Most consumers are not willing to pay more for sustainable products, says a recent report, stating that only 41 per cent of consumers globally, which is a stark drop from 57 per cent in 2020, say that they are willing to pay more for a product they believe to be sustainable.
According to the second edition of Capgemini Research Institute’s annual consumer trends report, ‘What Matters to Today’s Consumer,’ which reveals the impact of an increased cost-of-living on consumer spending habits and preferences, 61 per cent of consumers are concerned about their financial situations, with Millennials (66 per cent) and Gen X (64 per cent) being the most worried, and Boomer (55 per cent) the least.
Purchasing behaviors are also changing.
From its survey of 11,300 consumers in 11 countries, the report found that nearly three-quarters (73 per cent) of consumers are making fewer impulse purchases, while 69 per cent are cutting back on non-essential expenses such as electronics, toys, and dining out, as well as delaying the purchase of luxury items.
Saving money is top of end for many people, with 64 per cent of consumers buying products from hypermarkets and discount stores and 65 per cent buying cheaper private-label or low-cost brands.
“There’s an opportunity for retail businesses to dramatically reimagine their operational strategy in order to weather this storm and pass on price benefits to consumers. By identifying new revenue streams, creating new markets, transforming operations, and optimizing costs, businesses can succeed without compromising on sustainability or overall customer experience,” said Lindsey Mazza, Global Retail Lead, Capgemini Group. “Harnessing technology for intelligent demand planning, inventory management and automated operations can not only help reduce costs and maintain margins, but also yield sustainability benefits for organizations.”
Furthermore, 67 per cent of consumers say that brands and retailers should offer lower prices for the products their families require.