A new research study by TÃœV SÃœD Asia Pacific on the attitudes of consumers and businesses toward green products and services, provides insights for businesses in Singapore.
The research study, called the TÃœV SÃœD Green Gauge 2010, was conducted in China, India and Singapore. It included an online survey of more than 2,600 consumers who are decision makers in the purchase of products and services in 3 sectors: home electronics, food and beverage, and clothing and footwear. The study also included telephone interviews with over 450 management-level employees in businesses that operate in the 3 sectors.
The key findings for Singapore show that:
Majority of consumers and businesses in Singapore are interested in and increasingly aware of green issues.
The results show that 94% of consumers and 91% of companies are somewhat or very interested in green issues. Climate change was cited as the most pressing global green issue. In addition, 91% of consumers and 71% of companies said that the awareness of green issues somewhat or substantially increased in the past 5 years, and 81% of consumers and 69% of companies said that green issues will become increasingly prominent in the next 5 years.
Consumers in Singapore are buying green products.
The results show that 81% of consumers purchased food and beverage (eg. organic food), 73% purchased home electronics (eg. energy efficient appliances), and 32% purchased clothes and footwear (eg. organic cotton clothing).
Consumers in Singapore are aware of green certifications.
The results show that 50% of consumers are aware of green certifications, compared to 43% of businesses.
Consumers in Singapore place higher importance on having green products tested by an independent organisation, as compared to businesses.
The results show that 42% of consumers place importance on having green products tested by an independent organisation, as compared to about 25% of businesses who say it is important.
Businesses in Singapore underestimate consumers’ willingness to pay more for green products and overestimate how much they are willing to pay.
The results show that 72% of Singapore consumers are willing to pay more for products certified as green, and are willing to pay an average of 11% more. On the other hand, businesses underestimate consumers’ willingness to pay more for green certifications and only expect 35% to pay more. Businesses also overestimate that consumers are willing to pay an average of 20% more.
The purchase decision by consumers in Singapore are still influenced by quality, health and safety, and price.
The results show that the top 3 influences on purchase decision for consumers are quality, health and safety, and price, followed by ingredients/ materials, general certifications/labeling, green certifications/labeling, and country of origin.
What Businesses Can Learn From The TÃœV SÃœD Green Gauge 2010
1) Start looking at how your business can provide green products and services because consumers are more aware of green issues and are buying green products. Green is in and not a fad.
2) Make sure your green product or service meets independent certified standards because consumers are aware of green certifications and place importance on independent certification. Avoid greenwashing.
3) Market your green product or service not just on “greenness” but emphasise on quality and benefits such as health and safety, and don’t overcharge. Green consumers are still consumers, they want value for money.
Source and images credit: TÃœV SÃœD Asia Pacific