JeremyHollow

50 %
50 %
Information about JeremyHollow
Education

Published on February 20, 2008

Author: Doride

Source: authorstream.com

The ‘greening’ of the non-food consumer goods market in the UK:  The ‘greening’ of the non-food consumer goods market in the UK An overview of the market, trends and opportunities November, 2007 Apollo 8: the dawn of the ethical movement? :  Slide 2 Apollo 8: the dawn of the ethical movement? Goodnight to the traditional light bulb?:  Slide 3 Goodnight to the traditional light bulb? What is ‘ethical consumerism’?:  Slide 4 What is ‘ethical consumerism’? Ethical consumption Is the consumption of goods produced without undue harm to humans, animals or the natural environment ‘Green’, ‘sustainable’ or ‘environmentally friendly’ goods. Consideration for impact on people producing goods Goods that care for animal welfare in their production Certified standards include: recycled, organic, energy efficient, and carbon labelling Certified standards include: Fair Trade Certified standards have been proposed: EU, June 2006 How has this momentum grown? :  Slide 5 NGOs and Charity groups campaign to attract media/ public attention, shame corporations, and lobby government Government pressure ‘seen to be responding’ Retail push on supply chain brand benefits and profit Consumer demand Guilt / social pressure How has this momentum grown? In the mainstream?:  In the mainstream? Slide 6 “10 years to Save the Planet” “Change for Good is Sexy” “We’re on the Erode to Hell” Large corporations: no longer just paying lip-service:  Slide 7 Large corporations: no longer just paying lip-service ‘Plan A’: spending €288m on becoming carbon neutral by 2012. Carbon labels to be placed on 30 of its own brand products. Pilot scheme asking 30 manufacturers to report emissions - will be widened to 68,000. First supermarket to launch entirely organic cosmetics range. Set to release organic ‘skin sense’ range. Announced plans to be carbon neutral by 2010. Only buys wood sourced from sustainably managed forests. Contents:  Slide 8 Contents ‘Ethical consumerism’ has hit the mainstream Future trends in the green market: what is driving growth ‘Greening’ the value chain Slide9:  Slide 9 ‘Ethical consumerism’ has hit the mainstream Future trends in the green market: what is driving growth ‘Greening’ the value chain What is driving ethical consumerism?:  Slide 10 What is driving ethical consumerism? Consumption of natural and organic products for health reasons. Using purchasing power to express social/political concerns: positive buying. 2 main trends Ethical consumption has “become more sophisticated, more widespread and consequently more influential than ever before”. Growth in the ethical consumption market :  Slide 11 Growth in the ethical consumption market Based on 2003-2005 growth rates Based on 1999-2005 growth rates Based on 2004-2005 growth rates €123bn €88bn €71bn Ethical retail sector = online retail product spending by Britons in 2006:  Slide 12 €42.2 billion: Total spending on ethical goods and services 2005 €15.4 billion : spent in 2005 on ‘ethical retail’. €41.7m fashion €2.6bn n-f-g €3bn furniture Ethical retail sector = online retail product spending by Britons in 2006 A market size Slide13:  Slide 13 ‘Ethical consumerism’ has hit the mainstream Future trends in the green market: what is driving growth ‘Greening’ the value chain Growth drivers :  Slide 14 Growth drivers Government pressure ‘seen to be responding’ Retail push on supply chain brand benefits and profit Consumer demand Guilt / social pressure Consumer attitudes indicate strong growth potential:  Slide 15 Consumer attitudes indicate strong growth potential Certain segments of the UK population actively seek green goods. Many feel limited in their choice of goods: they would buy more if they had more confidence in labelling and there was wider availability of green goods. Government and supply chain pressure will impact attitudes: developing more green consumers. Consumer demand Guilt / social pressure How do UK consumer’s feel about being green?:  Slide 16 37% of UK consumers are currently resistant to green products I am “too busy to care”. 20% of the population are like me: apathetic. We are most likely to shop at Asda/ Iceland I have “green overload”, 17% of people are like me. We tend to be cynical and shop at discount outlets 63% of UK consumers are open to green products How do UK consumer’s feel about being green? I am “confused but willing”, like 23% of people. We tend to shop at Asda, Iceland and Waitrose. I am “keen to be green”, like 24% of the UK population. We tend to shop at: Waitrose, M&S and the Co-op, but also Sainsbury and Tesco I am “greener than thou”, 16% of people are like me. We are especially likely to be M&S and Co-op shoppers. What does this mean for the current market? :  Slide 17 What does this mean for the current market? The current market is dominated by ‘greener than thou’ and ‘keen to be green’ groups. These groups have above average representation of AB consumers aged 55 to 64. Producers of goods with these consumers “need to be sure that both the products and services they offer, and the way they conduct their business, take into account these issues as much as possible”. “keen to be green” need assurance that our actions will have an impact. “greener than thou” need assurance, but we are also price conscious. Is consumer confusion limiting the market?:  Slide 18 Is consumer confusion limiting the market? Labelling is vital to communicating commitment to environmental standards to consumers. Current labelling is leading to confusion as no single label covers all ‘green’ areas. “In their rush to be seen to be green, manufacturers and retailers have leapt in without thinking about whether even their simplest labels are meaningful to consumers.” (Lucy Yates, National Consumer Council). “Shoppers say they are bombarded with issues from a variety of sources and that they need clear and simple messages.” (Joanne Denney-Finch, IDG). Comparative labels – clearing confusion?:  Slide 19 Comparative labels – clearing confusion? European flower eco-label Products must sign a ‘reduce or lose’ clause. 120+ companies have approached the Trust, including: Kimberly-Clark and Cadbury Schweppes. Carbon-label Energy efficiency label Comparative rating showing products relative energy consumption. Awarded to the good with the lowest environmental impact in a product range. Significant potential for market growth:  Slide 20 Significant potential for market growth Sales will grow as ethical goods become more widely available and more clearly labelled: 63% of consumers would buy more green products if available. The market will also expand with increased government and supplier pressure: This may lead to the other 37% becoming green consumers. Government initiatives will further expand the market :  Slide 21 Government initiatives will further expand the market Positively influence consumer behaviour Stimulate the creation of green goods Government pressure ‘seen to be responding’ Government initiatives:  Slide 22 Government initiatives 1) Positively influencing consumer behaviour Initiatives underway: ‘Securing the Future: delivering a UK sustainable development strategy’. This is pivotal in determining how the ‘confused but willing’ group will polarise. 2) Stimulating the creation of green goods Consumers would purchase more ethical products if they were available: nearly half of all consumers buy from firms they view as unethical as they do not think there are any alternatives. Initiatives underway: Sustainable Consumption and Production Market Transformation Programme Waste and Resources Action Programme Waste Electrical and Electronic Equipment The impact of supply chain pressure:  Slide 23 The impact of supply chain pressure Companies increasingly feel pressure to produce greener goods. Retail initiatives impact consumer attitudes. Government pressure ‘seen to be responding’ Pressure on companies to make goods ‘greener’:  Slide 24 Pressure on companies to make goods ‘greener’ Companies are increasingly signing up to ‘greener’ environmental standards CSR Companies see climate change as the primary issue likely to impact upon their corporate reputation (Carbon Trust, 2007) Impact of negative publicity and boycotts on brand value Consumer pressure “Companies have begun competing with each other to demonstrate to consumers their commitment to the environment” Government pressure Availability of alternatives International standards and regulations The impact of retail initiatives on consumer attitudes :  Slide 25 The impact of retail initiatives on consumer attitudes Asda and Iceland have a high proportion of ‘confused but willing’ and ‘too busy to care’ consumers, so: “any steps [these supermarkets take] to educate their customers could have a significant impact” on their attitudes. Slide26:  Slide 26 ‘Ethical consumerism’ has hit the mainstream Future trends in the green market: what is driving growth ‘Greening’ the value chain What makes a green product?:  Slide 27 What makes a green product? There are green standards at every stage of a product’s life cycle: Design Manufacturing Transportation Packaging Disposal Major retail players have pushed measures to becoming green all the way down their supply chain. Designing a green product: using green materials:  Choice of materials ‘Natural’: producing a good with ‘less artificial’ than usual materials. Slide 28 Designing a green product: using green materials Manufacturing a green product:  Slide 29 Manufacturing a green product A good might be considered green by virtue of the: energy the factory is powered by factory’s treatment of waste chemicals used in the production process labour rights and standards in the factory good maintenance of machinery to ensure efficiency Labour laws, and toxic leaks in third world countries do receive relatively high press reportage and can be damaging to a company’s reputation. Revealed: Topshop clothes made with ‘slave labour’ Top fashion brands accused over failure to ensure living wage No secrets:  No secrets Slide 30 “Revealed: Topshop clothes made with ‘slave labour’” “Top fashion brands accused over failure to ensure living wage” Transporting and packaging a green product :  Slide 31 Transporting and packaging a green product Environmental impact of transporting goods receives high media coverage. Packaging has become an important selling point for products. Green story: Lombok :  Slide 32 Green story: Lombok In 2006 Lombok was listed for the third year running in The Sunday Times Fast Track 100. Lombok believe their ‘eco side’ is a unique selling point. Significant consumer demand. Supply a real concern to the market. Green story: Non-food groceries – M&S:  Slide 33 Green story: Non-food groceries – M&S Marks and Spencer’s Plan A: 288m to be spent on becoming carbon neutral by 2012 Sourcing more clothing and food from Fair Trade suppliers. One industry expert calculates that it would have to produce €1.44 billion in extra revenues. Green story: mainstream organic cosmetics :  Slide 34 Green story: mainstream organic cosmetics Considerable growth in the number of organic beauty products reaching the non-food grocery market. These products appeal to both health-benefits and environmental trends. Boots Botanics and Ingredients shampoos among the first goods to display the Carbon Trust's new logo. Green story: organic cotton on the high street:  Slide 35 Green story: organic cotton on the high street “Ethical clothing is likely to be the next important high street trend” J. Sheperdson, former Director, TopShop Green story: ethical giftware, a potential gap?:  Slide 36 Green story: ethical giftware, a potential gap? The mainstream ethical gift market is underdeveloped. John Lewis would like to provide ethical gifts. The importance of packaging. Conclusions :  Slide 37 Conclusions Demand for green goods is significant – conservative estimate of €71bn. Major players have taken significant action to address the concerns of the ‘green market’, despite ongoing lack of definition. Demand will continue to be driven by the interaction between: Consumer pressure. Government policy. The influence of large suppliers. This pressure is set to increase driving further growth. Questions?:  Questions? Slide 38 Prepared by FreshMinds:  Prepared by FreshMinds November, 2007

Add a comment

Related presentations

Related pages

Jeremy Hollow | LinkedIn

Jeremy Hollow is the founder of Listen + Learn Research, a market research agency that inspires organisations to be more successful by listening to ...
Read more

Jeremy Hollow | Facebook

Jeremy Hollow is on Facebook. Join Facebook to connect with Jeremy Hollow and others you may know. Facebook gives people the power to share and makes the...
Read more

Jeremy Hollow | Digital Marketing Blog | Econsultancy

Posts by Jeremy Hollow from Econsultancy's digital marketing blog.
Read more

Jeremy Hollow - Google+

Jeremy Hollow - Listen & Learn Research - Claygate - Cardiff Business School
Read more

American Hollow - Facebook

American Hollow. 3,006 likes · 17 talking about this. This page is for fans of the Documentary "American Hollow". This is not an official page ...
Read more

Jeremy Hollow - Google+

Jeremy Hollow. 16,184 views. About Posts Photos Videos. Stream. Jeremy hasn't shared anything with you. People are more likely to share with you if you add ...
Read more

Jeremy Hollowell Stats, News, Videos, Highlights, Pictures ...

Get the latest news, stats, videos, highlights and more about Georgia State Panthers Jeremy Hollowell on ESPN.com.
Read more

Jeremy at Hollow - YouTube

Jeremy at Hollow husqvarnarider. Subscribe Subscribed Unsubscribe 15 15. Loading... Loading... Working... Add to. Want to watch this again ...
Read more

Jeremy Hollowell News, Stats, Photos - SB Nation

The two most rumored players to be leaving this team in the off-season have made it so merely a few hours apart. Now Jeremy Hollowell has announced he will ...
Read more