THE FUTURE OF SUSTAINABLE CONSUMPTION:
EXAMINING THE PSYCHOLOGICAL FOUNDATIONS OF THE DEVELOPING NATIONS
Maggie Hoyle Savannah College of Art and Design FASM400 - Professor Christina Kountiou
1 Introduction to Issue 2 SWOT Analysis 3 Demographic 4 Needs, Values, Influences 5 Religious Influences 6 East VS West 7 Hierarchy of Needs 8 Role of Technology 9 Marketing Strategies 10 Proposal 11 Conclusion
the issue
Consumerism VS Consumption Consumption is the act of satisfying our basic needs Food, shelter, and clothing Consumerism is a much larger act way of living through our goods Imperative to society’s economic health too much consumerism fuels many harmful effects environmental psychological
DOES THE ANSWER LAY IN REGULATION AND REFORM FROM THE GOVERNMENT? SHOULD BUSINESSES TAKE ON THE RESPONSIBILITY? OR ARE THESE PERSONAL AND INDEPENDENT DECISIONS FOR THE CONSUMER TO MAKE?
S w o t
1 stimulates economy and businesses small business opportunities 2 entreprenuership mindset 3 globalization - building economic relationships 4 fuels supply and demand
1 extremely harmful impacts on the planet 2 gloabalization not localization both goods and waste 3 changing societal and community values 4 psychological impacts
1 social and envrionment change as a reaction 2 creative design oppotunities 3 globalization opptimaizing global connections, stronger global connections 4 collaboration
1 time 2 global trade and communication barriers 3 costs 4 competition
demographic ADVOCATES China 6% India 16%
ASPIRATIONALS China 53% India 42%
PRACTICALS 30% each
Emerging markets Developing nations Shifting from production markets to consumer markets Expected that between 2015 and 2030, 42% of consumption growth will come from 374 cities in developing countries throughout Asia, Latin America, Eastern Europe and Africa.
INDIFFERENTS China 10% India 12%
needs values influencers shopping sustainably
where consumers place their happiness (and to what degree)
individual or shared responsibility
1 want a better understanding of how products are sustainable 2 see immediate benefits of their sustainability choice 3 feel more connected to the community
many would give 10% of their income in order to spend more time with people or projects they cared about ranked highest among nations belief that having material goods is a substantial source of their happiness
equal thinking that individuals should be responsible for making sustainable decisions as much as they feel a sense of responsibility to their communities
value working collectively and as a community as much as they feel it is their individual responsibility
instant gratification
regional belief systems Hinduism is practiced by about 80% of the population rebirth reincarnation caste systems Majority of Buddhism in Northern India, Southeast Asia, and most of China followed until Communist was introduced
emphasis on living the “right way� to reach nirvana, interconnectivity to communities and moving through systems
sila-samadhi-panna
Feel a sense of responsibility to society to buy sustainably
65%
Combined
50%
Developed Nations
81%
78% 75%
Developing Nations
81%
Believe individuals should be responsible for taking care of themselves sustainably
collectivist Place a higher value on group achievements Think in a more holistic manner More likely to examine the context
east vs west
individualistic More inclined to value personal success and higher self-esteem over the success of a group
hierarchy of needs
Motivation to buy based off brand
27%
Combined
Developed Nations
17%
Developing Nations
37%
top tier basic need that prioritizes social relationship brand and community affiliation
82% growth in internet users since 2012 (1.7 billion people) 88% increase of social media users (1.3 billion people) 25% increase in social media users within Asia in the last year
Endorsements by trusted organizations
29%
15%
CSR or Sustainability Reports
9% 20%
Social Media
5%
22%
role of technology
Source of Trust
Developed Developing
Marketing strategies&Solutions Evolutionary Psychology proximate vs ultimate explanations Importance of brand image and status in society
WHO?
Aspirational and Practical consumer demographic Merging these consumers and the local and global businesses
HOW?
WHAT?
Coopetition
Developing nations are more likely to connect and share than any other country, 29% saying they share on social media at least once a day Simone Sinek GOLDEN CIRCLE
Strategy:
proposal
Growing local brands -adopting similar philosophies of fast fashion -compete closely with these brands on image and desirability -similar brand imaging could be made into an opportunity for coopetition A business structure that is more localized even for the bigger fast fashion brands Working closer with local brands = the values of customers can be more closely met gain more trust for the companies involved (example below)
COOPETITION - opens venues of communication and collaboration between industry competitors to create a ‘win-win’ solution - pull resources for mutual gain
Steps to gain trust: 1 social media outreach 2 how that outreach raises a consumer’s status 3 status influence on decisions towards society
Bemporad/BBMG, R., GLOBESCAN, SustainAbility, Hebard/BBMG, A., & Bressler/BBMG, D. (n.d.). Re:Thinking Consumption - Consumers and the Future of Sustainability (Rep.). The Regeneration Roadmap. Retrieved November 14, 2017. Fielded September and October 2012 Robson, D. (2017, January 19). Future - How East and West think in profoundly different ways. Retrieved November 14, 2017, from http://www. bbc.com/future/story/20170118-how-east-and-west-think-in-profoundlydifferent-ways 9.5 Religions of India and South Asia . (2016). In World Regional Geography: People, Places and Globalization (2016 ed., Vol. 2). Minnesota: University of Minnesota Libraries Publishing . Retrieved November 14, 2017, from http://open.lib.umn.edu/worldgeography/chapter/9-5-religions-ofindia-and-south-asia/ E-BOOK IBSN: 978-1-946135-27-8 Eik, W., Lin, A., Tollefson, E., Mak, E., Yep, J., Man, M., . . . Birtwhistle, T. (2016, June). The Disruptive Face of the Retail and Consumer Products Sector in China and Hong Kong (Rep.). Retrieved November 14, 2017, from PwC website: https://www.pwccn.com/en/retail-and-consumer/rc-disruptive-face-jun2016.pdf Kemp, S. (2017, March 06). The incredible growth of the internet over the past five years - explained in detail. Retrieved November 14, 2017, from https://thenextweb.com/insider/2017/03/06/the-incredible-growth-of-theinternet-over-the-past-five-years-explained-in-detail/ (2014). Retrieved November 14, 2017, from https://www.ted.com/talks/ simon_sinek_how_great_leaders_inspire_action/up-next TedxPuget Sound Saad, G. (2011). Consumers: Born and Made. In The Consuming Instinct (pp. 11-40). Amherst, New York: Prometheus Books.