Consumers in China Will Force Corporations to Address Sustainability Issues
For a firm looking to “green” itself, the traditional model has been the costs of brown vs. the costs of green. A simply apples to apples comparison that many used to determine whether the time and money should be invested to develop a product (portfolio or products) that were more environmentally friendly.
In areas like the automotive industry or construction though, the main impetus came from regulators who would mandate the standards. Firms who exceeded the standard by going LEED or developing a hybrid were of course forced back into the old equation of brown vs. green as going the next step was not required.
But, as we are seeing in many areas around the world, consumers are starting to push firms into taking steps that are neither mandated by a law, or are the most cost effective… and they can do this because money talks.
In essence, consumers have become the new force for change, as Brita, Starbucks, Dell, and others have learned the hard way. We are now witnessing where the big 3 auto firms in America are at risk of failing as a result of the past product decisions…
Where this is important for those operating in China, is simply that consumers in China are showing just how active they will become when a shared concern meets the right medium.
Starbucks in the Forbidden city. Dell Laptops with Flaws. Underpaid workers at McDonald’s.
More importantly though, by taking a step back and looking at the recent Kappa Girl story, by looking at the recent taxi strikes, and by seeing the response of average citizens last year during the Shanxi labor crisis, we were are able to see just how fast things can get out of hand in cyberspace. how fast, once activated, young internet users can spread a message, build support, and act.
Interestingly enough, if you were to poll this group, you would more than likely find they are very similar to the target audience of many brands. Young, lot of time on their hands, educated, and it is their young minds that marketers are trying to mold.
So, within this context, companies need to begin understanding that sustainability will no longer be an issue of finding the cheapest materials, or meeting a regulation, it will be meeting the expectations of consumers.
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