First Insight and Wharton Baker Retailing Center found that consumers are willing to pay for more sustainable shopping options, surprising many retail executives. The report revealed that a knowledge gap exists between what consumers actually want and what retailers presume they want when it comes to sustainable items, presenting opportunities for retailers to boost customer loyalty and increase sales by offering more eco-friendly product options.
The report found that two-thirds of consumers said they would pay more for sustainable products, but two-thirds of retailers thought consumers were not willing to spend more for eco-friendly products. Almost 75 percent of consumer respondents indicated they valued sustainability over brand names. Over 94 percent of retailers believed the opposite, that consumers want brand name over sustainability.
“This report clearly demonstrates that retailers are leaving money on the table. Brands and retailers must listen to the voice of the customer on issues as critical as sustainability,” says Greg Petro, CEO of First Insight. “Consumers want more than performative measures from retailers and brands when it comes to ESG priorities, which will only become more important as Gen Z grows in influence.”
