Sustainability has increasingly become a very important factor in consumer decision making, affecting their buying behavior, post-COVID. Minimalism, Responsible Consumption and Conscious Buying have become widely accepted phenomenons across the globe. Consumers are increasingly spending more time in educating themselves about ethical practices, sustainable materials and processes, responsible behaviors, etc. They are ready to invest in a better future and are willing to put in the hard work - and also the money!
But while consumers want to contribute to a better future by being better buyers, there’s also a constant scrutiny they go through when making any purchase decision. They often feel the burden of being a certain kind of consumer for fear they might be judged if they don’t fit the bill. However, has anyone ever wondered what consumers go through when making any purchase decision? What factors do they take into consideration, given how each consumer is a unique individual? Especially when it comes to a Luxury purchase that always comes with a heavy “bill” (pun intended!).
Let’s take a look at both sides of this coin.
The Luxury Industry has traditionally been associated with exclusivity and indulgence. But a growing number of consumers are now seeking out luxury products that are produced sustainably and have minimal negative impact on the environment and society. They are willing to invest in Sustainable Luxury as a means to showcase their commitment towards ethical and responsible consumption. Because these sustainable products are produced using eco-friendly materials and processes, they cause comparatively lesser harm to the society and environment. It also helps reduce the overall impact of consumption on the environment.
Inherently, Luxury brands are considered Sustainable in the sense that they produce in relatively much smaller quantities, waste lesser resources, promote artisans and provide longevity of products because of the high quality of materials used. This makes the consumers less guilty about indulging in Luxury products. Furthermore, when consumers are aware of sustainability initiatives of these brands, they are willing to support them even more as their values seem to align.
There’s a new class of luxury buyers that have a very interesting take on the topic - The Young Luxury Consumer. They look at sustainability as an Innovation, especially when it comes to Luxury. The desire to adapt to the latest technology or eco-innovation is extremely high in this class of consumers. Their curiosity and understanding of the novelty and rarity of these sustainable materials is what motivates them to invest in such purchases- even at a premium! Along with this, these young consumers are constantly looking for ways to reduce their impact on the environment. Thus ideals like responsible business practices and humanitarian policies play an important part in consumption decisions.
On the other hand, consumers also have very compelling arguments as to why they might hesitate before making such investments. And sometimes, it can be as basic as - Cost.
There’s no doubt that Sustainable products (whether Luxury or otherwise) can be more expensive compared to their counterparts. Higher than usual retail prices for such products might stop a consumer with lower income from making the purchase- even if the intention does exist. Some consumers also consider the Economic Rationale of their purchase. They’re looking for justification of prices so they can make an informed decision. Hence, it might be a good idea for businesses to be transparent with their audiences and educate them about their sustainable practices.
Another very important factor for consumers is Aesthetics. Sustainable Luxury products are often viewed as “less exclusive” or “less desirable” than traditional luxury. Sustainable Luxury Goods tend to have minimalistic and understated aesthetics which might not appeal to everyone, specially the New Luxury Consumer or the younger ones.
Furthermore, there might be an Attitude-Behavior Gap in the market where intentions and beliefs don’t always turn into action. But there’s something to be said about the role of corporates and businesses in fueling this Gap. Consumers these days, especially when making a huge investment, like to know where and what they are investing in. Misleading practices like Greenwashing and Green Marketing are so prevalent in the business world that you could hardly blame a consumer for lacking trust. Instead, as responsible businesses, brands can start being more transparent with their consumers. Educate them about the social and environmental practices of the business so that they know the product they are investing in is truly ethical and responsible.
So, while the ultimate decision to make a purchase lies with the consumer, brands can help make the consideration process easier. Consumer Purchase Decision is based on individual values, beliefs, priorities and most importantly- budgets. As the Sustainable Luxury industry continues to grow and evolve, it is important for Luxury brands to address these concerns and help make Consumers’ Decision Making Process easier.
Practicing Sustainability is difficult not only for businesses, but also for the consumers- if not more so. Taking a compassionate, more empathetic stance for your consumers now, might take you a long way in the future.