Hardly a week goes by without a beauty brand or retailer – major and niche – releasing details of their social or environmental initiatives.
Australians are fully supportive of such commitments, reveals new research from the Australian Retailers Association (ARA) in collaboration with the Queensland University of Technology.
A hefty 69 per cent of consumers surveyed said they believe that the purpose of a retail company in general is to respond better to social and environmental issues.
The survey also confirmed that consumers are willing to pay more for products and services whose values dovetail with their own. Over 24 per cent were willing to pay more than 5 per cent and 13 per cent upped the ante to 10 per cent.
Retailers in the food and grocery sectors scored the highest approval ratings from Aussie consumers, followed by furniture and homewares, books and magazines and pharmaceuticals and cosmetics.
There’s a clear divide between generations, though. Younger consumers are more knowledgeable about a retailer or brand’s corporate strategies. While older consumers are more focused on health and safety issues and regulation compliance.
Respondents also believe that retailers and brands should prioritise human rights issues and sustainability ahead of political lobbying and adding value for shareholders and investors.
Paul Zahra, CEO of the ARA, said the research showed how important it is for retailers and brands to lead in social and environmental issues.
“Consumers are becoming more values driven when it comes to their shopping, and they will actively pursue brands that resonate most strongly with the social and environmental issues that are important to them. Consumers will even pay more for products and services if a retailer’s values align with theirs.”
Zahra also underscores the need for honesty and transparency when it comes to sustainability claims.
A view confirmed by a recent survey conducted in the UK and the US by Provenance, the international sustainability marketing provider.
A huge 91 per cent of Brits and 89 per cent of American shoppers surveyed said that sustainability and ethics were important considerations when buying beauty and wellness products. On the flip side, 79 per cent said they were sceptical about the sustainability claims of beauty brands.
The majority of beauty shoppers in both the British and American markets said they considered independent verifiers such as EcoCert as more trustworthy.
Ninety per cent of those surveyed revealed that they check sustainability information when buying a beauty product. Over half – 55 per cent – check on-pack information, while 37 per cent look at the brand’s website and 33 per cent seek out information in-store.
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