who is willing to pay more for green?
According to a new study conducted by Miller Zell, our nation’s retailers are missing the boat when it comes to offering eco-friendly products. In fact, the survey finds that half of all shoppers are willing to pay more for green goods and they universally dissatisfied with the sustainability information.
An interesting finding from the study uncovers a higher willingness of lower income shoppers to pay a premium for green products. In fact they are more likely to pay for eco-friendly items than middle or upper income consumers. Why are lower income shoppers more willing to shell out a higher percentage of their hard-earned cash for “green goods”? Some speculate that this is due to Gen Y Millennials who have just entered the workforce, and who make up a disproportionate percentage of the lower income bracket.
The Miller Zell study also indicates that there is an opportunity for companies to supply more green information at the shelf level. On average, 40 percent of consumers desire more information about green products, with Gen Y Millenials listed as the most interested segment. Although consumers yearn for an increased amount of quality information, retailers are not delivering. The overall availability of in store information on green products received a D- from those who participated in the study. All of this is good timeing for Wal-Mart’s new sustainabilty index labels. The team in Arkansas seem to, once again, know exactly what consumers are looking for.
