It’s back to basics for many consumers. Goodbye excess; batten down the hatches.
While it’s certainly not news that high prices and economic fears are causing consumers to cut back, a new study from Cramer-Krasselt finds that behaviors are shifting in ways few marketers may have expected.
As expected, in this downturn, consumers are pulling back and shopping less. They’re trading down, visiting Wal-Mart rather than Nordstrom’s. They’re substituting lower priced for higher priced items. But, in case you feared the economic situation would derail the green movement, think again.
… the current downturn has consumers building on trends that were already gathering momentum. Take the simplicity movement. While marketers such as Circuit City, Best Buy and Phillips have been tapping into consumers’ desire to streamline their possessions for several years now, the sagging economy is now providing an incentive to go one step further, with more people selling things on such sites as Craigslist and eBay. Ditto the move toward “locavorism,” once favored by environmentalists, and now embraced by anyone who may be looking to save on gas.
For companies and products that offer green, money-saving solutions, this is welcome news, but not unexpected. Any energy saving device from cars to light bulbs is greeted enthusiastically these days whether or not they help the environment.
For those companies offering higher priced, more environmentally friendly or healthier products, a recession though might give management pause. The economy may not necessarily be a problem this time… rather it may be more of an opportunity than previously thought.
As I discussed in an earlier post, high energy prices lead to higher shipping prices which support locally produced goods by lowering the price differential. This may tend to keep not only deep green consumers but also those further down in the LOHAS segments shopping.
For green companies focused on the reusable market, this economic climate is a plus. While sometimes downturns are accompanied by a rush to cheaper goods, the changing belief systems inherent in this one will tend to lead toward longer-lasting, well made goods…in other words, those that last, as consumers eschew the “throw-away” society.
And, of course, the scary publicity out of China, in terms of environmental, health and quality favors home grown goods. All of which could make this a boom time for green entrepreneurs.
Photo Credit: annia316 at Flickr Under Creative Commons License
Related Posts About Selling Green In A Recession:
Green Consumers Pull Back – Now What? Recession Strategies For Eco Businesses
Recession Proof Your Green Business
Is Recession Good for the Environment?
Why are People called CONSUMERS?
My Farm Grows From San Francisco Backyards
We need computer designed and computer controlled 21st Century inter-city electric rail passenger and freight shuttles. The ‘green’ advantage is perhaps most obvious, less carbon based fuel for transport. The 24/7 aspect of computer control is less obvious,but not less important. Containerized shipping might be incorporated, giving lower flat freight rates in low traffic periods – cheaper shipping is a less applauded advantage. Fewer workers on an automated system is an advantage, more people will be free for more interesting occupations – ending drudgery for many-an advantage. Greening and economies seem to go hand in hand with computerizing and automating. We must watch corporations diligently to prevent them from automating systems that produce environmental mayhem, the one caveat the Chinese missed, and perhaps their undoing in the end!