More than a Trend: The Prevalence of Conscious Consumerism in Singapore and how Retailers can Adapt to it
Does this image look familiar to you? If you have been paying attention to your surroundings while waiting for your takeaways recently, you may have noticed these stickers at multiple food stalls around Singapore. Or perhaps you may have realized that more places are charging an extra $0.10 or $0.20 for takeaways. These initiatives are part of the Bring Your Own campaign started by Zero Waste SG in 2017 to encourage Singaporeans to stop using harmful disposable wastes like plastic and styrofoam. This campaign has gained a lot of momentum in recent years, especially with the Covid-19 pandemic. More importantly, however, is the fact that consumers in Singapore are becoming more and more conscious of their actions and its implications. It is more than simply buying what you want, whenever you want. Today, our actions have much larger consequences.
What is Conscious Consumerism?
Typically, conscious consumption refers to the act of buying products or services that are good for the environment or simply reducing waste by purchasing less. This includes bringing your own reusable containers and bags to store goods, only buying products that are fair-trade, not buying things that are packed in multiple layers of plastic and more. Today, we have assigned much more responsibility to our consumption habits. In fact, a more appropriate term we should now adopt is ‘consumer activism’. Beyond saving the environment, we now use our actions to either hurt or support the revenue of an organization through boycotting or buycotting them.
Given the current Covid-19 pandemic, another customer concern is hygiene. McKinsey’s Covid-19 Consumer Pulse Survey in June 2020 reported that especially in Asia, “Healthy and Hygienic packaging” and “How companies take care of the safety of their employees” are the things they have started doing the most of ever since the pandemic started. So besides being more socially and environmentally responsible, companies have to be more hygienic to appeal to the current consumers, otherwise, they might find themselves amongst the bandwagon of boycotted companies.
How does this affect the Retail Industry in Singapore?
So what about it? What does conscious consumerism have to do with Singaporeans? A lot, actually.
As observed from the 2020 General Elections, young voters seem to have become much more politically active and vocal about their opinions, be it online or in person. From many online resources being created to educate the masses on various social issues to the first Climate Rally being held last year, youth activism is becoming more prevalent, and their activism extends to their consumption habits. Abillion found that 80% of Singaporeans are willing to pay higher prices for socially conscious products, and also, Singaporean youths are getting more vocal about holding companies accountable for their actions. If companies fail to show their support for various movements, or if they are found to have problematic beliefs, they may be cancelled.
Hygiene consciousness may not budge even after the pandemic has more or less settled. According to a study by Nanyang Technological University last December, more than 6 in 10 Singaporeans will continue taking precautionary measures and practice good hygiene even after the pandemic has more or less settled. If companies are unable to appeal to the current consumers who are more careful about their purchases, their sales will suffer. Therefore, it is important for retail companies in Singapore to take into account this rise of conscious consumerism in order to make necessary changes to adapt to this new generation of consumers.
5 Ways to Adapt
Here are some tips from IBM’s Research Insights about consumers in 2020 and Deloitte’s 2021 retail industry outlook on how companies can adapt to the new generation of buyers.
- Be Transparent
Provide detailed information about the products your company use and sell, as well as an explicit stance on various social issues. Being open and traceable helps to garner consumers’ trust, and it helps them make their purchase decisions with more ease. A great way to provide information in a clear and accessible way on your website would be to have a chatbot. Besides helping customers through providing immediate answers, chatbots also enhance the shopping experience by making it more personalised.
2. Offer Alternatives
As mentioned above in the study by abillion, consumers are willing to pay higher prices for goods that are more environmentally friendly, or made with fair trade. Retail companies should factor in consumers’ willingness to contribute to these various causes when they create their products by either making alternatives, or creating a line that is more socially and environmentally responsible.
3. Align Sustainability to Core Competency
Partnering with other companies that are also environmentally and socially responsible. This will not only reinforce your company’s dedication to these causes but also produces a circular economy that consumers can support. It may be impossible to only partner with ethical companies, but making some small changes is better than none at all.
4. Infuse Health and Safety throughout Operations
Since the pandemic, retailers have had to embrace new regulations like pickup only, and cashless payments. Besides keeping consumers safe, it is also important to have regulations that serve to keep employees safe. This not only presents your company as a responsible employer but also enforces the hygiene standards of their products so consumers can feel safer buying from you.
5. Reinvent the Retail Experience
Given the current pandemic, many things have to be digitalized, so in order to adapt, it is important to redesign the way buyers can go about purchasing your products. The retail experience can also be redesigned to promote more environmental and social consciousness, for instance through gamification: have customers collect points by spinning a wheel and accomplishing the sustainable task that they land on.
At the core of it all, consumers just want to see your company’s brand identity, as well as the values your company stands for. The above list is not exhaustive; they are just some tips to get you started. There are many more things that companies can do to appeal to conscious consumers, and we have the expertise and ideas to help you take that next step.
Conclusion
The BYO Campaign is one of the few social movements that Singaporeans are getting more involved with. There are many other social issues that companies can show their support for in various ways. To get an edge over the rest of the competition, companies should start adapting to the conscious consumerism that is on the rise in Singapore. Of course, the more important reason for this shift should be the benefits that it brings to the world as a whole. After all, a more environmentally and socially conscious world is definitely a greater world to live in. Wouldn’t you agree?
Unsure of how to start making changes? 2359’s in-depth knowledge about Chatbot solutions and innovation strategies has helped our clients to digitalize their businesses and reinvent their retail experiences to constantly adapt and appeal to consumers’ changing needs.
Have a chat with us to figure out the next best steps for your company.
