American business leaders have finally noticed a great amount of demand for sustainable products based on several business case studies. Most of all American companies have jumped on the sustainability bandwagon with many different degrees of sincerity. There are many factors and reasons for how it happens. I summarized several studies here. Here are the ideas of how sustainability attracts more customers.
Growing Consumer Demand
It would be impossible to ignore the fact that the need for greater sustainability on the part of customers is increasing. A Nielsen survey conducted at the end of 2015 showed that 66% of respondents would pay more for a good or service if the company committed to beneficial environmental and social change.
This increase in consumer awareness began with the emergence of an awareness of the profound impact consumer lifestyles have had on the global environment. With this increased awareness, consumers became more aware that fossil fuels’ consumption in products included their cars and the transport that brought the products to the market.
The Bottled Water as an Example
Bottled water sold in individual packs served as a wake-up call for customers. A 2013 evaluation of the industry stated that bottled water represents the very antithesis of what sustainability means. This evaluation made customers think. It included the cost of transporting the water, usually in a motor vehicle, from the source to the retail website. From this point of view, companies that produced sterile canteens could not deliver water to the company’s suppliers.
The Business Respond
The modern implementation of SCM in terms of sustainability was a very simple and effective solution. Companies added supplier positioning to their SCM platform and started to prefer the people closest to the point of delivery. This had the added benefit of making available the documented impact of the changes made to increase resilience.
Communicate these changes, and nearly 90% of customers indicated that they were more likely to purchase products from a company that makes changes to improve resilience. An equally high percentage believe it is the company’s responsibility to provide this information.
Sustainability issues are likely to continue to exist soon, and the company will certainly address them. Communicating these efforts and their results can increase customer awareness, leading to a very positive cycle and a sustainable marketplace.