A year or so back a different survey found that an impressive 
percentage of US consumers would pay more for energy-efficient 
low-emissions cars (though what they got was more SUVs and a heavy 
shove to make them easier to buy than anything else). The quite 
common idea (here too) that most people just don't care about 
anything other than their own selfish and short-sighted concerns just 
isn't true - a rather large number do care, and are prepared to do 
something about it, and this despite a massive and constant barrage 
of soporific pap from a kept media and a kept everything else too, 
plus hundreds of billions in corporate advertising and PR budgets, 
all designed (well-designed) to keep them obediently asleep. See for 
instance:
"War On Truth - The Secret Battle for the American Mind", An 
Interview with John Stauber, Published in "The Sun", March 1999
http://www.mediaisland.org/thewarontruth.html

These growth figures below are very persuasive.

Keith


Good News: Consumer Revolution

A late July New York Times article says that concerned consumers are 
now supporting a specialized $230 billion/year market in the US. This 
includes 68 million Americans (growing by 30% per year) who regularly 
buy products based on environmental and social ethics. The market 
includes everything from energy-efficient appliances and solar panels 
to organic food to Yoga tapes to ecotourism. A survey found that 90% 
of these consumers say they are willing to pay more for products from 
companies that share their values of long-term sustainability for 
society and the environment.


http://www.organicconsumers.org/organic/cultural_creatives.cfm

America's 50 Million Cultural Creatives Impact the Marketplace

July 20, 2003

They Care About the World (and They Shop, Too)

By AMY CORTESE

The New York Times

THERE'S a name floating around for consumers who worry about the 
environment, want products to be produced in a sustainable way and 
spend money to advance what they see as their personal development 
and potential.

It's Lohas, which may sound like a disease but is an acronym for 
"lifestyles of health and sustainability." The name was coined a few 
years ago by marketers trying to define what they regarded as a 
growing opportunity for products and services that appeal to a 
certain type of consumer.

It may be the biggest market you have never heard of, encompassing 
things like organic foods, energy-efficient appliances and solar 
panels as well as alternative medicine, yoga tapes and eco-tourism. 
Taken together, they accounted for a $230 billion market in 2000, 
according to Natural Business Communications, a company in 
Broomfield, Colo., that publishes The Lohas Journal and is credited 
with introducing the term. The company, which will release an updated 
estimate later this year, figures that the total market has grown by 
double-digit percentages annually.

In its second annual study of the Lohas market, conducted earlier 
this year, the Natural Marketing Institute, a research and consulting 
firm in Harleysville, Pa., estimated that 68 million Americans, about 
a third of the adult population, qualified as Lohas consumers, the 
kind of people who take environmental and social issues into account 
when they make purchases. That was up from 30 percent a year earlier.

Ninety percent of the Lohas consumers said they preferred to make 
purchases from companies that shared their values, and many said they 
were willing to pay a premium for products and services they 
considered sustainable, which means that they are made in a way that 
minimizes harm to the environment and society.

Consumers are spending more in categories like organic foods and 
alternative medicine. But even some sympathetic observers are 
skeptical about attempts to define such a sprawling market. "I've 
been listening to this conversation for 15 years," said Joel Makower, 
founder of GreenBiz.com, which tracks business and environmental 
issues.

"We're still waiting for this great wave of purchasing changes around 
values and desires to make the world a better place," Mr. Makower 
said. "The only thing that's changed is now we have an acronym."

There is, in fact, a yawning gap between what consumers say in 
surveys about what they will buy and the actual sales data. For 
example, in a Natural Marketing Institute study, 40 percent of the 
Americans surveyed said they had bought organic food and beverages, 
but only 2 percent of the $600 billion in food and beverage sales in 
the United States comes from organic products.

Steven W. French, a managing partner at the institute, attributes the 
gaps to the fact that while consumers base some purchasing decisions 
on values, factors like convenience and price also matter.

Education and availability are issues, too. For instance, renewable 
power may not be available from a local utility, and even if it is, 
consumers may not be aware of it.

Still, there is no doubt that some Lohas segments are booming. Sales 
of natural products, including food and personal care products, were 
$36

billion last year in the United States, up from $14.8 billion five 
years earlier, according to the investment bank Adams, Harkness & 
Hill. And yoga, alternative medicine and energy-efficient appliances 
are finding mainstream appeal.

Lohas proponents build on research indicating that a cultural shift 
is under way that could have significant impact on consumer 
purchasing behavior.

Paul H. Ray, executive vice president of American Lives Inc., an 
opinion polling company, has surveyed people about their values and 
lifestyles for more than a dozen years and has identified an emerging 
subculture that he calls the cultural creatives. This group, which 
Mr. Ray said included 50 million people in the United States and 
Europe Ü and is the subject of "The Cultural Creatives," his book Ü 
is socially conscious, involved in improving communities and willing 
to translate values into action, he said.

Not surprisingly, the cultural creatives tend to overlap with Lohas 
consumers. "What you're seeing is a demand for products of equal 
quality that are also virtuous," said Mr. Ray, who is now co-chairman 
of an institute within the Global Academy, a nonprofit group, that 
focuses on long-range societal issues. Speaking of similarities 
between his research and that of the Natural Marketing Institute, he 
said, "You get to the same phenomenon regardless of how you get into 
it."

RoperASW, a research and consulting firm, figures that 16 percent of 
adult Americans are "green" consumers and that an additional 33 
percent of the population can be persuaded to base their spending on 
their environmental values. The firm has also tracked consumers' 
rising interest in health and alternative medicine and in buying 
brands that are aligned with their values.

These studies suggest that companies may benefit from considering 
values as well as conventional demographics, like age and income, 
when trying to understand customers. "This is a mind-set change for 
how companies and consumers look at products and services," said Mr. 
French of the marketing institute.

 
RATHER than looking at discrete product categories like cars, he 
said, it is more important when dealing with the Lohas market to look 
at the common factors linking diverse product groups Ü for example, 
at cars, energy and household products that are perceived as better 
for the environment and society.

The Lohas Market Trends Conference, held in June in Broomfield, 
Colo., drew nearly 450 people. Organized by Natural Business 
Communications, it offered business sessions punctuated with yoga 
classes and massages, and meals were planned by Mollie Katzen, the 
author of best-selling vegetarian cookbooks, including "The Enchanted 
Broccoli Forest."

Though most of the companies represented at the conference were small 
or clearly identified with the healthy lifestyle market, like 
Patagonia and Tom's of Maine, there was also interest from 
corporations that are not squarely in that market.

Sheri Shapiro, the assistant marketing manager for the Escape sport 
utility vehicle at Ford Motor, was there to learn about the Lohas 
consumer. When her team was researching the potential customer base 
for a hybrid version of the Ford Escape planned for next year, it 
kept running across the term "Lohas."

"We didn't know exactly what it was," Ms. Shapiro said. So when she 
heard about the conference, she decided to attend. As it turned out, 
she said, "the values and attitudes of the Lohas customers matched 
our own research."

Or consider Staples, the office products retailer. It didn't send 
anyone to the conference, but it has added more products with 
recycled materials and has promoted recycling programs at its stores 
for printer cartridges and consumer electronics products.

"We are really taking a look at sustainable business practices and 
what our social and environmental commitments are and how we convey 
that to customers," said Mark Buckley, vice president for 
environmental affairs at Staples, based in Framingham, Mass.

As more large corporations introduce environmentally friendly 
products or acquire organic brands, they often find themselves in 
unfamiliar territory. "Companies realize they have a different kind 
of customer, that conventional selling strategies are a complete bomb 
with," said Mr. Ray, at American Lives. Large companies, he added, 
"are used to thinking in mass-market ways."

People in the Lohas crowd tend to be well informed, discerning and 
skeptical of advertising claims, the institute says. Ms. Shapiro said 
she would think differently about marketing to this group.

"There might be different strategies and tactics to market to them," 
she said, like advertising in health and lifestyle publications and 
aligning the marketing message with Lohas values. "Whether it's 
vitamins or hybrid vehicles, it's the common values that really tie 
together all of these products."

That is where Lohas comes in. Tying them together makes sense, 
because "it's helpful to define an industry," said Lynn Powers, 
president of Gaiam, which sells products like organic cotton sheets, 
yoga tapes and solar panels through its catalogs and Web sites.

Still, the conference on Lohas illustrated how unwieldy a concept it 
can be.. In the main exhibit hall, makers of healthy candy bars, 
meditation videos, energy turbines and therapies labeled as cancer 
cures promoted their wares side by side.

Frank Lampe, the editorial and conference director at Conscious 
Media, which owns Natural Business Communications, acknowledged that 
Lohas might be too sweeping a term. His company is refining its 
definition of the Lohas market and may drop some categories. "We've 
tried to get too many things into the space," he said. 

Copyright 2003 The New York Times Company


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