Sustainability as a new normal – what does tomorrow’s consumer want.
People Integrated
People Integrated offers Human Capital Consulting and Executive Search.
The combination of the consumer's appetite for up-to-the-minute styles, desire for instant gratification and innovations in retailers' supply chain management have contributed to the rise of the fast fashion industry in the late 20th and early 21st centuries. Contrary to more traditional 4 collections per year, fast fashion brands can offer cheap, low-quality collection up to 36 times a year. However, low prices come with hidden costs.?Fashion industry alone is now the third-largest polluter worldwide after fossil fuels and agriculture (ClimateTrade, 2023). As climate change, environmental degradation, and social inequality become urgent global challenges, a new generation of consumers—especially Millennials and Gen Z—is pushing for profound change in the industry. Global Sustainability Study 2024 by Simon-Kucher show that consumer demands are increasingly shifting toward more sustainable and responsible practices, with sustainability transitioning from a "nice-to-have" to a standard evaluation/purchase criterion (Von Der Gathen et al., 2024). Consumers are sending a clear message: sustainability, once seen as a secondary concern, is now essential for long-term business success. Industry experts agree that in the future, sustainability won't just be an option—it will be a fundamental requirement for building brand loyalty and trust (Granskog, Lobis & Magnus, 2020).
Currently the market is seeing a growing influence from Millennials and Gen Z, who are increasingly eco-conscious and mindful of the environmental and social impact of their fashion choices. Ipsos’ survey shows that as much as 70% of consumers tend to buy from brands, whose values align?with their own (Willige, 2021). Moreover, 80% of consumers across generations are willing to pay more for sustainably produced or sourced goods. Some consumers are willing to pay on average 9.7% sustainability premium, even as cost-of-living and inflationary concerns weigh (PwC, 2024).
In the realm of sustainable fashion, the modern consumer is particularly focused on two key areas. First, the methods of production, which include ethical material sourcing, the environmental impact of manufacturing, and the working conditions under which products are made. Second, they care about a product's entire lifecycle, from its durability and use to its disposal or recycling at the end of its life. Let’s explore how these concerns reshape consumers behavior and what expectations the conscious buyer is setting for business.
Methods of production
Consumers are increasingly setting high expectations for sustainable fashion production, pushing brands to adopt practices that align with environmental and ethical values. The expectations of ethical manufacturing revolve around several key areas.
Demand for sustainable materials
Conscious shoppers are prioritizing brands that use sustainable materials such as organic cotton, recycled polyester, Tencel, and other eco-friendly fabrics. A study conducted by McKinsey highlights that 67% of consumers consider the use of sustainable materials to be an important purchasing factor (Granskog et al., 2020). They expect companies to minimize their reliance on virgin resources and avoid harmful synthetic fibers that contribute to pollution, microplastics, and high carbon emissions.
Innovation will play a crucial role in meeting the demands of tomorrow’s fashion consumers. Emerging materials like plant-based leathers, recycled synthetics, and biodegradable fibers are gaining traction, and consumers are drawn to brands that incorporate such innovations into their designs. Tech-driven eco-friendly practices, including 3D printing and on-demand manufacturing, is also appealing as it reduces waste and overproduction.
Packaging
This year’s research conducted by Bain & Company highlights the growing importance of packaging in consumers’ perception of sustainability. 60% of consumers care about the environmental impact of packaging (Blasberg et al., 2024), raising the pressure on companies both for recycled packaging and for the recyclability of their packaging.?Because consumers care about what happens to their waste, companies can distinguish themselves by incorporating renewable materials like bioplastics derived from plants, paper, cardboard, and other natural fibers, which are biodegradable or compostable. Another option is take-back schemes, where consumers return packaging for reuse or recycling.
Ethical labor practices?
Ethical production is supposed to ensure that workers in supply chains are treated fairly, compensated justly and have safe working environments. The Vogue Business Index shows that consumers have nearly equal concern for brands’ social policies as their environmental ones with 53% of shoppers valuing brands actions on labor rights while making a purchase (Fig. 1, Cernansky, 2021).
A study by Deloitte supports this trend and shows that one in three consumers stopped purchasing certain brands last year because of ethical or sustainability-related concerns (Deloitte, 2023). Yet the fashion industry is lagging behind to respond to these trends with only 35 % of ranked luxury brands publicly encouraging suppliers to allow trade unions to form (Cernansky, 2021).
Nevertheless, the pressure is growing from consumers, advocates and policymakers for fashion to approach its sustainability efforts in a way that includes ethics and the rights of workers in the supply chain. Even though various organizations track supply chain transparency and labor policies the real industry-wide transparency remain elusive. While many major brands issue statements about valuing workers, yet few have policies in place to safeguard those workers or their basic human rights, according to experts (Cernansky, 2021).
Digital Transparency and Traceability
Tech-savvy consumers are demanding full transparency from brands about the production cycle of the products they buy. Shoppers expect detailed information on the origin of raw materials, environmental impact of production processes, and the treatment of workers involved. Digital tools like blockchain technology, product digital IDs, and QR codes are increasingly being used by companies to provide traceability and validate environmentally conscious and ethical claims.
By scanning a product’s tag or label, consumers can access information on how it was made, who made it, and how to care for it in an environmentally responsible way. Brands like Chloé and Stella McCartney have started using digital IDs to track the lifecycle of their products and ensure that consumers are informed and engaged in sustainable practices.
Certifications and Standards
领英推荐
Conscious consumers expect brands to meet stringent sustainability standards and nearly 70 % purchasers conduct at least some research before trusting a brand's sustainability claims (Von Der Gathen et al., 2024). Finding information on sustainability might a be a jungle for many customers and they seek reassurance through certifications that validate the ethical and environmental integrity of their products. McKinsey’s research shows that customers rely heavily on brands websites, product tags and certification in their search (Albella, et al., 2022). Certifications in sustainable fashion establish clear standards that brands must meet to be deemed environmentally and socially responsible. These standards cover various aspects, including material sourcing, production processes, labor practices, and overall ethical conduct. Certifications from recognized organizations, such as GOTS (Global Organic Textile Standard), Fair Trade, and OEKO-TEX, are increasingly important and have been developed to help consumers spot sustainable fashion more quickly.
Product's Lifecycle
The rise of consumer concerns about a product's entire lifecycle, are leading to a continuous change of shoppers’ behavior with following trends getting traction.
Durability and Longevity
Fast fashion’s model of cheap, disposable products is facing significant pushback from tomorrow’s consumer. Durability and longevity are becoming key factors in purchasing decisions, with a preference for well-made, high-quality items that can last longer. Tomorrow’s consumers are also more likely to repair, resell, or repurpose their clothing rather than throw it away (Deloitte, 2023).
Secondhand and Circular Fashion
Consumers of the future are showing a growing interest in secondhand shopping and circular fashion, motivated by a desire to reduce waste and encourage reusability (Deloitte, 2023). Platforms like HEWI, Vestiaire Collective, Farfetch Pre-Owned, and 1stDibs, which facilitate buying and selling of pre-owned designer items, have surged in popularity.
Another way consumers can extend the life of their products is through take-back programs offered by brands. These initiatives allow manufacturers to repurpose or resell items from previous collections, promoting sustainability.
Max Bittner, CEO of Vestiaire Collective with over 10 million members worldwide, believes that current Gen Z's habits of buying and selling pre-owned clothing are a strong indicator of future consumption trends (Lobis & Toriello, 2020).
It is worth mentioning, that circular fashion goes beyond just buying secondhand. Actually, each stage of a product's lifecycle offers opportunities for circularity like rental, upcycling, and clothing swaps (Fig. 2. Saenz et al., 2022).
Consumer Paradox: a driver or a roadblock?
Despite growing awareness of sustainability, consumers themselves are often seen as a significant roadblock in the adoption of sustainable practices. Consumers frequently preferer newness. There is often a perception that newer products are superior, whether due to the allure of new styles or the assumption that older products lack novelty, functionality. Moreover, many consumers remain unaware og the long-term value of the environmental and ethical benefits. Another issue is modern consumers often prioritize convenience, which can conflict with the principles of sustainability. For example, repairing a product or seeking out a second-hand alternative can be more time-consuming or logistically difficult than simply purchasing a new product. Furthermore, in some cultures owning more, updating frequently and owning the latest styles is a status symbol and associated with success. This emphasis on consumerism can make it difficult for sustainable brands to gain traction. Shifting consumer attitudes to value longevity represents a major cultural change that requires time and dedicated effort.
Unlocking opportunities in sustainable business with People Integrated
The growth of sustainable business practices offers new pathways for innovation and expansion. Companies embracing sustainability benefit from enhanced reputations and the ability to attract top talent, especially among younger generations who are drawn to purpose-driven organizations. This alignment between values and employee aspirations can become a competitive advantage. However, transitioning to sustainable practices requires skilled individuals to drive change.?
People Integrated?specializes in recruiting talent with expertise in sustainability, from supply chain design to waste management, ensuring businesses have the professionals needed to lead key initiatives. Beyond operational challenges, consumer behavior can also hinder adoption. Companies need marketing experts who can effectively communicate the value of sustainable products. People Integrated can connect businesses with digital marketing professionals who excel at reaching today’s eco-conscious consumers.?Finance teams also need to align models with sustainable practices. People Integrated finds finance professionals who understand how to balance green business costs with long-term financial gains, helping businesses innovate and explore new revenue streams. As younger generations demand more seamless digital experiences, sales teams must adapt. People Integrated identifies sales professionals equipped to develop pricing models and master sales techniques suited to sustainable products. In addition, legal and compliance experts are crucial for navigating regulations around sustainability. People Integrated helps businesses find professionals who can create governance frameworks aligned with sustainable business model. Visionary leaders are recognizing the enormous potential of decoupling economic growth from the consumption of virgin resources.?People Integrated?sources executives who understand the strategic opportunities within green business, from technological innovation to energy efficiency. As the shift to sustainable business grows, so do new roles in recycling, remanufacturing, and reverse logistics. People Integrated is adept at finding talent for these emerging areas, ensuring companies can build a workforce for the future.
The shift towards a sustainable business is complex, requiring systemic and scalable solutions that are driven by the right people.?People Integrated?is a trusted partner in this transformation, ensuring that businesses can attract, develop, and retain the talent needed to thrive in a sustainable business.
Summary
The rise of fast fashion has been driven by consumer demand for quick access to trendy styles, often at the cost of environmental and ethical concerns. The industry is now the third-largest polluter worldwide. Millennials and Gen Z are pushing for more sustainable practices. Eco-friendly materials, ethical production, transparency, and circular fashion models are no longer just trends—they are becoming essential components of a brand’s long-term success. While many are willing to pay a premium for sustainable products, overcoming convenience-driven consumer habits remains a challenge.
References:
Executive Search Consultant at People Integrated
1 个月Tak for hj?lpen Katrine ?rbo Simonsen, Anne Toksvig Bjerg :)