According to the latest data released by several research institutions, "sustainability" continues to be one of the hot consumer topics in the United States and affects consumer purchasing behavior. In addition, the market share of sustainable products in the United States is rising, and many brands are using this as a marketing theme. "Sustainability" becomes a consumer hotspot, bringing about changes in shopping behavior According to a recent survey of more than 1,000 U.S. consumers by supply chain technology company BlueYonder, nearly half (48%) of respondents said their interest in sustainable products has increased over the past year. Sustainability is influencing Americans’ purchasing behavior and brand loyalty, especially in certain categories. The survey shows that when buying environmentally friendly products, American consumers are willing to sacrifice some of their shopping experience, including paying higher fees and delayed delivery. 60% of people said they are willing to pay higher fees, and a 5% premium is the upper limit of the premium most people are willing to pay, but 4% are willing to pay a 20% premium. However, as inflation affects purchasing power, most consumers still consider price as the primary factor in purchasing sustainable goods. In terms of categories, American consumers are most willing to pay high prices for environmentally friendly products that are closely related to life, such as clothing (30%) and cleaning products (27%). In addition, 78% of respondents are willing to wait for up to a week for delayed delivery to support environmentally friendly transportation. For home furniture and appliances, and consumer electronics, most consumers said they are willing to accept second-hand goods. The categories where Americans are most likely to change their brand loyalty due to sustainability include home products (65%), food (57%), and beauty and health (49%). The market share of related products has increased and they can continue to become a hot marketing topic According to Circana’s latest report, despite high inflation, sustainably marketed products have taken more market share in 2022, now accounting for 17.3% of purchases, up 0.3% year-on-year. The category is expected to grow at a five-year CAGR of 9.48%, almost double that of other traditional goods, which are growing at 4.98%. In addition, the price premium for sustainable products remains high, currently 27.6% compared to conventional goods. Although the premium is beginning to decline, part of the decline last year was due to price increases for conventional brands after they beat inflation. However, some lower-priced conventional products have also added sustainable features. The report points out that more and more brands are using sustainability as marketing content, including some large traditional brands. However, consumers' trust in brand sustainable marketing is still low, so it may be difficult to establish sustainable brand awareness in the minds of American consumers. The survey shows that more than half of respondents (56%) do not trust brands' sustainability claims related to their manufacturing, supply chain or recycling/waste disposal. For consumers, the opinions of real consumers are more credible. For young people, social media has the greatest influence on their sustainable shopping. Therefore, brands can use social media as a channel to market the sustainability of their brands through UGC content. In addition, under high inflation, the consumption willingness of American consumers has also changed significantly, and they tend to buy second-hand goods. Brands also need to pay attention to changes in consumer demand in a timely manner. Editor✎ Ashley/ Disclaimer: This article is copyrighted and may not be reproduced without permission. |
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