Green Consumption or Sustainable Lifestyles - Assignment Example

Green Consumption or Sustainable Lifestyles? Retail refers to the sale of goods and products to customers. Over the years there have been several changes in the retail trends. These retail trends are predicted to have a dramatic impact on the retail industry in the foreseeable future. Although the trends are from the point of view of the consumer, they have an impact on industries as well. Companies can gain advantage from these trends by changing their supply chains to cater to the demands of the customers. Making speech at the World Retail Congress in Barcelona, Sir Terry Leahy, chief executive of Tesco, highlighted seven key trends in the retail industry. These trends included a desire for more simplicity by the customers, increased demand for beauty and anti-aging products, globalization, increased awareness in consumers about how to acquire information, more attention to trust as well as less time consuming shopping. One of the main trends that Leahy highlighted was green consumerism (Supply Chain Digest, 2007). Consumers have increased awareness of their carbon print; as a result, they are seeking for products and goods that are more sustainable and energy-efficient. They are looking for retail markets that sell goods which play a part in countering the reducing the damage being done to the environment. In a study conducted about the design of future sustainable technologies in existing green households, the motivations and practices of the participants were analyzed. People could be motivated to manage their homes in order to reduce the harm that they incur on the environment. Their motivations ranged from caring for the planet to frugal minimization, as well as a wish to be unique (Woodruff et al., 2008). Moreover the choice of organic products depends not only on the knowledge of the customers but also on their lifestyle (Gracia et al., 2010). Consumers with healthy lifestyles are likely to be more active in the cause for green consumerism. Green consumption refers to the shifting of products and services towards lesser environmental impact. Today, there is increased evidence that there is rising demand for greener products and services. This can be supported by statistics predicted by the Natural Marketing Institute reports. According to these reports, it has been forecasted that the Lifestyles of Health and Sustainability (LOHAS) market, which is worth more than $200 billion, will double by 2010 and quadruple by 2015 (Dwigder, 2007). There are mane online retailers that have modified their supply chains and have entered the market for greener products and services. These online retailers do not necessarily offer green products; many of them make it easier for customers to navigate the market. The three main categories of online retailers and content sites include general online retailers, green online retailers and green directories. Green online retailers include those retailers that are committed to the green market and function primarily to serve customers who are seeking greener goods and services. Amongst these include Buy Green, Green Store, Natural Collection, VivaTerra and Green Feet. On the other hand, general online retailers are general retailers and merchandisers that have incorporated a green section into their current services and products, for instance, MSN and Amazon. Lastly, there are sites that have been set up that serve to provide customers directories, product search engines and shopping guides. Such sites include National Green Pages, Pristine Planet, EcoMall and Evolve Shopping. Michel Gelobter, Founder and EVP of Cooler, asserts that in the US this trend is still gaining impetus. The US has a consuming power of $10 trillion, according to a survey conducted in the 2007. Therefore the challenge for the continuation and the greater surge in popularity of green consumerism is not only to shift products towards greener products but also to convince mainstream manufacturers to take up the strategies for more sustainable production and development of eco-friendly products and services. Over the past few years, countries such as Japan and China have consistently used green advertising to promote its image for being eco-friendly after their falling reputation for being involved in production processes that harm the environment. However, although green advertising is used by manufactures in these countries since the past decade, it is still in its nascent stage. A content analysis of the newspapers from Japan, Thailand and China came to the conclusion that green ads can often be false and illusory. Many of the manufacturers in these countries used green ads to promote a green company reputation rather than actually concentrating on the environmental impact of their goods and services. This results in greenwashing. Greenwashing is referred to the practice of doing something that is actually deleterious to the environment; however an image is projected that the good or the product is actually environmentally-friendly. Thus, it is green advertising without environmental substance (May et al., 2007). Misleading labeling of products and advertising is one of the reasons why green consumerism lost impetus during the 1990s. One example was that of a famous discount retailer labeling its paper towels as green. However, it was discovered that the only thing green in the paper towels that was green was the interior of the roll that was made up of partly recyclable fibers; neither the paper towel, nor the plastic wrap was made up of natural materials. Therefore one of the issues regarding green consumerism is what constitutes as natural and green (Hull, 2006). British and Europeans have also responded to the green consumer retail trend. Retailers in these countries have been providing green products ever since the 1990s. This has been done primarily due to the widespread advertisement of organic products. This has contributed to meeting the demand for greener products and has solved the problem of availability. Supermarkets therefore have played an important role in the promotion of greener goods. For example, Wal-Mart’s recent introduction of organic foods has contributed significantly in the price range and availability of organic foods. However, despite the fact that supermarkets act as gatekeepers to the availability of commodities and channeling them to the consumers, they have a restricted range of specific organic products. Thus, Lockie et al. (2006) assert that there will always be a role for the selling of products from the farm directly to the consumer without involving intermediaries such as supermarkets. According to Tanya Ha (2007), being a green customer is no less than a shopping art. Green customers are like bargain hunters since they seek to outsmart the manufacturers who are bent on convincing the customers that they need a product that is deleterious to the environment or unnecessary. Customers are gaining more awareness about greener products and are able to look through the green wash. As a result, they have the ability to make smarter choices regarding green products and services. These choices are meant to not only benefit the health of the customer but also be friendly to the environment. The greener product is so-called since it may have required the usage of minimal resources, be more eco-friendly, is renewable or recyclable and have an easier and safe disposal. When a product is bought by a customer, the customer exhibits consumer behavior. The choices of the consumers mirror their values and ideologies. Manufacturers take notice of the buying patterns and preferences of consumers and aim to cater to the needs and wants of the customers. Buying green products exhibits the value and the importance the consumer places to the environment. As the consumer preferences are shifting more towards greener consumerism, the retailers are responding by making more greener products. This can be demonstrated by visiting a supermarket and observing the assortment of free-range eggs and organic products that have emerged over the past few years. According to the Retail World 89th Annual Report, Australians spent more than $400 million on disposable nappies, $172.8 million on disposable batteries and $11.6 million on rechargeable batteries in the year 2005. Progress towards green technology has been slow. Peattie and Crane assert that this is due to misconceptions in green marketing (2005). There are many types of misconceived green marketing including green selling, green spinning, and green harvesting. Therefore there needs to be changes in the market in order to remove the obstacles to green consumerism. One such measure could be the development of consumer policy. This can be done by empowering the customers and motivating them to adopt greener measures. Lifestyle changes can also be made for sustainable development to boot (Thøgersen, 2005). Reed (2010) reports that new emission measurements are indicative that green consumerism is failing. According to John Barrett, green consumerism has failed to reduce emissions. The data presented by Barrett and his colleagues during a talk in Seattle on the growth of UK greenhouse gas emissions from consumer goods and services did not support the promises that green consumerism offers. Green consumerism has less influence than people think. The data collected also concluded that gains in the mitigation of emotions in production processes has been overridden by the increases in emissions as people’s consumption increases and they demand greater wealth. Green buying must be considered in context of wider debates that surround environmental development that integrates other environmental actions in a holistic conceptualization of sustainable lifestyles (Gilg et al., 2005). Thus, in conclusion, green consumerism is a key current trend; however it requires changes in the market in order to make it more feasible. Reed (2010) observes that opinions about the way forward can differ from one person to another; the message in the meantime is that we cannot shop our way into the future. Reference List Dwigder, 2007. Greening Consumption. [Online] Available from: http://marketinggreen.wordpress.com/category/green-consumerism/ [Accessed 23 July 2010]. Ha, T., 2007. Greeniology: how to live well, be green and make a difference. 3rd ed. Victoria: Melbourne Univ. Publishing. Gilg, A., Barr, S. & Ford, N., 2005. Green consumption or sustainable lifestyles? Identifying the sustainable consumer. Futures, 37 (6), pp.482-504, Gracia, A., De Magistris, T. & Barreiro-Hurle, J., 2010. Why do we buy organic? Integrating knowledge, attitudes and concerns in a simultaneous equation model for Spanish consumers. [Online] Available from: http://www.centroportici.unina.it/EAAE_Capri/papers/Session4/Gracia_et_al.pdf [Accessed 23 July 2010]. Hull, R. B., 2006. Infinite nature. Chicago: University of Chicago Press. Lockie, S., Lyons, K. & Lawrence, G., 2006. Going organic: mobilizing networks for environmentally responsible food production. Oxfordshire: CABI. May, S. K., Cheney, G. and Roper, J., 2007. The debate over corporate social responsibility. New York (NY): Oxford University Press US. Peattie, K. & Crane, A., 2005. Green marketing: legend, myth, farce or prophesy? Qualitative Market Research: An International Journal, 8(4), pp.357-370. Reed, A., 2010. New Emissions Measurements Show "Green" Consumerism Failing. [Online] Available from: http://www.worldchanging.com/archives/011257.html [Accessed 23 July 2010]. Supply Chain Digest, 2007. Tesco’s CEO Identifies Key Retail Trends. [Online] Available from: http://www.scdigest.com/assets/newsViews/07-04-04-6.php?cid=999 [Accessed 23 July 2010]. Thøgersen, 2005. How May Consumer Policy Empower Consumers for Sustainable Lifestyles? Journal of Consumer Policy, 28(2), pp.143-177. Woodruff, A., Hasbrouck, J. & Augustin, S., 2008. A bright green perspective on sustainable choices. Conference on Human Factors in Computing Systems, Green Day, p. 313-322. Read More