Indian customers do not buy sustainability.
They buy convenience and savings.
We’ve spoken at length to a large number of customers about sustainability. While this is usually in relation to the category we are working on, certain common themes emerge from hundreds of conversations with customers across categories.
Challenges: Sustainability messages are not cutting through to Indian customers
The overall feeling is ‘What is in it for me?’ or ‘It’s the companies and factories that pollute, how will buying green products benefit anyone, especially me?’
- Affordability: Premium on sustainable products is a major barrier for most customers in India. While they say they would pay a small premium for green products, we got the sense that most customers in India will not pay any premium and in fact need financial incentives to adopt sustainable products.
- Awareness: Across categories, many customers are not aware of the impact of their products and practices on the environment. The general view is that it is the factories and unsanitary practices of others that causes pollution. They also may not have heard of sustainable products, or they’re unsure about their benefits.
- Habit: Traditional methods and products are familiar and comfortable. Convincing people to switch gears and embrace new technologies requires more than just good intentions. There is a lot of training, support, and clear demonstrations of benefits needed for the transition.
Motivators: What can motivate the customers to adopt sustainable products and practices
However, there are few customer motivations that provide an opening for brands to work on.
- Immediate benefit: Indian practices have traditionally promoted frugality in use of resources. This could be by reusing and recycling or in controlling the quantity used. Today, this deep-seated desire for conserving resources translated into the promise of saving costs by adopting sustainable practices. As costs of utilities such as electricity, water, gas have spiraled up, customers are clearly feeling the pinch of consumption. They are willing to pay a small premium for sustainable products and practices, as the eventual cost savings are big motivators
- Better future: Most customers are aware of the strain on the environment caused by humans. They may see it as changing climatic conditions, variations in agricultural outputs or buildings replacing trees in their surroundings. They are experiencing the adverse impacts of environmental changes firsthand and are opening up to the idea of adopting products that damage the environment less. This is especially true in the younger set of customers.
- Quality & convenience: There is a perception that green products compromise on strength and durability as they compromise on addition of necessary ‘chemicals’. Brands need to assure customers that green products can function just as well as their traditional counterparts. In fact, using green products may add to their convenience without compromising on quality.
More than technology and innovation, adoption of sustainable products and practices needs understanding of people’s concerns and motivations. While traditionally the Indian society has promoted reuse and recycle, it will take some time and specific incentives for the customers to accept the marketing of ‘sustainable products’.