What green consumerism means for the commercial world?! As everything shows, in today’s day and age, there is a growing concern about environmental issues. As a result, consumers nowadays are increasingly concerned about environment-friendly products. Green consumerism is the degree to which consumers show off a preference for eco-friendly products. Indeed, individuals are becoming more aware of the environment and are trying to change their behaviour in various aspects of their life.
In the UK, people believe that the environment is the third most serious problem after Brexit and health. According to Statista, a survey conducted with UK consumers in 2019 revealed that a large number of them prefer to buy recyclable products and general products which are made in an environmentally friendly way and prevent single-use plastic. Mintel (2019) showed that even when it comes to household care products, consumers adopt sustainability, as they believe that the manufacturers should eliminate the usage of plastic for the packaging of their products or replace it with recyclable plastic.
But when this tendency to green consumption started? From the 1960s and early 1970s, people started to have concerns about environmental issues and in the 1980s the notion of green consumerism began to emerge. However, it was the 1990s when consumers and companies started to pay more attention to the environmental impact of consumption practices which elevated green consumerism into a trend.
Nonetheless, green consumerism has become stronger in today’s world and it is considered one of the top contemporary trends not only on a social level but also in the commercial world. Because of the emphasis on integrating environmental consciousness into the consumption process, the idea of green consumption has gained considerable interest today. According to a survey published by Nielsen in 2019, it was predicted that consumers by 2021 will spend up to $150 billion on green products, as they are becoming much more conscious of how their actions can affect the planet. With this analysis being somewhat true, it is evident that as a result of today’s consumer habits and services, the environmental crisis is putting a big toll upon large companies and organisations.
The concept of green consumption is escalating fast. Thus, green consumerism is impacting companies and various stakeholders. An environmental friendly strategy can be a powerful weapon for businesses, as it allows them to target various markets. The importance of implementing an environmentally friendly strategy can help companies to gain an advantage over competitors, strengthen their position in the market and it can also lead to long-term profitability. Green strategy adoption can also improve an organization’s image, and this is something that strengthens them as it leads to stronger brand equity within customers.
There are many companies today that adopt green practices in their business functions. For example, the fast-food chain, McDonald’s, cut its energy waste by 25% during its business operations using energy-efficient equipment. Moreover, the company has plans to use renewable and recyclable materials in all of its packaging as well as place recycling bins in its restaurants. 50% of Unilever’s top brands that are growing faster and be more profitable are those which put more emphasis on sustainability. Additionally, as electric vehicles are estimated to replace conventional by 2040, it seems that car manufacturers have big plans for the years to come. Honda announced that its plans for the European market are to offer, at least partially, models that will be electrified by 2022. Similarly, Volvo which released its first electric vehicle in 2019, vowed that 50% of its sales to come from electric cars in the near future.
Companies have to be aware that individuals want to be greener, but they expect companies to take the lead. Sustainability is a major concern for young people. The younger generation is the key segment for the conceptualization of green consumption as their actions are based on the idea of creating a greener world. They support and work with firms which have adopted green practices, and this is something that commercial environment all over the world cannot miss out.
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