Notably, nearly two-thirds of respondents in China said they have purchased a new brand or product specifically because of its sustainability practices, but only 42% said they regularly opt for pricier alternatives that are more eco-friendly.
The Wunderman Thompson survey also found that price was a factor. Among respondents who said they did nothing or could do more to live sustainably, the top two challenges cited were that it took too much effort and that it was not convenient. The No. 3 reason was that it was too expensive.
Even so, sustainability is here to stay, though the idea of doing good, in and of itself, will not be enough to get consumers through the door. When asked what was at least somewhat important for brands to prioritize, the vast majority of lifestyle consumers in China said the quality and reliability of products or services (98%) and convenience and customer experience (94%), according to the Stifel and Morning Consult poll. These were followed by putting out new products, services, or features (86%), offering lower prices (85%), and operating sustainably (78%).
Emerging trends lend themselves to eco-friendly brands. “There is a growing market for plant-based protein products. Consumers are recognizing that plant-based diets are key to addressing climate change and biodiversity loss, which are hot topics in China this year,” Nepstad said.
Led by younger generations, China’s fast-rising middle class is also eager to upgrade its standard of living. This often translates to a willingness to pay more for higher-quality products, better experiences, and the feeling that they’re doing good—a trend that green brands can ride to offset their more costly supply chains.
In a command economy such as China, the government could be the single biggest reason why consumption may eventually take a turn for the greener. The Chinese government has pledged to achieve carbon neutrality by 2060, and in January, it banned stores in major cities from providing plastic shopping bags, piloted recycling programs, and put a stop to single-use plastic straws throughout the country.
What’s more, green financing is skyrocketing. In Q1 2021, issuers in China sold RMB 108.4 billion ($15.7 billion) in bonds to fund green projects, according to Refinitiv data, making China the largest market for such bonds.
Many of China’s leading internet companies—including the Alibaba-affiliated Ant Group, Baidu, JD.com, and Suning—have already announced goals and implemented programs to cut emissions.
Brands may soon be in the hot seat themselves. To convert mindful shoppers into buyers, brands should make their environmental initiatives clear and easy to understand, according to a March 2021 Mintel poll covering 16 countries, including China.
Nearly half of internet users surveyed said information on the direct impact (e.g., one tree planted per item sold) and the environmental cost involved would encourage them to make a purchase. More than 40% said so for measurements of impact that are easy to understand (e.g., liters of water consumed) and environmental certification by third-party auditors.