Brands should focus on promoting specific dimensions of sustainability to effectively connect with consumers in India.
According to a new Bain & Company report, climate change is a top concern for 80% of Indian consumers, driven by culture and circumstance, and sustainability is a natural choice, requiring brands to understand health, quality, and cost dimensions.
All the same, India’s consumers are less concerned about their carbon footprint and recycling rates compared to their global counterparts. Therefore, brands in India should not assume all consumers share the same sustainability motivations, as one size does not fit all. This could be a significant missed opportunity, BAIN & Company noted in the report.
Key findings:
The global and Indian consumer concerns about climate change:
• 64% of Indian consumers report intensified concerns about climate change over the past two years.
• Fears are linked to extreme weather events, leading to increased sustainability concerns globally and in India.
• Indian consumers cite negative environmental impacts, local conditions, and social media as reasons for concern.
• Global consumers are influenced by news articles and documentaries.
The Indian contrast:
In the US, consumers are willing to pay up to 10% more for products with minimal environmental impact, highlighting the growing importance of sustainability in marketing.
In India, sustainability is a cultural and circumstance-driven choice, often saving consumers money rather than charging a premium.
The research showed that a third of Indian consumers identify vegetarianism as a sustainable lifestyle habit, but this practice is often associated with religious beliefs rather than environmental concerns.
“Likewise, consumers in India reported that they “avoid driving” and try to reduce energy consumption in their homes. Sustainability is a by-product of these behaviors, not the impetus,” wrote Ravi Swarup and Karthik Ganesan, partners at BAIN & Company.
Contextually, brands must understand Indian consumers’ unique sustainability priorities on a category-by-category basis and adopt a targeted approach to product development and marketing, the authors said.
Understanding the Indian consumer mindset:
Indian consumers make purchasing decisions based on sustainability, but they are more likely to adopt sustainable products and practices that meet other needs.
They prioritize natural goods, health benefits, quality, and cost in their purchasing decisions across all food and non-food categories.
They are well-educated about the environmental impact of packaging, with 83% valuing it, compared to only 61% globally. More than 60% favor paper packaging over plastic, as it’s easy to dispose of, recycle, or reuse.
82% of Indian consumers have started sustainable shopping in the last five years, influenced by personal experiences, social media, and peers. However, challenges include difficulty in finding information, confusing labels, and limited availability.
Corporate strategies and brand reputation:
Companies should cater to regional preferences and tailor their marketing strategies to meet the unique sustainability needs of their consumers.
Brands can enhance value by offering sustainable products that meet key purchasing criteria, such as saving time, reducing energy bills, or enhancing health.
They should prioritize health, quality, and cost, develop sustainable products, and create messaging around these elements to build momentum for their sustainable efforts.
Indian consumers prioritize sustainable packaging. Brands can reduce waste by increasing packaging reusability and recycling. They should ensure that consumers are made aware of the proper disposal options.
In India, consumers favor paper packaging and are inclined to repurpose it. Companies should collaborate throughout the value chain to source materials and educate consumers about the importance of recycling.
Government programs have significantly influenced public sentiment and behaviors in India towards sustainability. The Indian government is promoting a carbon credit policy and urging listed entities to publish sustainability reports, presenting significant opportunities for brands to collaborate.
Brands could significantly benefit from partnering with the government, potentially becoming more influential than private-public collaborations in other global markets.
Brand-retailer collaborations can encourage consumers towards sustainable choices by making sustainable products more accessible and prominent in stores. They can work together to implement recycling, packaging return, and refill programs and incentivize sustainable behaviors to attract cost-conscious shoppers.
Conclusion:
Consumers are willing to purchase sustainable products if they are affordable and accessible and believe the government could play a more significant role in promoting sustainability.
