61% People Choose Price Over Sustainability: What Does That Mean for Business?

There has been a push for sustainability in the fashion industry for some time. However, soaring inflation and economic upheaval for the last few months have forced a change in buying habits. How is inflation impacting consumer sentiment around the sustainable fashion industry, and what should retailers prioritize as consumers tighten their spending? Nosto’s recent study tried to find the answers.

The last few years have seen significant climate action by people worldwide. While governments and organizations are taking certain measures, ordinary people have taken specific steps. For example, sustainable fashion has seen much demand over the last decade as public awareness about the industry’s impact on the environment grows. Mindless consumerism attracted severe criticism from activists and governments. Simultaneously, consumers, too, are re-evaluating their values and focusing more on sustainability.

All that said, the last few months have seen a significant disruption in the world economy. Several factors have led to rising inflation, and people are already feeling the impact. Experts are predicting that the recession is almost here. Consequently, consumers worldwide are forced to change their spending habits.

So, how is the economic crisis impacting consumer sentiment around the sustainable fashion industry? Is it sustainable? And what should retailers prioritize as consumers tighten their spending? Nosto recently conducted a studyOpens a new window to find the answers.

Price Takes Precedence Over Sustainability

The study found that 57% of respondents still want the fashion industry to be more sustainable. That said, 61% are more concerned about the price as inflation grows. Even high-income groups tend to agree with this. Further, 55% felt sustainable fashion products were too expensive. Just about 39% said they would pay higher prices for sustainably-made versions of a fashion item.

Does it mean retailers may have to offer more accessibility to help consumers continue embracing it, given that inflation is worsening?

See more: Resilience and Sustainability in Post Pandemic Supply Chains: Is AI Adoption the Answer?

Shoppers Are Prepared To Wait Longer for Greener Deliveries

One way retail businesses can enable consumers to support sustainable products at reasonable costs is through their delivery services. For example, 41% of consumers would pay more for greener deliveries of online orders. But 54% said they had no problem with slower deliveries if it would cut the number of truck journeys, reducing carbon emissions. It is encouraging to see consumers’ preparedness to wait for the sake of sustainability, given the increasing expectations of fast deliveries in the fashion industry.

People Don’t Want to Pay for Returns But Are Receptive to Ways of Preventing Them

Returns are one of the biggest concerns in the fashion industry and a strain on the environment. Return rates heavily cost the retailers and the environment. Many brands have even started charging customers for returns to discourage it. 

However, for consumers, charging for returns is the least favorite way of discouraging it. That said, 49% agreed that returning purchases was bad for the environment. They also showed good receptivity to other ideas that don’t involve a cost to prevent returns. Some of these ideas were:

• Showing user-generated content (UGC) to reflect products better
• Making sure the product information was clear
• Making it easy for buyers to inquire about items online. For example, live chats.

Over 60% of respondents considered each of these ways feasible, indicating that it is possible to address the returns crisis without hurting sales.

Customers Want To Keep Clothes Longer But Don’t Think Retailers Make It Possible

While returns are a problem, the study found that many people don’t think that clothes are made to last. About 58% of consumers wanted to keep clothes for a long time to help the environment. However, 54% thought they were not made to last. This seems to have increased the demand for repair services. About 42% had to throw the clothes away because they couldn’t get them repaired, and 60% thought offering repair services would make fashion sustainable.

Do the retailers have a gap to create or push for repair services? Will they figure out a way to solve the current problems associated with offering repair services?

Broken Sustainability Promises Force Consumers to Look to Others for Guidance

Consumers always scrutinize claims made by brands. Even many well-known brands come under the lens for greenwashing. Last year, the Dutch CRA investigated H&M and Decathlon for neither sufficiently explaining nor proving the sustainable features they claimed about their products. Naturally, consumer trust has been dwindling over the last few years.

According to the study, 54% of consumers didn’t trust fashion brands’ claims about their commitments to sustainability. About 68% of those who expect fashion to be sustainable paid more attention to what others said than what the brands said. Consumer skepticism is present, and people want proof of sustainability before purchasing a product. With people trusting other shoppers, brands may have to consider leveraging social proof to allay consumer doubts.

Shoppers Need More Clarity on Product Sustainability

A lack of clarity over what is sustainable doesn’t help consumers’ doubts. The study found that 55% found it confusing to understand which clothing items are sustainable. Even 68% of the people who want sustainability and are more likely to have a better idea of what to look for couldn’t identify whether a product was sustainable.

The problem for brands is that sustainability covers several complex issues, from where raw material is sourced to how the clothes are packed and shipped. Brands can’t just label the items “sustainable” without knowing each step in the supply chain. Additionally, they are rightly worried about the problem of misleading consumers.

So, how can brands clearly communicate which of their products and elements are actually sustainable so that it helps consumers identify them?

See more: 5 User-Generated Content Ideas To Turn Customers into Fans in 2021

Conclusion

Overall, the soaring inflation has exacerbated the financial barriers that support sustainable fashion. Clearly, to encourage consumers to embrace sustainable fashion, retail and fashion businesses must increase the affordability and availability of relevant options, especially as inflation prevails. 

Consumers want fashion to be sustainable. While they are looking for brands to make it possible, they are also willing to take responsibility should the relevant options be accessible.

Fashion retailers can take the following steps in response to consumer demands:

• To enable greener deliveries, retailers can offer options that take longer delivery times.
•  Instead of charging for returns, brands can find other ways to reduce returns.
• To help customers keep the products longer, retailers can introduce repair services or improve awareness of such services.
• Brands should look to leverage UGC to alleviate doubts and build trust.
• Retailers making sustainability claims should also look toward other methods of building relationships with consumers.
• Retailers should be clear in their communication to indicate to people what is sustainable and what is not in their merchandise.

Taking these specific steps will allow consumers to continue to support sustainable fashion and the industry to grow.

What steps have you taken to support consumer sentiments around sustainable fashion? Share with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

Image source: Shutterstock

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