The recession in the beginning decade of the millennium was a rude brake to this limitless consumption. While this put a much needed break on the consumption patterns of many developed nations, it made evident the fragility of the economy as well as the boundaries for consumption of natural resources. Perhaps this was again triggered by the triumphant human spirit of planning for the future. The consumer as citizen is more aware of the environmental dimension and sustainability footprint of his consumption than ever before. Consumerism is visibly evolving to a stage of maturity where the consideration set is not only bound by the functional and economical parameters only but also with an environmental parameter.
The signs are at pretty palpable. Nothing explains better the success of the eco-conscious detergent launched by P&G. Be it ZipCar, Chevron, eBay, BestBuy or IBM each of them have embraced the philosophy in their product design. Some of the powerful value-chain brokers like Wal-mart are playing a significant role in driving such orientation with a crusading spirit – they are nearest to the pulse of the customer and they would know well. Consumers ensured Nestle shunned its not-so-eco-friendly practices when it comes to sourcing palm oil for Kit Kat on Nestlé’s facebook page itself. The Greenpeace campaign against BP has almost ruined the “Beyond Petroleum” brand name that BP used to enjoy and post the fiasco is at the verge of economic turbulence.
So what are the key take-aways from this early stage blood-bath:
- Consumers are increasingly thinking beyond their individual concerns when they shop for a product/service and are being more conscious
- Environmental concerns clearly forms a part of the consideration set in the mature consumer behavior
- Several surveys have shown that consumers are willing to pay more for sustainable products with similar functionalities and will definitely buy a more sustainable product at equal price ranges
This phase of maturity of consumerism is equivalent to Maslow’s self-actualization proposition when it comes to individual and professional growth. For a consumer the self-actualization is achieved through his concern for the larger eco-system and future generations as a whole.
I do not believe consumers will immediately shift to a more sustainable mode of consumption at the cost of the luxury and comfort they are used to. But this trend will slowly gain momentum as the leadership shown by individuals like Al Gore, organizations like P&G, IBM and Wal-Mart will move the sustainability orientation to the mainstream and the next generation will get educated on how imperative it is to protect our earth to avoid an imminent catastrophe.
Organizations who do not align themselves to these winds of change will be victims of the next wave of consumerism and may become irrelevant in the scheme of the things just like the DEC, despite reigning supreme in their current avtars. The changes that the organization need to make in their perspective and operation orientation is nothing earth-shattering. They need not be paranoid that sustainable consumption is an oxy-moron and rings the death-bell for consumption as we know it. Some of the simple things they should be careful about from right now are:
- Integrate the principles of Reduce, Reuse and recycle in their design philosophy
- Cognizant of the triple bottom line impact of their corporate operations
- Avoid Green-Washing!
I will discuss in detail some of these small yet significant changes that can enable differentiated value for organizations in my next blog post.
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Friday, 10 September 2010
