ING-向消费者学习（英文）-2020.2-42页_3mb

Summary of Document: Learning from Consumers - How Shifting Demands Are Shaping Companies' Circular Economy Transition

Core Content

This document outlines how shifting consumer demands are influencing the transition of companies toward a circular economy. It is based on a global survey of 15,000 consumers across 11 countries, conducted in H2 2019, and includes insights from industry executives. The report highlights the growing consumer awareness and responsibility toward sustainability, the barriers to deeper engagement with circular models, and the opportunities for brands to drive change through communication and design innovation.

Main Points

Consumer Awareness and Responsibility

• 83% of consumers believe their own behavior and choices can positively impact the environment.
• 59% of consumers are influenced by environmental impact when making purchasing decisions.
• 61% would be less willing to buy a company's products if it was found to be performing poorly on environmental practices.
• 38% of consumers have boycotted food brands due to environmental concerns, with 48% of younger consumers doing so.

Barriers to Circular Engagement

• Awareness gaps: Many consumers lack knowledge about circular product models and how to participate in circular behaviors.
• Empowerment and reassurance: Consumers often feel they lack the skills to repair items, and concerns about data security deter them from leasing electronics.
• Convenience and infrastructure: Novel circular practices are seen as requiring more effort, with 41% thinking renting clothes would be more effort than buying new.
• Cost: Price remains a significant factor, with 54% of consumers still choosing low-cost fast-fashion items over more expensive, durable ones.

Consumer Personas

The survey identifies three broad consumer groups:

1. Non-engagers (42%)

   • Do not consider sustainability in their buying decisions.
   • Unwilling to pay more for sustainable products.
   • Skeptical about their individual impact on the environment.

2. Circular Sympathisers (30%)

   • Care about sustainability and are prepared to pay more for environmentally friendly products.
   • Will not inconvenience themselves with recycling or repair.
   • More likely to engage with pre-owned markets than Non-engagers.

3. Circular Champions (28%)

   • Place high importance on environmental impact, even more than price.
   • Willing to pay more for sustainable products and to put in extra effort for recycling and repair.
   • Most active in adopting circular practices, such as repairing clothes and recycling.

Circular Economy in Fashion

• Fast fashion remains popular, especially among Non-engagers (64%).
• Durable and recyclable clothing is gaining traction, with 73% of Champions willing to pay more for fully-recyclable clothes and 79% for clothes guaranteed to last longer.
• Clothing rental is seen as a practical option for short-term needs, with 22% of all consumers likely to rent everyday outfits.
• Circular Sympathisers are the most open to renting, while Non-engagers are the least.

Key Insights

• The circular economy presents a multi-trillion-dollar business opportunity.
• Sustainability is becoming a key factor in consumer decision-making, with environmental impact now surpassing brand recognition.
• Companies must bridge awareness and engagement gaps through better communication and innovative design.
• Consumer behavior is influenced by convenience, cost, and perceived effort.
• Non-environmental incentives, such as cost savings, are essential for engaging Non-engagers.
• Government and industry collaboration is needed to support the development of circular infrastructure.

Conclusion

The shift toward a circular economy is being driven by evolving consumer expectations and the increasing recognition of the environmental impact of their choices. While the majority of consumers are willing to support circular practices, there are significant barriers to adoption. Companies must tailor their strategies to different consumer groups, provide clear and accessible information, and design products and services that align with the convenience and cost considerations of today's market. By doing so, they can encourage greater participation in circular models and secure long-term sustainability and profitability.