2023-09-13 12:16:31
HV & EY’s nationwide sustainability compass is systematically examining sustainability as a transformation factor in the industry for the second time and shedding light on the consumer and retail side.
Vienna (OTS) – The current multiple crises – the war in Ukraine, inflation, a lack of personnel – and the resulting stagflation for the economy as well as the decline in purchasing power for consumers have also left their mark on the issue of sustainability. Environmentally friendly shopping is still important to consumers, but the willingness to spend more money or go without things has decreased significantly compared to 2021. This is shown in the brand new, second edition of the Sustainable Commerce Report by the trade association and EY in collaboration with Mindtake Research.
The key findings of the Sustainable Commerce Report 2023:
- When buying food, the most important things are a good price-performance ratio and high product quality;
- Top sustainability topics: avoiding food waste, separating waste, using resources sparingly and animal welfare;
- One in four people have already taken advantage of the repair bonus;
- The most common reasons once morest acting sustainably are general inflation and the higher price of sustainable products;
- Crises have reduced retailers’ ability to invest in sustainability;
- Unclear customer wishes and too little capital act as hurdles for sustainability on the part of retail companies.
In a large-scale consumer study with over 1,000 respondents and a retailer survey among 107 members of the retail association, the attitudes of Austrian consumers in the area of sustainability and the status quo in the retail industry were comprehensively examined.
From the customer’s perspective, a good price/performance ratio when purchasing is more important than sustainability
Whether when buying food, clothing, furniture or electrical appliances, consumers are currently paying particular attention to a good price-performance ratio (over 80%) and high product quality (over 70%). When it comes to food, emphasis is also placed on regionality (69%), animal welfare (68%) and the avoidance of questionable ingredients (68%). This means that the priorities of Austrians have hardly changed compared to the last survey in 2021.
However, there is a clear difference in the importance of a generally low price for food and clothing: while this was only important for half of Austrians in 2021, this year it is an essential purchasing criterion for around two thirds of food and for just under clothing 60%. Almost half of those surveyed (47%) explicitly state that they cannot currently afford organic products due to general inflation.
“When buying furniture or electrical appliances, price sensitivity is somewhat lower, so longer-term investments are also made dependent on other criteria or were simply purchased as part of cocooning during the pandemic. But saving is currently the order of the day, especially when it comes to everyday products.”so Rainer Willmanaging director of the trade association.
According to the survey, sustainability aspects such as environmentally friendly packaging or fair working and production conditions of regional producers are of medium importance for consumers, while fair working conditions in producing (third) countries play a minor role when purchasing.
“In the current economic environment with high inflation and falling purchasing power, it is remarkable that sustainability is so important in people’s minds and that little has changed compared to 2021. Nevertheless, the numbers clearly show: clearer incentives need to be created, so that sustainability remains affordable for the masses.”summarizes Martin Ungerhead of the consumer goods and trading sector at EY Austria, summarized the current market situation.
Half of consumers are willing to spend more on regional and organic products
Those who can afford it are willing to pay a little more money for sustainability. Around half of consumers are prepared to dig deeper into their wallets for organic products, regional products or fairly traded goods. Regionality is particularly important when purchasing – 52% are prepared to pay more for products from the region, a quarter up to 5 percent more and almost a fifth even up to 10% more. A similar picture emerges with organic products. For fair trade products, 43% of those surveyed would spend more money, 15% up to 10 percent of the purchase price.
“From the consumer’s perspective, regionality represents a whole range of aspects, be it freshness, short delivery routes, knowledge of the origin and, above all, promotion of the local economy. Retailers have reacted to this and adapted their product ranges, and weekly markets and farm shops are also enjoying increasing popularity once more.”added Nikolaus KoechelhuberPartner at EY-Parthenon.
Sustainability in everyday life: Big differences between young and old
The relevance of sustainable action has now become part of most people’s everyday lives. Many are already taking measures to protect the environment and combat the waste of resources.
Avoiding food waste (80%), avoiding and separating waste (78%), economical use of resources such as electricity, water and heating (72%) and animal welfare (72%; 2021: 77%) are the areas that consumers focus on people pay the most attention in their daily lives.
Half say they pay particular attention to their carbon footprint and avoid unnecessary car and air travel (50%, 2021: 51%). Over 40% each state that they do not buy from non-European online shops and primarily from brands or retailers that act sustainably. 20% of those surveyed avoid fish and meat.
There are significant differences between the generations: While 60-69 year olds place an above-average emphasis on organic products, resource conservation, green electricity, animal welfare and not flying, 18-29 year olds rely heavily on vegetarian or vegan diets – a nutritional trend that will happen in 2023, by the way has increased significantly overall (vegetarian/vegan +25%/+56%).
The inner weaker person: Willingness for sustainable consumption shows limits
However, the desire for sustainable purchasing also presents consumers with challenges. After the limited willingness to pay, convenience plays a particularly important role: the willingness to accept personal sacrifices for sustainability has decreased significantly compared to 2021. A third of those surveyed (37%) would not like to do without comfort such as a car, air travel or the tumble dryer. The younger generation in particular finds it particularly difficult to give up fast fashion or air travel. Two thirds of Austrians (65%) would accept an empty shelf in the supermarket in the interests of sustainability in order to prevent food waste. In 2021 it was almost three quarters (74%).
Accountability and incentive systems
34% believe that sustained efforts by individuals and at local level have no impact anyway. Producers and suppliers as well as politicians are seen as the most responsible for sustainability. “Consumers cannot decide everything themselves; the general conditions often stand in the way of more sustainable consumption. Business and the public sector have important leverage for sustainable products and services. We are all called upon to take the necessary steps so that people can consume more sustainably.”is Will convinced.
In order to encourage more people to consume sustainably, reward systems might play a central role: Two thirds of consumers can imagine taking part in a sustainability bonus program – in which participants collect points, for example for purchasing sustainable products or for a low electricity bill participate. Everyday actions can become more conscious through a reward system and the points system gives you immediate positive reinforcement. A bonus program provides additional incentives for environmentally friendly behavior.
The possibility of exchanging bonus points for vouchers or discounts is interesting for three quarters of those surveyed. A quarter would share the eco-score with their social media community and thus encourage each other.
Repair bonus: Political measure in check
Through the repair bonus, up to 50% of the repair costs are covered by the state as a subsidy. This offer is well received in Austria: almost a fifth said they had already used the repair bonus once, and 6% had even used it several times. 60% of Austrians know regarding the repair bonus but have not yet claimed it. Only 15% did not know regarding the repair bonus at the time of the survey.
Dealer survey: Crises have reduced willingness to invest in sustainability
Even though the topic of sustainability is now very important in many companies, recent developments such as the energy crisis and the war in Ukraine have ensured that investment opportunities in sustainable technologies or projects have decreased: almost a third of retailers (30%) have theirs have to reduce investments in this regard, at least half have not had to make any savings, 19% have even increased their investments in this regard.
“The numerous challenges of the last few months, such as record inflation, war in Ukraine, supply chain disruptions and skyrocketing energy prices, have led many companies to postpone investments in order to protect their profitability. However, sustainability investments should not be put off in order to meet changing consumer behavior.”so Martin Unger.
The full press release and photos from today’s press conference can be found here.
Questions & Contact:
Trade Association
Mag. Gerald Kühberger, MA
Press spokesman
+43 (01) 406 22 36 – 77
gerald.kuehberger@handelsverband.at
www.handelsverband.at
Mag. Manuel Friedl
Senior Communications Manager
+43 (01) 406 22 36 – 80
manuel.friedl@handelsverband.at
www.handelsverband.at
1694607675
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