A new study conducted by RB Consulting and Snapcart in March 2024 has shed light on the environmental consciousness of young Indonesians aged 15-29. Contrary to prevailing beliefs among older generations, this demographic not only acknowledges global climate change but also expresses deep concern about its impact. Let’s delve into the key findings and implications for businesses and brands.
Key Insights
Awareness and Concern: An impressive 76% of young individuals prioritize sustainability and the well-being of the planet for future generations. This statistic challenges the stereotype that young people are indifferent to environmental issues.
Willingness to Pay: From a marketing perspective, these environmentally conscious consumers are willing to pay a premium for brands that contribute positively to the environment and society. However, this preference raises important questions: Will they actually pay more? How big is the gap between idealism and reality? What must brands do to justify a higher price point?
Generation Gap: RB consulting also did a quick qualitative conversation with various senior professionals in marketing and sales; they are mainly from the older generation. It reveals skepticism about young people’s idealism. While young generation claims to be willing to pay more, affordability remains a critical factor. Is there a dissonance between their ideals and spending behavior?
Brand Strategy Implications
Integration Matters: Brands must move beyond corporate-level statements and integrate social and environmental responsibility into their value propositions. Authenticity matters—the gap between claims and actions should narrow.
Brand Choice Preference: For now, young consumers favor brands that demonstrate social and environmental consciousness. Brands could leverage these aspects in their communication.
Corporate-Product Linkage: Aligning corporate brand values with product branding can enhance brand preference. Over time, as GDP per capita rises, premium pricing may become more feasible.
Hope for the Future
Despite the gap between idealism and reality, there’s hope. Young Indonesians care about social and environmental issues. Businesses must find ways to bridge the gap and encourage appreciation for brands that prioritize sustainability.
Research and Business Impact
Qualitative Research: Understand specific aspects of social and environmental concerns that resonate with young consumers.
Quantitative Studies: Assess business impact through pricing studies, segmentation, and positioning.
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