashion, the latest gadget or must-have item. Since they have relatively few financial commitments, this only fuels consumption. According to a UNEP/UNESCO survey, when it comes to buying, environmental impact and sustainability is less important to youth than trendiness, price and quality.

Rising wealth among young adults in consumers in rapidly developing economies is only raising levels of consumption of this group on a global level, putting more challenges on sustainable resources. Moreover, digital communication and technology is helping to spread advertising messages fuelling conspicuous consumption. Although you could also argue that the green agenda has also gained awareness among youth due to the very same digital and social technologies.

Other barriers to the adoption of more sustainable consumption among the young cohort include (based on the report):

o   Green products are often perceived to be incompatible with the needs of youth. I’m taking this to mean not relevant, although it doesn’t really explain this well.

o   Green substitutes are often not available that also “serve the same identity building function”. This is a bit surprising as greener products and services have been growing in number. Nike recently released some limited edition shoes made from shredded magazines. Perhaps these greener products are not hitting the right mark with youth?

o   Young people have a lack of information about substitutes/alternatives available.

o   Finally, there is a lack of real understanding about how their purchases influence the environment, underlining the importance of education.

Youth mobilize for climate change

Although youth may not be making changes to purchasing decision, their concern for the environment has put them at the centre of debate and there are many youth-led organisation with a commitment to spearheading change.

Social technologies have been instrumental in enabling these organisations to grow in size. The International Youth Climate Movement is “a worldwide coalition of youth organisations working to inspire, empower and mobilize members of the younger generation to take action on climate change.”

The educational challenge

The educational challenge centres not just on raising awareness through formal education but also getting youth involved in practical projects that benefit sustainable development.

The UN considers ‘the ladder of participation’ outlining different levels of involvement, which i rather quite like. Greater levels of empowerment are experienced by youth as they move from 1 to 5. This is not dissimilar to the evolution of marketing from push to pull tactics.

1.     Informing and educating young people

2.     Gathering information from young people

3.     Consulting with young people

4.     Involving young people

5.     Establishing collaborative partnerships with young people

Source: UN/International Association of Public Participation, 2007

Overall, the report’s findings suggest that there is a big opportunity for brands to convert these so-called ‘green patriots’ into consumers of more sustainable products. But there are major hurdles in terms of image perception and education on why buying sustainable is so important.

Quite simply a must read if you’re living in the advertising, marketing or media world.

There are already a ton of predictions being pinged around the Twittersphere for 2011. This one from the Barbarian Group caught my eye. it provides a concise and easy to digest summary of some of the broader digital trends set to impact our worlds in the coming year. It’s sure to be an exciting year ahead me thinks…

I’ve become a little frightened of late at the amount of stuff that is now ‘made in China’ or other faraway destinations and like many people, I’m interested in buying more local or authentic products from a destination. (Sorry China, nothing personal).

When I was over in Belfast last week I stumbled on an Irish retail brand called Avoca and instantly fell in love. Everything in the store is born and bred Irish, from the cups through to the clothing, the food label and an array of quirky, vintage products. It is perhaps what you would expect from a family-run brand that dates back to 1723 and a clothing mill located in the Valley of Avoca.

But I’ll go further and say this brand is much more than just about heritage. Their mission is ‘to create joy and have fun’ and this comes through clearly in their store concept. From the vibrant colours used in the foodhall, to the tea cup display lined up on the walls and really lovely staff.

Sadly for me their stores remain located mainly in Ireland and N. Ireland – apart from one in the US – but I was excited to see that their website offers a range of products and does a pretty good job of recreating the retail experience for me, backed up by their own Facebook and Twitter feed.

Here’s a couple of shots of the store – Go visit or browse if you can.

I’m in the midst of writing the new Juicy Mag at the moment, looking at sustainability and ethical trends from a business, marketing and consumer standpoint.

More and more companies are taking sustainability altogether more seriously, but it’s a complex field that impacts the entire value chain of a business and where authenticity and an honest approach are absolutely critical, especially if you want to avoid being slammed for greenwashing.

As CSR becomes a a more central part of business ethos and I believe a bigger factor in brand differentiation, companies are going to need bigger and more clever ideas to demonstrate the lengths they are going to.

On my information travels I stumbled on a really quite cool initiative by Electrolux called ‘Vac from the sea’. As you can probably deduce from the title, the company is producing a line of new vaccum cleaners using the mass of plastic accumulating in our seas. They have a blog showing you how this is being done and you can follow on Twitter @vacfromthesea

Electrical goods manufacturers have a big role to play in relation to sustainability. The product life span of electrical and white goods has undeniably been declining.

How many times have you tried to get a new spare part for your hoover or appliance, only to be told it is cheaper to buy a new one? I’ve been there a few times.

Although I’d like to see how their existing products could be made to last longer and/or reused better, it’s good to see a big company like Electrolux making an effort to clean up our environment and reuse waste as a raw material.

It’s central to its broader sustainability ethos you can read about here. However, unlike these rather confusing corporate pages, the campaign itself speaks volumes about the lengths this company is going to.

If you’re interested in finding out what sustainability is all about, check out this great little animation provided by @Fabianpattberg via @davidcoethica – great people to follow on Twitter if you’re interested in this field.

Buying good quality, locally reared meat has undoubtedly gained popularity on the shopping list in recent years. A combination of meat scandals, concerns over animal welfare, celebrity endorsements (think Hugh F-W) and a more genuine care for what we put in our bodies is championing demand for quality, good tasting meat. It may be pricier, but there are many who see value in going premium.

Enter…The East London Steak Company delivering the best cuts of steak direct to your door

Now there are not many food products that can achieve the wow factor, even before you’ve eaten them. Innocent has done it quite well, but really I can’t think of many products that interest me on the packaging front, especially in the food/foodservice department.

For me The East London Steak Company is one of them. In terms of an out-of-the-box experience, it is up there with Apple in my mind. Not bad for a slice of steak. Here’s why:

• All the meat is individually wrapped with a printed label that includes the customer name (lovely personalisation) plus useful information such as date it was packaged, used by date etc…
• Each slice of meat has a ‘provenance card‘ telling you exactly when the meat was killed, the farm it came from etc…
• It’s all in recycled paper/cardboard boosting my ethical halo
• It comes in lovely box that feels a bit like unwrapping a present

To me all these elements demonstrate real authenticity, but also the love and care put into getting the meat to my doorstep.

I suppose one of the key takeaways here is just how important food packaging can be to delivering a customer experience. Design is becoming such a more integral part of the product today and its great to see it translating into the foodservice world.

Here are some pics:

Would love to know if you have any examples of food/drink products that wow you in the packaging department? Or even outside the food industry.

We all know that consumer-generated content dominates on the now ubiquitous video channels like YouTube and Vimeo, but marketers are making much more use of video content as well.

Recent research from eMarketer highlights the growth of video content by corporations and marketers and highlights that in some verticals, like retailing, it is no longer a luxury but a necessity to have video content online.

• Forrester reports that over two-thirds of the top 50 US online retailers now have video content, up from less than one-fifth in 2008. But it’s not just the marketing dept doing all the work.

• One-third of Fortune 500 companies are now doing some kind of video blogging. (Sourced from same eMarketer article)

A critical transition seems to be the creation of ‘video content’ as opposed to just ‘video advertising’. For years now we’ve had TV ads and virals on the web, but with the ‘social web’ developing at a pace, marketers are exploring other ways of using video as content to engage, inform and entertain.

One example I quite like is from Strada, the Italian restaurant chain. Strada uses video content to show us how to re-create their recipes at home. Step-by-step tuition is given by its top development chef on how to make a range of  Strada recipes by following the video online.

Not only do these videos connect us more intimately with the brand and its products, but they encourage more time to be spent engaging with the brand.

And you know it works! I now know how to master the art of making the best bruschetta al pomodoro.

An extra benefit is accessibility and shareability. You can download the videos via iTunes to watch on the iPod or iPhone and then share them with your social networks.

Do you have any other examples of video content – as opposed to advertising – that works for you?

If you’re in the business of marketing in any shape or form, I’m sure you know just how important it is to understand and harness the megatrends impacting your business.

The infamous BCG (Boston Consulting Group) has been studying the megatrends shaping our worlds for a number of years. It defines this simply as those elements that “hold the power to reshape the landscape of economic opportunity and risk.” And there are many that continue to exert tremendous impact…

According to BCG, 62 of the 78 megatrends it monitors continued to grow during the recession in terms of influence on markets worldwide. Many bearing heavily influence on the performance of multi-million dollar industries.

Trends that have strengthened:

• Technology: Growing online usage; transition to mobile
• Health and wellness: driving organics; nutraceuticals
• Demographic shifts: ageing population in developed economies; middle-class growth in rapidly developing  economies (RDEs)
• Downsizing consumption: trading down

Overall, BCG highlights two ‘cluster trends’ that are pivotal to many industries:

• Asian ascent: Underlining the rising power of RDEs, growing consumer affluence and the power of companies within these economies
• E-migration: Reflecting the fast migration of commerce from physical to online channels. This is obviously a biggy in terms of the extent to which it is quite rapidly reshaping industries, not least publishing.

The full BCG Focus report is called Megatrends: Tailwinds for Growth in a Low-Growth Environment. More details on how to get hold of a copy here.