Green Generation: Millennials Are Willing to Pay More for Sustainable Goods
Today, more than ever before, the world is aware of the environmental changes and their consequences. Younger generations are voicing their dissatisfaction with the way this matter is handled and are doing everything they can to change things for the better.
Millennials are conscious of the relation between the quality and price, as well as that sustainable goods are still an expensive commodity. However, even this doesn’t prevent them to pay extra for sustainable merchandise. They have a high regard for corporate sustainability and the eco-friendly approach by brands. Producers, manufacturers, and sellers who can demonstrate sustainability of their goods are more likely to be Millennials’ choice.
According to Forbes, Millennials plan to spend $65 billion on goods over the course of next decade. This fact makes them the most wanted consumers of every seller. But it’s not easy to sell anything to this generation. They are well informed and aware of their possibilities and opportunities. Millennials search for value behind the product, something that will give them good enough reason to spend their money.
1. Millennials care about their image
As generation which practically grew up along the social media, Millennials are highly conscious of their image. This is the reason why they try to make a statement with their behaviour since they see it as a mark of their identity. They believe that brands define their place in the world merely with their image in the public sphere.
This means that companies have to take into consideration the way Millennials feel about the environmental issues. Most notably, they have to invest in marketing which will address this matter, but also adjust their production to fit this. Call to environmental awareness has been present since the 1980’s, but with the development of global social media, it has gone viral. Today, Millennials know that choosing biodegradable products and packaging is something that will simultaneously boost their image and help the environment.
2. They see sustainability a bit differently
Millennial’s observe sustainability from the socially responsible point of view, as well as organised care for human, animal and plant health. They don’t consider only obvious aspects of eco-friendly behavior, but also the perception the companies have of their surroundings.
For example, companies which give to the community and help the population in need will more likely gain Millennials’ trust. The way brands show respect not only to the environment but also to the people will define them among this generation. Those who show the positive impact on people’s lives and corporate sustainability will matter more than those who concentrate only on one aspect. That is how corporate social responsibility came to be and turned into the focus of those companies who want Millennials as their customers.
3. Millennials are smart
The biggest mistake a company can make is thinking that they can sell anything to Millennials. This generation not only knows how to do the research but also sets the pace of the market. This is especially visible in the real estate market, which is completely changed for the better with Millennials as buyers.
They give more credibility to other people reviews of a product than they do the advertisement. Such behaviour has also changed the marketing world. Marketers today had to turn their focus on the word-of-mouth and more personalized advertising in order to appeal to Millennials. When it comes to being eco-friendly, Millennials will carefully approach products from the certain brands. If they can’t find proof that the brand’s advertising is true about the eco-friendly features of the product, they will more likely reject it.
4. They are known as the Green Generation
Millennials are fully aware of the environmental issues and try their best to live responsibly. They are considered to be the most sustainable generation. For example, Millennials will more likely choose bikes as transportation to work than a car, bus or any other pollution generating means.
In addition, they will support strict environmental regulations and are more likely to opt to work for employers who abide by these rules. Even though economic situation is still far from stable, they will still decide to pay more for eco-friendly goods. They take their time to research the product’s environmental impact and how it will affect human and other life during its decay time.
5. They support socially responsible marketing
This generation has distinctive values and habits which reflect how they feel about their earning and spending of money. Millennials won’t spend their money unnecessarily and without any viable cause. Being a socially responsible company plays a major role in winning over Millennials. They have a high regard for those who use sustainable methods of manufacture and abide by ethical norms in business.
Annual Global Corporate Sustainability Report by Nielson published in 2015 showed that 73% of Millennials prefer spending on sustainable brands. They expect the companies to adopt socially responsible marketing and sustainable business, as well as ethical values. More importantly, with their attitude, Millennials changed the marketing and how it’s used today. Their attitude makes companies embrace transparency and honesty when promoting their products, goals and inner structure.
We are yet to see all the possibilities Millennials will bring when this generation fully takes over the breadwinning baton. For now, they’re changing the market systematically and influence businesses to adopt environmentally friendly and green production practices and behavior. This way, Millennials are not only changing the planet for the better, but also people to respect ethical and socially acceptable actions.