The 2010 Australian Organic Market Report shows consumer interest in organics growing strongly, with associated increasing activity from producers.

Released in late August, the report was independently researched and co-authored by the University of New England, along with Mobium Group who undertook a detailed analysis of the consumer market.

The analysis concluded that more than 60 per cent of Australian households would occasionally buy organic, a 20 per cent increase since 2008 and the the retail value of the organic industry would reach $1bn in 2010.

Read the News.com.au article

With the rollout of the first Australian consumer goods certified using Planet Ark’s Carbon Reduction Labelling program set for ALDI stores from October, consumers have another way to assess ‘green’ bona-fides.

The ‘foot print’ certification mark for products outlines the number of grams of carbon per 100 grams or millilitres of a product that is produced during its lifecycle - from growing the raw ingredients, to production, packaging, use and recycling or disposal of packaging.

The program also commits each manufacturer to reducing their carbon output.

In covering the launch, the Sydney Morning Herald says “Planet Ark is…betting the labels will give consumers more confidence about which products are environmentally friendly, and boost spending on those products”.

While Australian consumers continue to cry out for validation of social and sustainability marketing claims, with Mobium research showing that over 85% remain “skeptical about the claims made about products”, it seems that they are now being spoiled for choice.

With a few recent additions, there are now over 50 ethical, social, environmental and industry trust mark programs operating for various consumer product categories in Australia.
From Fairtrade to Organic and Energy Stars to Ethical Clothing more and more products are carrying one and in many cases more of these seals.

Recent findings from the latest Mobium Green-Tracker quarterly research shows that many consumers are now feeling overwhelmed and struggling to make sense of this proliferation.

Indeed far from assisting, the ‘label wars’ that are now emerging are leading to extra issues at the point of sale as shoppers seek to assess if one mark is better than another.

So a potential threat is emerging for the continued uptake of environmentally preferable products - buying green becomes ‘too hard’ for those less engaged – in particular the Leaning and Learners - as additional environmental and social trust marks enter the market.

With both consumers and retailers demanding more transparency in the source of their goods, as well increasing focus on employee wellbeing and equity, the Ethical Clothing Australia (ECA) program is ramping up its efforts to assist the industry and shoppers make good choices.

With high profile showcases at the 2010 Melbourne and Sydney fashion festivals, the social certification covers ‘no sweatshop’ validation and has attracted some of Australia’s leading brands including Collette Dinnigan, Mr K, Cue, Yakka, Jets and King Gee.

With Living LOHAS 3 data showing only one in four Australian’s being aware that environmental and social standards exist to assist them validate product claims, the launch of this consumer trust mark is off to a flying start.

ECA’s high profile activities are a good example of the promotional and awareness raising required from eco-labels to lift consumer awareness and meaning.

Mobium Research Director Nick Bez discusses the disconnect between what people say and what they actually do when it comes to the environment in the The Sunday Age feature; ‘We’re not as green as we seen (or would like to be seen)’.

Quoting widely from the latest Living LOHAS 3 research data, the article provides clues as to the challenges that Victorians face in doing the right thing more often.

Mobium’s work is backed by data from Sustainability Victoria and analysis from the University of Melbourne.

Go to the Mobium in the Media section to read the article

After months of hard work by the Mobium team, the third annual Living LOHAS© report series was released in late December.

The launch recieved coverage in The Age, Sydney Morning Herald, SBS News and 2GB, as well as a host of online sites.

Look out for further coverage in January and beyond, including the first issue of BRW.

More information is available here , as well as the www.lohas.com.au website

To request a detailed 12 page overview of Living LOHAS©3, click here

Over the past few months references to Mobium’s research and the power of the LOHAS approach have been highlighted in radio broadcasts to national and regional audiences.

With increasing focus from government and business audiences on engaging Australians to act on their concerns about personal, community and planetary health and wellbeing, LOHAS is increasingly being seen as a strong framework to assist in bridging the ‘green gap’ between what people say and what they actually do.

In November, Mobium Research Director Nick Bez was interviewed on Sydney station Eastside FM for its weekly feature ‘Sustainable Synergy’.

Bez outlined the LOHAS market, and the growing desire from Australians to lead healthier more sustainable lives in the context of the current issues around the ETS and other barriers to uptake.

Listen to the interview here

In mid December, Rebecca Gilling from Planet Ark was interviewed on the ABC National ‘Australia Talks’ program for its discussion on Green Christmas.

Gilling discusses how Planet Ark uses LOHAS to help the organisation consider program development in light of the differences between the four LOHAS segments defined in the Mobium Segmentation model.

Hear the whole discussion here

B&T Magazine recently published its sustainability focused ‘The Green Issue’ and with it assembled leading Australian marketers and researchers to contribute to the feature “Fifty Things you need to know about Being Green”.

Author, Kevin Johns explores best practice and highlights the do’s and don’ts.

Leveraging pre-release data from Living LOHAS©3, Mobium provides 6 of the 50 key points.

The LOHAS framework is continuing to gain momentum in Australian business circles – over the course of 2009, more and more organisations are embracing the broader view of personal, community and planetary health and wellbeing that LOHAS provides as a key platform, rather than a narrow view of sustainability that focuses on just the environment.

Following are the Mobium references. Living LOHAS©3 will be released in Decembre 2009.

02: 50% CAN’T NAME A BRAND WITH GREEN CREDIBILITY

There is a large void for many Australian’s when it comes to identifying brands and organisations who they perceive to have strong credentials for operating in an environmentally friendly, sustainable or ethical manner, says Nick Bez, Research Director at consultancy Mobium.

“From more than 22,000 people Mobium have surveyed over three years, consistently more than 50% of adult Australians cannot name a single organization that they believe satisfy this criteria.” he says.

“There is massive mind space available for brands who cannot demonstrate credible leadership and ongoing commitment in this space.”

08: DO YOU KNOW WHAT LOHAS STANDS FOR ?

There are few dedicated, independent consumer insights reports into the attitudes of Australian consumers when it comes to the environment and sustainability.

Mobium’s Living LOHAS (Lifestyles of Health and Sustainability) is currently regarded as the gold standard in many circles.

It is annual and represents a marketing framework which describes a group of individuals who seek to integrate healthier, more sustainable product and service options into their lives.

09: GFC DIDN’T HURT THE GREEN MARKET

Many commentators globally believed that the onset of the global economic crisis would spell the collapse of the green market.

Mobium tracking studies in February 2009 showed a re-weighting of concern about financial issues, but that individuals values and concerns for the community and environment were not impacted. This outcome has been supported by numerous studies from around the world including by management consultancy BCG.

39: THE LOHAS MARKET WILL BE WORTH $21Bn NEXT YEAR

In 2008 Mobium quantified the Australian LOHAS consumer market at $15 billion, up from $12bn in 2007. The forward growth estimates put the market at $21b by 2,010.

Note – based on the 2009 data, the LOHAS market in Australia is now worth $19 billion, and is on track to reach $27 billion by 2011.

40: TO ATTRACT STAFF BRANDS MUST HAVE VALUES

Nearly 75% of all Australian workers say that that ‘the values and practices (labour, health and safety, environment, community initiatives) of a company’ influence where they choose to work, which is up slightly on 2008, according to LOHAS.

This is particularly true in two of the four segments the report draws on - the Leader and Leaning segment (to a lesser degree) in particular, see these issues as crucial in achieving employment satisfaction. As these individuals have strong values around community and planetary issues they are looking to work with organisations who share their values.

The reports authors add “This issue is increasingly becoming a differentiator for organisations and is most important to those aged 30 - 45 who are moving into senior management roles. Moving forward strong sustainability credentials will be a key driver of recruitment and retention for many candidates.”

43: CONSUMERS ARE LESS WILLING TO PAY PREMIUMS

Australians are making environmentally preferable choices in more categories driven by more mainstream availability and increasing options becoming available.

And the researchers behind the LOHAS reports say that in many categories price premiums compared with conventional counterparts have dropped - as innovation drives new options at more accessible price points.

“In the current fiscal environment the importance of the price factor is evidenced by a 40% decline in 2009 compared with 2008 in the number of Australians who say that they are “willing to pay 25% more for products and services which are made in an environmentally friendly manner”. The willingness to pay premiums has eroded consistently from 2007.”

WME, one of Australia’s leading environmental publishers, interviewed Nick Bez, Mobium’s research director on his recent trip to the 13th annual LOHAS Forum, held in Boulder, Colorado in late June.

Moving beyond the green pitch
July 28, 2009

‘Green’ is losing its sting as a sales pitch on the back of growing skepticism about the claims and a decreasing willingness to pay a premium, says marketing researcher Mobium. Instead, a broader suite of personal, community and planetary benefits are in the frame.

Research director Nick Bez has just returned from the 13th annual LOHAS Forum in the US, which focused on Lifestyles of Health and Sustainability, a market sector valued at around $500 billion worldwide and $15 billion in Australia last year.

“I was one of 550 business people who attended the LOHAS Forum, which also included representatives from Wal-Mart, Coca-Cola, E-Bay, BMW and Frito-Lay,” said Bez.

“These companies gave a clear indication that the demand for healthier, more sustainable products and services is set to fundamentally change the way they market their products and they are planning a raft of sustainability initiatives set to re-invent the retail and brand landscape in the next three years.”

The conference heard from multiple speakers who said that the simplistic approach of slapping ‘green’ tags on products is well past its use by date.

“Green has been done to death - it is losing traction,” Bez said.

“The new wave approach is evidenced by recent campaigns from companies as diverse as IBM, Toyota and Target USA. In the future, marketers will need to communicate the personal, community and planetary health and well-being rather than narrower definitions revolving around green.”

Instead, we’re seeing the rise of campaigns such as IBM’s Smart Planet, Victoria’s black balloons that talk about cost savings rather than greenhouse gases, and the new pitch from Toyota about the Prius that focuses on efficiency and smart solutions.

“Understanding of environmental issues is very shallow. This is about making the intangible relevant and contextualising it back for consumers in a personal way,” said Bez.

Mobium research shows 85% of Australian consumers say they are often skeptical of the health and environmental claims made about products.

Mobium Group will be presenting at a number of conferences and events over the coming months, with new data from Living LOHAS 3 and key emerging trends and case studies to be highlighted:

FoodTech Connect 2009
- October 21 & 22 - Sydney

Get more information from FoodTech Connect website here

The Future’s So Bright - Green Sustainability Conference
- October 23 - Sydney

Presented by POPAI - this day long event will feature a live 2 hour panel session from Walmart head office and feature retail and sustainailbity leaders from Walmart and McDonald’s. Other sessions will provide emerging best practice for brands and retailers.

Get more information from Out of Home Media here

“Marketing to the ‘green’ consumer is extremely challenging, especially so in times of worsening economic conditions. The rhetoric suggests that the recession is killing off green products and services. However, check-out the newspapers, leading websites and current tv ads and you’ll find green marketing campaigns abound!”

That was the topic for discussion at the recent Ethical Investor, “Green Marketing Forum” held in Sydney and Melbourne in early July, 2009.

Mobium Group’s Andy Baker shared the stage at the Forum with AT Kearney Partner, Jeremy Barker, to address the topic: “Is green marketing immune to the recession?” and set the scene for a series of case studies from the likes of IBM, BodyShop, Living Edge Furniture, ideas company, Republic of Everyone, Choice Magazine, Planet Ark and Visy.

The combination of Mobium and AT Kearney research presented the results of consumer and stockmarket studies conducted during the worst of the global economic downturn to understand how the financial crisis was impacting consumer behaviour and corporate valuations.

The AT Kearney study found that companies with strong sustainability credentials had more resilient stockmarket valuations than their less sustainanable counterparts during the market turbulance of 2008, whilst Mobium presented data contrasting consumer responses from its 2008 Living LOHAS 2 study and its March Green-Tracker omnibus survey.

The Mobium study showed that whilst overall market participation in a range of more sustainable product categories has grown during the downturn, consumers’ wilingness to pay a premium for these products has been hit hard across FMCG, appliances and other key categories.

Ethical Investor has also published a series of Mobium Group articles looking at the affect of the Global Financial Crisis on consumer attitudes to sustainability. To take a read, go to the Ethical Investor website and search on ‘Mobium’.

Mobium Group’s Andy Baker is quoted in an article by Sydney Morning Herald marketing writer, Paul McIntyre.

In response to questions about consumers’ willingness to pay more for a greener TV set, Baker said, “the public appetite for green products had not waned during the downturn, although their preparedness to pay a premium had collapsed.

“Demand is there, absolutely, but don’t ask them to pay a massive premium for it,” he said.

“Sony’s use of the light bulbs is key to making intangible benefits tangible to buyers. They’ve probably been used too much now but it helps people make an informed choice and bring it back to a personal level.”

Read “World of flat-screen television recharged” in our media section

Mobium Group’s inaugural Green-Tracker survey reveals the number of Australians concerned by the impacts of global warming and climate change has dropped by almost 20 per cent since 2007.

Download press release

While almost three quarters (73%) of people remain concerned or very concerned about climate change, drought and water shortages remain the overwhelming issue for most Australians (86%).

However, Australians have also become less worried about drought and water shortages as the economic situation has worsened, with concern for this issue dropping 10 per cent in the past six months.

“While the fall in environmental concerns cannot be directly attributed to the economic downturn, naturally people do become more concerned about their personal circumstances when times are tough,” Mobium Group’s Research Director Nick Bez said.

“Our research shows three in five Australians (60%) are either concerned or very concerned about their job security and almost two-thirds (64%) of Australians are either concerned or very concerned about falling asset prices,” he said.

The findings form part of the consumer research company’s quarterly Green-Tracker survey, which tracks Australians’ concerns, values and attitudes, awareness and behaviours about sustainability matters.

CPRS: Many Australians still in the dark

• One-third (35%) of those surveyed had not heard of the government’s Carbon Pollution Reduction Scheme (CPRS);

• Two-thirds (65%) of those surveyed could not name the scheme’s initial reduction target of five per cent;

• Fewer than one in ten (8.8%) said they have a good understanding of how the federal government’s emissions trading scheme will work.

According to Nick Bez, the Green-Tracker findings were quite sobering from a government perspective.

“Even with saturation media coverage and government efforts to clarify the matter, the construct and outcomes of the CPRS remains shrouded in mystery for most Australians,” Mr Bez said.

Positive outlook for green products and services despite gloomy economic forecasts

Price remains the overwhelming barrier for people to buy environmentally-friendly products and services, with more than three-quarters (77.9%) of people still saying price is a roadblock to purchasing.

“Only one-third (36%) of people are now willing to pay 25% or more for products and services which are made in an environmentally-friendly manner. For most people in the current financially challenging times, the willingness to a pay a premium for ‘green’ continues to fall,” Mr Bez said.

The research also shows consumers are more willing to spend on ‘green’ products and services if they can see benefits for themselves as well as for the wider community.

“Products that provide a direct cost-saving such as solar hot water or energy efficient appliances or other personal benefits such as domestic rain water tanks to keep the garden thriving, remain best placed for growth.”

With the current Australian consumer market for healthier and more sustainable options valued at 15 billion dollars, Mobium Group believes 2009 represents a time of enormous opportunity for companies that can offer a product or service with genuine environmental credentials, at a competitive price.

“These companies have an opportunity to fundamentally re-shape markets and attract the growing number of consumers looking for environmentally friendly alternatives, at an affordable price point, within mainstream shopping channels,” Mr Bez said.

Contact Mobium Group for more details.

Download press release

Doom, gloom and the green market goes boom ?

The doubters are circling and the end of the LOHAS market has been declared by many commentators around the world.

Julian Lee’s article; “Green products facing a black future” in the Sydney Morning Herald suggests that the recent financial turmoil will undermine the consumer appetite for environmentally and socially preferable products and services.

Mobium’s Living LOHAS research showed that while fiscal matters have a raised importance, economic circumstances do not change individuals values and attitudes towards their personal, community and planetary concerns. In short, the LOHAS Leaders, the engine room of the LOHAS market are not going away.

What remains as the challenge for green product manufacturers is the requirement to deliver alternatives that have functional, price and availability equivalence with conventional counterparts.

Read “Green products facing a black future” in our media section

Green purchasing at a business, government and consumer level is growing around the world.

Eco-Buy is a not for profit providing leadership to assist organsiation respond in a positive manner that is good for the bottom line, as well as for the environment.

Mobium’s Nick Bez discusses some of the key consumer responses to green purchasing uncovered in the Living LOHAS 2 research in an interview with Eco Buy’s Andrew Foran that clearly shows there is a consumer led business case for integrating sustainability into commercial operations.

Read “Consumers - green purchasing attitudes, trends and opportunities” in our media section

While doom and gloom pervades the global commercial world, the march of sustainaiblity in the business community continues unabated.

Nett Magazine explores the activites of the big end of town and its increasing focus on sustainability in products and supply chains in its article, “Sustainability: Business puts weight on Green”.

Using examples from Wal-Mart, Westpac and PWC the article details the emerging pressures that are being placed on suppliers to be transparent in their operations and provide sureity around a range of community and enviornmental attributes.

Mobium’s Andy Baker is quoted widely and provides a strong overview of the best practice that is emerging and discusses the barriers to further uptake.

Read this article in our media section