Emerging market
A new consumer group, known as LOHAS (Lifestyles of Health and Sustainability), or Cultural Creatives, is emerging in the global market place. These consumers have strong concerns about human rights, fair trade, the environment, sustainable development and personal development. They want to integrate their values with the products and services they buy and use.
In the United States these consumers represent 32.3% of the adult US population, and recent research shows further market growth. The products and services they are interested in represent $227 billion in the marketplace (estimated $540 billion worldwide).
Research recently undertaken (by Moxie Design Group and TNS Research) in New Zealand showed that 26% of New Zealand respondents showed a similar demographic profile to this market.
The key characteristics of these consumers are:
- They will buy products and services from companies with values like their own
- They are willing to pay up to 20% more for sustainably made products
- They are marketing savvy, and will tend to buy products endorsed by word of mouth rather than by traditional advertising and promotion
This emerging market for sustainable goods and services is yet another incentive to move your business in a sustainable direction.
Some areas your business could build on in this market are:
- The anticipation of future consumer buying habits
- The ability to establish fiercely brand loyal consumers
- The opportunity to charge premium prices for sustainably produced goods and services.
Case studies
B_E_E products (B_E_E)
B_E_E has designed household cleaning products that are environmentally friendly. They are the only range of cleaning products in New Zealand to have achieved Environmental Choice accreditation.
The Northland Sustainable Tourism Project (Ministry for the Environment)
The Ministry for the Environment has helped Enterprise Northland and six Northland tourism businesses put in place a sustainable tourism project to improve their environmental performance.
Guides
The Green Retail Guide [PDF, 260 KB] (Waitakere City Council)
This guide is aimed at retailers who are interested in improving their environmental business practices. The guide covers the principles of environmental purchasing, marketing and management.
Other resources
Growth and Innovation Advisory Board Research Summary (Growth and Innovation Advisory Board)
This report summaries the findings of the Growth and Innovation Advisory Board's research on how to make growth more relevant to New Zealanders.
LOHAS Journal Online (Lifestyles of Health and Sustainability)
The LOHAS Journal Online, is a source for executive-level news and information about the rapidly growing, $230 billion Lifestyles of Health and Sustainability (LOHAS) marketplace in the US.
Our clean green image: what's it worth? (Ministry for the Environment)
This report summarises the findings of the "Valuing New Zealand's clean green image" report which aimed to quantify the extent to which particular New Zealand exports benefit from positive perceptions about our environment.
Think something should be added to Simply Sustainable? Send your suggestion to webmaster@mfe.govt.nz.
