Where are the business opportunities for companies? What kind of "ethical consumption" do consumers want to practice?

Recently, Dentsu Inc. announced the results of its "Ethical Consumption Awareness Survey 2020" (hereafter, this survey) ( release here ). Based on these findings, we will explain the significance and methods for companies and society to engage with "ethical consumption" in a series of articles.

This installment introduces consumer attitudes toward ethical consumption revealed by the survey results while exploring business opportunities for companies.

<Table of Contents>
▼ Ethical Consumption: A Business Opportunity Connecting Companies and Consumers
▼Food, Automotive, and Daily Goods Industries Rank High in "Ethicalness"
▼What Ethical Products and Services Do Consumers Want to Buy?
▼"Accessibility" and "Benefits" Are Keywords for Ethical Consumption

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Ethical Consumption: A Business Opportunity Connecting Companies and Consumers

As mentioned in our previous article, we define ethical consumption as "consumers engaging in purchasing activities while considering solutions to social issues or supporting businesses tackling such challenges." Incidentally, "ethical" is an adjective meaning "based on ethics." Consumption, an indispensable part of our lives, is one of the most accessible ways to engage in ethical behavior. Moreover, ethical consumption directly connects to the 12th of the 17 SDGs (Sustainable Development Goals): "Responsible Consumption and Production."

However, even if consumers want to practice ethical consumption, they cannot buy such products or services if companies do not offer them. From a corporate perspective, providing ethical products and services can boost sales and enhance the company's image as one fulfilling its social responsibilities. Survey results show that 54.0% of respondents believe it improves corporate image. This sentiment is strongest among women aged 40-59, reaching 64.0%.

So, how can companies specifically seize ethical consumption as a business opportunity, enhance their corporate image, and contribute to the SDGs? To find hints,
・The state of ethical consumption across industries
• Ethical products and services consumers want to buy
We present insights from this survey.

Food, automotive, and daily goods industries have high "ethical ratings"

First, let's examine the actual "ethical level" of each industry as perceived by consumers. The survey results show that the food, automotive, and daily goods industries are perceived as "actively engaged in ethical consumption." Conversely, industries like energy/infrastructure (electricity, thermal power, water), finance, and travel show a gap between current engagement levels and consumer expectations, indicating high anticipation for future initiatives.

The three industries perceived as having high ethical standards mentioned earlier are sectors with many familiar products and services, such as organic foods, eco-friendly cars, and environmentally conscious detergents. Conversely, the three industries with high expectations for future initiatives likely have a pre-existing image of having significant societal impact or environmental influence.

Next, let's examine the reality of ethical consumption: "How much are people actually buying?" and "Do they want to buy?" The survey results show that the food industry has the highest percentage for both purchase intent and purchase experience. Conversely, the energy/infrastructure sector (electricity, thermal power, water supply) has a significantly high purchase intent percentage but low purchase experience.

In the food industry, where purchase opportunities are frequent in daily life, it appears that many people engage in ethical consumption unconsciously, even if they are not fully aware of the definition of the term "ethical consumption." The survey also indicates that, while varying by industry, a significant number of consumers generally feel "I haven't bought it yet, but I'd like to try," meaning ethical benefits can become a "reason to buy." This suggests that by effectively providing products and services ( ), companies can gain a head start in connecting with ethical consumption.

What kind of ethical products and services do consumers want to buy?

While saying "We want to deliver ethical products and services!" is straightforward, the social issues involved vary widely. Therefore, we surveyed consumers across 11 industries—food, daily necessities, apparel, home appliances, cosmetics/beauty products, automobiles, electricity/heat/water, travel, furniture, housing, and finance—about the products and services they wish to purchase ethically.

Next, let's look at the food industry, which had the highest percentage for both purchase intent and purchase experience. "Food in renewable containers," "Food contributing to reducing food loss," and "Non-genetically modified food" ranked high. "Fair trade food," "Food considering animal welfare," and "Vegan/vegetarian-friendly food" ranked lower. While awareness of these lower-ranked products is growing compared to before, the number of people wanting to purchase them remains limited.

Finally, let's introduce the results for the apparel industry. Recently, the Ministry of the Environment and 11 apparel and textile companies launched the "Corporate Consortium on Fashion and the Environment (tentative name)" aiming to develop a campaign following Cool Biz. In this industry, which is gaining attention from an ethical consumption perspective, "domestically produced clothing," "clothing made from natural materials," and "resource-saving clothing" ranked highly.

Conversely, "clothing using regional traditional techniques," "clothing based on sustainability concepts," and "rental clothing" ranked lower. While terms like "sustainable fashion" and "subscription fashion" are increasingly heard, it appears that actual purchase intent remains limited to a segment of consumers sensitive to such movements.

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Ethical consumption hinges on "familiarity" and "benefits"

This survey suggests that the ethical consumption practices consumers want to adopt are those that are "familiar to them through media or actual store experiences" and "offer clear benefits for both themselves and society."

While approaches to ethical consumption may vary across industries,
・Starting initiatives based on social issues gaining attention in media
• Ensuring products and communications align closely with the company's business and resonate with consumers
• Communicating clearly about the benefits for both consumers and society
These steps are likely to be the first toward gaining consumer acceptance.

Simply incorporating the "ethical" essence may not immediately lead to blockbuster products or enhanced corporate image. However, as the world advances various initiatives toward a sustainable society, ethical consumption is likely to become more widespread and a significant factor in purchasing decisions for goods and services. By starting initiatives early, companies can contribute to society and, in the long term, capture consumers' hearts as "ethical companies."

Next time, we will introduce the results of cluster analysis revealing consumer trends from this survey and explore key points for companies engaging in ethical consumption.

[Overview of Ethical Consumption Awareness Survey 2020]
・Target Area: Nationwide, Japan
・Respondent Criteria: Men and women aged 10 to 70
・Sample Size: 125 individuals per gender/age group, totaling 1,000 respondents weighted to reflect population demographics
・Survey Method: Online survey
・Survey Period: November 18–25, 2020
・Research Agency: Dentsu Macromill Insight, Inc.
*Percentage composition (%) is rounded to the nearest hundredth. Therefore, the total may not always add up to 100%.