Indian consumers willing to pay more for green products: Green Brands Survey

The results of the recently released 2011 edition of the global ImagePower Green Brands Survey undertaken by Penn Schoen Berland, a research based strategic communication advisory show that the majority of Indians think the state of the environment is heading in the wrong direction and want the government to support more green innovation and regulation.

"Limited choice' and "lack of transparency in labeling' are the key obstacles to buying green in India and consumers want the government to mandate extended producer responsibility and greater label clarity with respect to ingredients and food origin. Packaging needs to be improved to highlight: the ingredients & origin, food testing & safety as well as environmental impact. Additionally, green products also need to be more widely distributed and made available in mainstream shopping venues.

"Transparency & consumer engagement will drive preference for green brands. "Green Marketing' needs a different approach and those who will cease the initiative will see a greater share of wallet and brand equity." said Ashwani Singla, Managing Director and Chief Executive, Penn Schoen Berland, South Asia.

Concern about the environment is translating into a willingness to pay a premium for green products. 64% of Indian consumers indicate they plan to spend more on green products next year. Furthermore, consistent with other emerging countries, Indians are willing to pay a green premium price, with 48% of Indians willing to spend 10% more on a product simply because it is green.

Lulu Raghavan, Country Director (India), Landor, the partner for the survey says, "The survey findings tell us that greenness remains a major issue for consumers around the world, and that they expect green practices from the companies they do business with. There are huge opportunities in the Indian market for companies that establish their green credentials early."

Consumer education continues to be a major contributor to purchasing decisions though Indian consumers are significantly more influenced by mass media. Consumers in India are trusting of green advertising compared to their counterparts in the UK and US with 86% of Indian consumers reporting that advertising about green products help consumers make more informed choices. TV advertising & programs and newspaper articles have the greatest impact on their likelihood to purchase green products.

Globally consumers are expanding their demand for green products from the "in me and on me" category to bigger ticket items. In India 28% of consumers intend to purchase green auto in the next year, which is a significant increase from the 16% that purchased green auto last year. Similar trends are seen around the world, with China and Brazil demanding green auto and the UK, US and France demanding green technology.