SHANGHAI – The future of sustainable consumption lies in the hands of young, socially and environmentally conscious consumers, according to a recent report.
Known as the “Aspirationals,” this group of empowered, young and urban shoppers make up nearly 2 billion – almost a third – of the world’s population, and are particularly prominent in Asia.
“Aspirational consumers love shopping, but they also want to be socially and environmentally responsible and they respond to brands that take initiatives in this direction,” according to the Aspirational Consumer Index 2014 conducted by GlobeScan and BBMG. The results are based on interviews with more than 20,000 consumers across 21 countries.
Asia’s emerging markets contain the largest population of aspirationals – 58 percent of Indians and 51 percent of Chinese come under the category. Indonesians comes in close behind at 46 percent.
According to the report, brands that deliver exceptional products and services, inspire personal relationships, support community initiatives and protect the environment are most likely to drive perceptions of responsibility.
Under this definition, Coca-Cola, Microsoft, Samsung, Tata, Unilever and Nestle emerge as the most responsible companies in the world, according to the report’s findings. Closer to home, Midea, Lenovo and Haier top China’s list, while Tata, Reliance and LIC emerge the winners in India.
Unlike their counterparts in developed countries, aspirationals from emerging markets are strongly motivated by wealth and materialism, and the negative environmental conditions in their countries that are increasingly threatening personal health. Almost all (95 percent) of aspirationals in the study said that they believed in the need to consume less to preserve the environment for future generations.
The report found that the nature of identity as intrinsically related to the collective nature of social circles to which an individual belongs in Asia drives this phenomenon, and provides ample opportunity for business to tap on to. To maintain “face” in Asia Pacific requires material status and wealth, a need that drives conspicuous consumption, and thus “visible branding.”
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The importance of peer identity and group norms is magnified among the aspirationals, and they respond strongly to brands that can “leverage individual actions into collective impacts… [and create] the modern equivalent of ‘brand loyalty’.” In fact, the study found that 53 percent of aspirationals indicated they would buy more sustainable products if it connected them to a community of peers with shared values.
This peer consciousness is behind the rising popularity of the sharing or “we” economy. Businesses such as Airbnb and Zipcar tap on the willingness of the aspirationals to share products, deriving the benefits of use while reducing its carbon footprint and financial costs.
The power of aspirationals lies not just in their love for shopping, but also their ability to influence others to do the same. About half of aspirationals in the report revealed that their friends and family often seek recommendations from them for goods and services.
Through their combined interest in wealth and sustainability, Aspirationals are redefining modern consumption and unlocking the market for sustainable products and services. As the world’s environmental problems continue to worsen, companies that can leverage on this consumer group will emerge as the winners in the long run.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email asia@dezshira.com or visit www.dezshira.com.
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