Last consumer research and trend research from the leading retail think tank PSFK shows what consumers expect responsive and responsible productionwhen they want it as they want it. The document provides retailers and brands with an understanding of the competitive advantage of using sustainable business practices. In particular, the researchers found that corporations can meet the needs of consumers by innovating not only product design but also end-user experience through technological advances, operational efficiency, digital behavior and innovation in a sustainable business model.
Preparation of business justification for sustainability
Sustainability efforts provide business benefits and promote corporate social responsibility. Partly driven by continuing disruptions in the global supply chain, brands and retailers import production and design processes closer to the user – both physically and digitally. The new strategies help to identify unmet market needs, allow for improved customization on a scale and bring products closer to their end users.
The Harvard Business Review reports that built-in sustainability efforts clearly lead to a positive impact on business performance. This supports PSFK’s findings that new, on-demand and local production techniques save transaction costs, give companies more control over production and provide more ethical and sustainable supply chains.
A quantitative PSFK survey of U.S. buyers shows:
- Consumers expect retailers and the brands they shop for to demonstrate responsible and sustainable practices. Consumers require manufacturers to take measures to protect the environment, such as sustainable sources of components and ingredients or the use of a production process that reduces waste. A PSFK study found that 3 out of 5 buyers in the US say they are influenced to buy products from companies that create a positive impact with responsible production.
- Users are willing to share data in exchange for a personalized product or experience, but many still need to be convinced of the benefits. While many people find what they are looking for when shopping, there are a significant number who need help finding products that are physically suitable for them. According to a study by PSFK, over 45% of buyers in the United States say they rarely or never usually find the perfect size, shape or fit.
- In addition, while buyers are interested in custom-made products on demand, there is a limit to the amount of personal information they wish to share today. 57% of US buyers say they would share only a small or moderate amount of data from brands and retailers to offer them the right size and shape. 14% of buyers say they do not want to share any data at all.
- To improve the overall CX and respond to real-time demand changes, companies are adopting strategies that shorten supply chains and adjusting production to reflect customer needs at the localized level. While many US buyers are happy that their goods are produced anywhere in North America (31%) (or even worldwide (15%)), many are looking for locally sourced products. A PSFK study found that 48% of US shoppers would prefer to buy from companies with a business strategy where they manufacture their products within 100 miles of where the shoppers live.
- Corporate social responsibility matters. With the growth of e-commerce, the impact of supply on the environment is also increasing. 43% of buyers in the United States are concerned or very concerned about the environmental impact of the supply and delivery of their online shopping. Only 7% say they are not at all worried about the company’s sustainability practices.
PSFK Buyers Survey in the United States
IN PSFK the quantitative survey was conducted in February 2022. The survey was a “census” balanced in terms of age and gender. Respondents had household incomes between $ 0- $ 200k.
For a full copy findings of the studycontact: [email protected]
For further insights covering Dynamic production strategiesplease see the full report from PSFK iQ Research: It is now available for download.