Hong Kong consumer survey finds majority willing to pay more for sustainable goods
- The results showed 78 per cent have paid higher prices for more sustainable products or services
Consumers in Hong Kong feel that their favourite brands are not doing enough on sustainability, and they are willing to pay higher prices for sustainable products, according to a survey whose results were published on Friday.
The survey, conducted by communications agency Echo Asia and sustainability consultancy PIE Strategy, interviewed 1,199 consumers in Hong Kong who were between 18 and 65 years old, although a majority were in the 18 to 49 age group.
The results showed 57 per cent of respondents felt that their favourite brands were not doing enough on sustainability and 78 per cent said they have paid more for a more sustainable product or service.
Nearly 70 per cent said when quality and prices are similar, they would choose products with sustainability elements and nearly a third said they would avoid purchasing products with poor sustainability performance.
“This study broadens the debate on sustainable consumption behaviour,” said James Chan, the co-founder and senior sustainability consultant of PIE Strategy.
The result echoed the findings by McKinsey and NielsenIQ’s study that the consumers are shifting to environmental, social, and governance (ESG) products after the pandemic, under the concept of “health of the planet”.
However, the survey revealed that around 70 per cent of the consumers see higher prices of sustainable products as the main reason for avoiding purchase of these products, followed by limited product choices and misleading sustainability claims.
The Hong Kong sustainability consultancy said that 13 per cent of those surveyed would pay an additional 10 per cent or more for sustainable products.
“10 per cent is a watershed for consumers and they are more willing to buy sustainable products if the premium is less than 10 per cent,” said Chan. “There’s also an opportunity for companies to adjust their cost for sustainable products to attract customers.”
“Shopping is inevitable in our daily lives, as our study finds that consumers acknowledge the contributions of sustainable consumption, yet they do not act accordingly,” said Samson Tong, the founder of Echo Asia.
Nearly four in five respondents said they can contribute to environmental and community development by choosing sustainable products and services, and Nearly half had stopped or cut down on their purchases from a brand due to the brand’s insufficient focus on sustainability.
“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,” said Chan. “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.”
