Green products are a rarity in almost every category of goods and services marketed in India.
Marketers should grab this opportunity
Green products are a rarity in almost every category of goods and services marketed in India. Eco-tourism, green buildings, environment friendly hotels, organic food, etc account for a minuscule percentage of our economy whose rapid growth is driven by consumption expenditure, contributing to about 64% of the GDP. Marketers should have grabbed this emerging opportunity for sustainable and profitable growth.
Unfortunately, most businesses have approached green marketing half-heartedly. While CEOs routinely highlight their environment-friendly initiatives and achievements in reports and media briefings, these are hardly ever leveraged to differentiate the firm and its offerings in the marketplace. Many such initiatives relate to manufacturing plants and back-end operations, e.g. water and energy conservation, social forestry, solid waste recycling, etc, and have largely remained a socio-legal obligation.
Less than 40% of websites of the top 500 businesses in India have a web page on environment. If information on corporate websites is seen as a reflection of priorities, most businesses are unlikely to market green products in the near future. This is baffling when one considers universal concerns about climate change and global warming. Will markets change?
Markets for green products will evolve through a favorable convergence of macro-environment forces comprising of legislations, economic incentives, consumer support and technological breakthroughs. These include multi-point fuel injection systems, low emission engines and unleaded fuel for automobiles, pollution control devices for cement and thermal power plants, alternatives to CFC-based refrigerants, etc. Consumer preference will be the most critical factor to determine the growth of green products in India.
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Several initiatives will be required to grow these existing niche markets to attract the mainstream consumers. Marketers will have to make green products affordable. These seemingly incongruent objectives can be achieved through technological innovations. These products have been promoted as conspicuous consumption rather than products for mass consumption. There is neither much information nor many affordable choices for these products.
Education programs, inclusion of environmental topics in curriculum and information campaigns by the government, media, consumer forums and NGOs have shown encouraging results around the country. Awareness and a positive attitude towards green products will create a favorable pre-disposition towards eco-friendly products. Moreover, economic incentives must also help to accelerate the creation of markets for green products.
Consumers are more aware about issues
Today’s environmental issues are a matter to be solved by all of us across the world. As many countries holding a prominent position in environmental technology use international environmental regulation as a trade barrier, the environmental issues as well as technology development are key requirements for a company’s competitive advantage.
Green manufacturing and offices are being set up by various companies. Industries are using more and cleaner fuel technologies that are less polluting in nature and thus abiding by the pollution norms. Their reputation not only increases with the pollution control board but also with the customer. In the not-too-distant future, environmentally benign manufacturing will become one of industry’s greatest strategic challenges, not only from an engineering perspective, but from a business and marketing perspectives as well.
Many large, multinational companies are cognizant of impending overseas environmental regulations and growing consumer demand for a new generation of environment-friendly products, and they are beginning to formulate their response.
The selling points for products have traditionally been features, colours, design, technology and method of production. But due to the continuous efforts by environment agencies and environmental awareness drives, the consumers today are aware of the problems that are being posed by non-environment friendly products.
The fact is evident from the messaging in various promotional materials of companies, which proudly present the fact that they are environment friendly or have environment-friendly processes. Companies are adopting green technology and methods such as water and electricity conservation techniques, rainwater harvesting, eco-friendly waste disposal and other processes.
Trends in the industry in terms of products and services include use of paper bags instead of plastic bags, use of CNG, biodegradable detergents and soaps, environment-friendly sprays, use of natural dyes, organic vegetables and fruits, non-polluting fuel and HCFC-free refrigerators are ruling the markets today.
There is a new breed of green-minded consumers who are opting for these environment-friendly products. Currently, the number of these green consumers might be less but the future holds a strong possibility of increase in these Green consumers. So if you still believe the fashion experts who say pink is the colour of season, I would say green is the colour for future.
