According to research conducted by global DTC e-commerce specialist ESW, affluent and younger shoppers are at the forefront of prioritizing sustainability. The study found that the highest-spending shopper groups, as well as Millennials and Gen Z, are most influenced by sustainability credentials when making online purchases. This highlights a shift in consumer behavior, where eco-friendly products are no longer considered prohibitively expensive, especially for wealthier consumers who can afford to prioritize sustainability.
ESW surveyed over 16,000 shoppers from 16 countries and discovered that a significant majority, 83%, consider sustainability when making a purchase. This percentage jumps to 91% among cross-border e-shoppers, who also tend to spend 4% more annually online than domestic shoppers across all product categories. While this 4% increase may seem small, it underscores the significance of sustainability as a deciding factor for consumers.
ESW Europe and UK CEO Martim Avillez Oliveira stressed the importance of prioritizing sustainability, transparency, and positive environmental practices in order to attract these high-frequency, high-spending customers who value eco-consciousness. The study revealed that Millennials and Gen Z shoppers are the most frequent cross-border shoppers, with 39% of Gen Z and 34% of Millennials making 12 or more international online purchases annually. Furthermore, 73% of Millennial shoppers plan to maintain or increase their online spending in 2023, solidifying their position as leaders in global e-commerce spending.
The survey found that younger shoppers, specifically 94% of Gen Z and 93% of Millennials, consider sustainability when making online purchasing decisions. In comparison, 88% of Gen X shoppers and 77% of Baby Boomers prioritize sustainability to some extent. This preference among younger consumers is significant not only for the present but also for the future as they accumulate more wealth.
For brands and retailers looking to expand into cross-border markets, it is important to note that countries with a higher proportion of young shoppers tend to prioritize sustainability. India leads the way, with 98% of its young shoppers considering sustainability, followed by China (94%), UAE (94%), and Mexico (93%).
When it comes to specific product categories, luxury shoppers are the most likely to consider sustainability, with 93% taking it into account when making a purchase. This is followed by beauty shoppers (87%), consumer electronics (87%), and apparel (84%). Additionally, shoppers expressed a desire for environmentally-friendly packaging options (46%), sustainable shipping (43%), reduced overall packaging (42%), and green delivery options (35%).
In conclusion, retailers can be assured that customers are not simply paying lip service to sustainability, but are actively making purchasing decisions based on their environmental concerns. As the demand for sustainability continues to grow, it is crucial for brands and retailers to prioritize eco-friendly practices and appeal to the values of their target demographics.
Useful Links:
1. How Millennials and Gen Z Influence Older Consumers and Shape Mobile Habits
2. Shopper Trends: A Decade in a Day – A Global Cross-Category View
