NEW STUDY FINDS 50% OF HONG KONG CONSUMERS HAVE STOPPED OR CUT DOWN ON PURCHASES BECAUSE BRANDS DON'T FOCUS ON SUSTAINABILITY

HONG KONG, July 22, 2024 /PRNewswire/ -- A "Sustainable Consumer Choice Survey 2024," which aims to gauge the sustainable consumption behaviour of Hong Kong consumers and gain insights into the trends in sustainable consumption, has revealed that nearly half of the respondents have stopped or cut down on their purchases because brands do not place sufficient focus on sustainability.

This research is a collaboration between communications agency Echo Asia, and PIE Strategy, a sustainability consultancy and an internationally certified B Corporation®. The research methodology and questionnaire design also benefited from the advice of Dr Fred Ku, Associate Dean of the Faculty of Business of The Chinese University of Hong Kong, who serves as Honorary Advisor to this study. As an independent researcher, PIE Strategy interviewed 1,199 Hong Kong consumers through an online questionnaire, with over 80% of respondents aged between 18 and 49, mainly covering Generation Z and Millennial consumers.

Only a few have paid over 10% extra

The study found that only 3% of respondents believe that information about brands' sustainability efforts is completely irrelevant to consumers. Nearly 70% of consumers said that they prefer products with sustainability elements when quality and price are comparable; some respondents also expressed more confidence in brands that support sustainable development (33%) and would avoid purchasing products with poor sustainability performance  (31%).

Near 80% of respondents (78%) have paid more for a more sustainable product or service. The majority (65%) paid less than an additional 10%, while only 13% said they would pay more than 10% on average. The data also shows that 70% of consumers believe the perception of sustainable products as more expensive is the main reason for reduced consumer interest, followed by the perception of limited product choices and exaggerated or misleading sustainability claims.

More than half think their favourite brands are not doing enough on sustainability

When evaluating their favourite brands, 57% of respondents felt that their favourite brands were not doing enough on sustainability; 85% of respondents would be interested in learning more about their brands' commitments and plans for sustainability. Nearly half (49%) have stopped or cut down on their purchases from a brand due to the brand's insufficient focus on sustainability. Currently, consumers receive sustainability information about a brand mainly through social media (80%), and more than half learn about such information from the packaging of a product.

The definition of sustainable products is very broad, and from the respondents' perspective, the environmental impact of a product is their main consideration. Energy efficiency and carbon reduction was identified as the most important factor (43%), followed closely by the use of recycled materials, waste reduction and sustainable packaging. Additionally, 25% of respondents stressed the importance of valuing and respecting employees. About 40% of respondents among consumers aged 29 or below rated energy efficiency and carbon reduction, sustainable packaging and products using environmentally friendly, recycled materials as factors they would consider when choosing sustainable products or services.

Nearly one in five among the respondents (77%) agreed that, as a consumer, they can contribute to environmental and community development by choosing sustainable products and services. However, only 41% of the respondents reported that they would pay attention to sustainability elements when choosing products, use products and services from sustainable brands at least once a month, and are willing to pay more for more sustainable products or services. Lack of affordable product choices (69%) was identified as the primary barrier to nurturing sustainable consumption habits; besides, 40% of the respondents also identified limited product options and lack of information channels to learn about sustainable brands as obstacles hindering sustainable consumption.

Neglecting sustainability can harm a brand's reputation

Echo Asia founder Samson Tong stated, "Based on the above survey results, the overpricing of the sustainable product, the limitation of choices, and the lack of the communications channels promoting sustainable corporate's information will become external factors hindering consumers from sustainable consumption. Shopping is inevitable in our daily lives, as our study finds that consumers acknowledge the contributions of sustainable consumption yet do not act accordingly, hence brands and enterprises should leverage their unique roles to create positive impact. Practising sustainable development is a crucial part of initiating change and it requires unwavering commitment and a determination to continuously improve. Our team believes that brands should continuously innovate and seek new ways to reduce their environmental impact, thereby remaining competitive in an ever-changing world to meet the new generation's expectations for sustainable development."

"This study broadens the debate on sustainable consumption behaviour. As consumers, it's natural to want a wide range of choices at reasonable prices. The key takeaway for brands is that consumers may stop buying from a brand due to its lack of attention to sustainability and switch to other brands. Neglecting sustainability can harm a brand's reputation and image. We would encourage Hong Kong companies to incorporate sustainability elements into their product strategies, making sustainable consumption a new norm," says James Chan, Co-founder and Senior Sustainability Consultant of PIE Strategy.

The survey aims to fill the knowledge gap on the trends of sustainable consumption in Hong Kong and to help businesses understand the sustainable consumption behaviours and expectations of Hong Kong consumers. This understanding will enable companies to enhance their competitiveness and expand their market through sustainable product and service offerings. The study surveys consumer habits and the popularity of brands in the four areas of clothing, food, housing, and transportation to identify which brands Hong Kong consumers regard as "sustainable." Additionally, focus groups were conducted, inviting consumers with different viewpoints for in-depth discussions, providing deeper insights into the barriers, challenges, and opportunities of sustainable consumption in Hong Kong.

Key findings of Sustainable Consumer Choice Survey 2024 can be downloaded at:
https://bit.ly/SustainableChoiceSurvey2024_EN (English version)
https://bit.ly/SustainableChoiceSurvey2024_CN (Chinese version)

About ECHO ASIA

Echo Asia is an Asia-Pacific's digital communications agency focused on promoting and supporting sustainability and a low-carbon lifestyle for the well-being of the people, community, and the environment, by offering purpose-driven digital, social, branding, and CSR communications solutions to corporates across Asia-Pacific. The ultimate end result is to achieve and help others achieve sustainable growth until it becomes immeasurable, and to be the earth's most dependable companion by making every business decision an innovative and socially responsible one.

Echo Asia website: www.echoasiacomm.com
Echo Asia Instagram: www.instagram.com/echoasia

About PIE Strategy

A certified B Corporation®️ and a Best For The World Honouree, PIE Strategy takes on the toughest sustainability challenges and turns them into opportunities to create lasting value for our clients and society. We specialise in providing independent, professional strategy advisory and technical services to help our clients embed sustainability considerations into corporate and product strategies that deliver sustainable growth, while driving better outcomes for people and the planet. This is made possible by our talented team of sustainability strategists and specialists who see inspiring sustainable change not only as a profession, but also a shared passion and purpose.

For more information, visit www.piestrategy.com and follow us on LinkedIn.

For enquiries, please contact:
James Chan
+852 6235 0919
james@piestrategy.com

source: PIE Strategy Limited