What retailers need to know about conscious consumers

The rise of the conscious consumer: what it means for retailers

Conscious consumerism is on the rise, and it’s challenging traditional business models. Get to know what conscious consumers expect from your business.

Conscious consumerism is on the rise

56% of Europeans consider themselves conscious consumers and 67% of Europeans bought products that were better for the environment, despite a higher price tag¹. These consumers are aware of where they shop and the products they buy. They favour local and sustainable products that are environmentally friendly and green. They’re also concerned with animal welfare and buy cruelty-free products.

The pandemic has helped cement these socially conscious behaviours as people become aware of mindless consumption and seek to minimise it. They expect businesses to meet their expectations. When they do, consumers show their brand loyalty accordingly.

Who is the conscious consumer?

The conscious consumer chooses to consume ethically and buy from businesses that are green and follow sustainable practices. Whether it’s taking a recyclable bag to the supermarket, buying from the local farmer’s market or cycling around the city, they’re keen to create positive impacts globally too, not just locally.

According to research², millennials are more socially conscious than any other group. However, every age group rates sustainability and environmental factors as being important in their buying decisions².

Seeks to ‘consume mindfully’

Conscious consumers avoid ‘mindless consumption’ and seek out greener products with longevity.

Post-pandemic, consumers are more aware of how and where they’re spending their money and aim to reduce plastic waste inside their homes. They’re aware of global issues like minimum wages in poorer countries, fast fashion and its impact on landfills. They favour businesses that follow green practices because they value sustainability.

Show them your business follows sustainable practices, and you can charge a premium for your products.

FACT: 67% of socially conscious consumers in Europe are willing to pay more for sustainable brands that care for the environment¹.

Demands locally sourced products

The conscious consumer is sustainability-minded and will take extra time to check out where the product ingredients come from and how they’re processed before clicking the buy button. Make this information available online and at every step in the purchase cycle.

Conscious consumers love brands with a good backstory and businesses affiliated with social justice and causes.

Sustainability drives their buying decisions, so they prefer locally made, artisanal or sustainably made products over those that have a high carbon footprint.

Needs to do ‘the right thing’

Conscious consumers are driven by a need to make a positive impact in the world and environment and want to do ‘the right thing’. So they choose brands with values similar to their own and seek to build trust with businesses.

FACT: 84% of consumers rate brand trust highly when choosing a product².

But brand-loyal consumers will still research the brand’s products before opening their wallets. As a business, you need to ensure that you’re reinforcing their trust and your credibility at every step.

Mindful consumption driving ethical offerings

In recent years, farm to table restaurants, local food delivery services, and whole-animal cooking means food hasn’t travelled long distances and very little is thrown away.

Today’s businesses must evolve. There are many opportunities for ecommerce and traditional businesses to meet the demands of the conscious consumer.

Some ways are:

• Offer carbon footprint reduction fees (like the airlines)
• Recyclable electronics and packaging (for consumer electronics)
• Shorten your supply chain and source most or all of your inputs locally
• Apply for Fair Trade/3rd party certifications
• Add vegan-friendly and cruelty-free products
• Use raw materials that have minimal impact on the environment
• Encourage buyers to contribute to a social cause or charity at checkout or tell them how their purchase is impacting someone positively
• Promote refillable products and bags for greener options to replace plastic or one-time use materials
• Create products free from toxic materials and chemicals
• Reduce the amount of packaging used for products
• Use local logistics partners to cut down on delivery times and reduce your business’s carbon footprint

If you want to appeal to conscious consumers, incorporate sustainability into your products and processes. Be transparent in your dealings with consumers. Companies that ignore sustainability and the needs of conscious consumers risk getting caught out and losing both business and brand reputation.

How will e-commerce evolve in the next three to five years?