IHA News Release

FOR IMMEDIATE RELEASE:
Contact: Deborah A.Teschke
Manager, Media Relations & Communications
847-692-0110

In The Green: Ganshirt and DeGarbo Look at Creating a Brand Experience That  Provides the Best Green Value

Chicago (March 17, 2008)—Though the hottest trend at the 2008 International  Home + Housewares Show is “going green” green messages are complex and currently confusing to retailers and consumers alike.

In Monday’s educational presentation, “In the Green: Connecting with Environmentally Conscious Consumers,” Jennifer Ganshirt, managing partner, Frank About Women, opened with “Green is hot, very today and truly everywhere. We are inundated with information, from fashion to wedding planners to eco conscious travel and even gossip about hot green celebrity topics, but lack real insights on how to authentically connect with green.”

Her company’s recent proprietary “Greener Side of the Female Consumer” survey collected data from 1,084 female respondents along with some males, from 18 years and over, exploring current green attitudes and behavior.  The data revealed a number of fundamental truths that impact the entire green market:

• Women fuel the green movement more than men. The environment is gendered; women are more open to and motivated by green marketing than men. They are more likely to switch to green brands as compared with men, who remain more skeptical about green issues.
• Women believe in their purchasing power. Women place buying green products on the top of their list, even over voting for green issues. Their purchasing incorporates their green beliefs: 90 percent believe in the power of green products; 43 percent are willing to pay more for them; 25 percent of all products in their shopping carts are currently green.
• It’s both personal and global for women. Women are motivated both by personal health and altruistic global wellness: 52 percent are willing to pay more for green products that benefit the planet, while 27 percent will purchase products with higher price points if they provide family benefits.
• Integrate into women’s reality vs. trying to change it. Women are interested in convenience and simplicity: 47 percent want more mass retailers to stock green products. Wal-Mart is considered the tipping point; 35 percent will buy green products now that they can find them in this big box store; 47 percent want brands they already know and trust to carry green products.
• Understand her green value equation.  Women’s wallets remain the most important factor in their green purchases: 69 percent would buy a green product if its price were equal to or less than other products. Wal-Mart is leading the change to green by making green products more affordable.
• She is embracing green all over. Even categories once foreign to green are now open to consumers, including cosmetics, paper products, pet care, and health and wellness.
• “One size fits all” doesn’t work. Women have four distinct personality profiles when it comes to green: eco-evangelist (8 percent), home health administrator (24 percent), convenience first customer (39 percent), and green cynic (29 percent). Of these, the home health administrator is often the most affluent and going green is part of her way of life, while the convenience first time customer needs simplicity. Her sweet spot is the trusted brand, along with price.

Ganshirt advised that from this data, “Retailers can celebrate the fact that to women, purchasing green does make a difference. They can make it easy for women to give back, and show that their purchases are part of a larger momentum. Women also have a third critical ingredient in the green value equation.  All green products must have an acceptable price and quality, but health tips the scale for food and beverage, while style does the same for apparel, and performance makes the sale for products.” She further recommended that retailers understand where their target market falls on a personal to global motivation continuum, and use key life events, such as motherhood, that trigger significant mindset shifts for women.

Lastly, she strongly urged retailers to “…embrace green. Don’t just paint it green. Customers know the difference. Trust is critical to women’s long-term loyalty.  Thirty-seven percent pay more attention to a brand’s message if it is socially and environmentally responsible. How you do your business is important to what you do; tell your story, even if it is still evolving. Keep the doors to communication open if a problem occurs and open the doors to communication if you move problem occurs.”

While Ganshirt applauded Whole Foods as a leader in green initiatives, co-panel presenter, Fabian De Garbo, director of sustainable packaging at Whole Foods Market, commented that because this is the way the company has always done business, the concept of green is not new. Tracing the course of consumer awareness and retail approaches to green during the past few years, he explained that the market has evolved from “… ‘green’ as new in 2006, to interest in ethical, local issues and being proud to give back to the community in 2007, to eco-consciousness in 2008.” The biggest factor in making a green choice remains cost; more than 80 percent of Whole Foods consumers are willing to make a green purchase if the cost is equal to or lower than other choices.

In selecting packaging suppliers for 2200 products in the Whole Foods 365 line under his responsibility, DeGarbo is consistently thorough in looking for a corporate match in objectives and history of donating some of the profits, while verifying against conflicting agendas:  that they do not make other products which are harmful to the environment.

He recommended that with a push to buy local “… the ‘made in USA’ impact is huge. Putting that on the label will appeal, even if the product is more expensive.”

Adding caution to the interest in green buying, Ganshirt said, “Heightened awareness does not necessarily convert to behavior, especially in a down turn economy.” Responded DeGarbo, “Those willing to pay more for green are still relatively niche. Less than 10 percent of manufacturers are eco-conscious, but the market is changing as manufacturers realize that when they use less materials and energy, they can actually increase their profitability.”

What can any retailer do to go green in the way they do business? To start, DeGarbo offered, “Review your energy use and transportation infrastructure, and spotlight your green products in a dedicated green section.” He forecasts 2008 as a year of gradual, positive evolution. “Though there is confusion and skepticism in the market place, education is the critical first step to making the green movement credible. Consumers need proof; putting claims on products and comparisons will enable to them to understand the benefit to self and planet.”