This season’s back-to-school trend: Frugality

Sustainable Life Media jpeg While green products and marketing often are painted as expensive, according to a new survey, low income consumers are driving the marketplace.  There is an opportunity here for marketers to engage this low price point audience and bring them over.

Posted July 22, 2009

By Sustainable Life Media

Miller Zell, a retail and strategy design firm, finds that lower income shoppers are driving the sustainable product marketplace, not the higher income, lifestyle consumers many think of as supporting sustainability.

Overall, the survey found 50% of consumers are willing to pay a premium for a product they consider to be green. The largest benefit comes to grocery stores, where 79% of shoppers will pay the premium and to mass retailers, where the number is 70%.

The research also suggests that retailers and manufacturers may be missing a great brand building opportunity with a younger, lower income consumer. Disposable income is not directly correlated to increased spending on green products, and in fact has an inverse relationship. Millenials and Gen Y'ers are the most likely to pay a premium for green products, while at the same time being the least satisfied with product information targeted to them.

Read the original report here.

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