Economic pressures holding back ethical spending
By Ben Sillitoe - 11:33AM - Tue 5th October 2010
The trend for buying ethically produced goods is disappearing as a result of economic pressures in the UK, a new report from market research agency Shoppercentric suggests.
According to the study, some 77 per cent of customers admit that higher prices are stopping them from buying more environmentally-friendly products while 55 per cent of the UK’s shoppers said they cannot afford to act on their ethical principles.
Shoppercentric did find, however, that the number of people who have ethical concerns ingrained in their shopping habits has risen four per cent over the last two years, and urged retailers not to use the tough economic environment as justification for not providing ethically-produced goods.
Danielle Pinnington, Managing Director at the agency, said: “We would strongly counsel against businesses reading these trends as a suggestion that there is a diminishing desire for ethical products and practices among shoppers.
“Instead, we would interpret the changes in behaviour as reflecting a change in what shoppers are looking for.
“Ethical choices aren’t about brands or retailers using specific labels as some value-added variable that justifies a higher price point. Ethical choices are increasingly about fair pricing, production and practices that extend beyond a label.”
Pinnington also called on retailers and manufacturers to continue communicating with their customers on ethical matters as the businesses which can convince shoppers of their ethical credentials now will be in the best position to benefit from the “green pound” when the economic situation recovers.
Today’s Shoppercentric findings come as DIY retailer B&Q launches a petition to get VAT reduced on green goods.
A survey by B&Q found that 95 per cent of its customers would be more encouraged to by energy efficient products if VAT was lower on these goods.
Echoing comments made to Retail Gazette in August by British Retail Consortium Director General Stephen Robertson, CEO of B&Q and Kingfisher UK Euan Sutherland said the government must incentivise businesses.
“We believe the government and the European Commission must do more to help us make energy saving products affordable to all by cutting the VAT to five per cent,” he commented.
“That’s why we’re launching this petition which we will present to the Treasury later this year.”