Retailers are facing a smarter, more mindful and often demanding consumer today. Multiple reports and studies have found that not only do consumers expect more from the brands they purchase from but will do research and pay more for what they want.
One of the leading consumer behaviors revolves around an expectation for companies to meet criteria that align with personal social values. Sustainability is a leading theme for the way many consumers shop today, with many consumers even looking to shop largely through resale and vintage retailers.
While the transition to a fully sustainable business is difficult, reports show that consumers are willing to pay a premium for sustainable businesses. According to research from Simon-Kucher & Partners, across apparel categories and consumer groups, the hypothetical premium paid would be a 15 to 30 percent increase for mission-driven brands and a 5 to 20 percent increase for profit-driven companies that incorporate sustainable practices. These findings were also found in a report from McKinsey & Co.
Concurrently, another recent report by Russell Reynolds Associates, found that 60 percent of shoppers look to retailers to be “part of the dialogue around social issues.” And further, consumers will distance themselves from brands that fail to embrace