Indian Perceptions

1. Study
conducted by:

2. Project Supported by
Green Purchasing Network India2
Japan Fund for Global Environment
International Green Purchasing Network

3. The Project
Green Purchasing Network India3
 Consumers, particularly those in Urban belts, reportedly
showing strong affinity for green products
 Uncertainties related to green products
 Challenges to promotion of green products
 This study aims to understand challenges and explore
solutions for communication and promotion of green
products

4. Some Key Questions
Green Purchasing Network India4
 What is greenness to an Indian consumer?
 What criteria on greenness is the Indian consumer looking
for?
 What are the barriers perceived by the consumers that deter
them from buying green?
 Do Indian consumers trust various claims made by product
manufacturers? If yes, then up to what extent?
 What are the problems faced by the industry in
communicating green products to Indian consumers?

5. Some Facts on Indian Consumer(ism)
Green Purchasing Network India5
 Real household disposable income has more than doubled
since 1985
 Middle class has emerged as the predominant consumer in
India
 Twelfth-largest consumer market today to become the world's
fifth-largest consumer market by 2025*
 Surveys suggest, Indian consumers, particularly the middle class
consumers, have become environmentally more conscious
*McKinsey Global Institute

6. Green Purchasing Network India6
 India is the country with the highest Greendex
score since 2008
 Indian consumers repairing broken items rather than
replacing them
 choosing to buy things that are “used” rather than new
 avoiding environmentally unfriendly products
 choosing to buy environmentally friendly products
 However
 they are skeptical of green products
 environmentally friendly products are not worth the extra cost
Regular quantitative measures of
consumer behavior and to promote
sustainable consumption

7. Green Purchasing Network India7
 95% Indians want government to support more green
innovation and regulation
 Lack of availability and inconsistent labelling as the major
barrier to buying green
Consumer perceptions of green
products and corporate brands

8. So Why Another Survey?
Green Purchasing Network India8
 Large Sample Size
 Multi-stakeholder approach
 Bilateral Methodology
 Designed specifically for Indian consumers

9. Approach
Green Purchasing Network India9

10. Overview of Survey Sample
Green Purchasing Network India10
Online
Survey
453
Offline
Survey
1598
Manufac-
turers
8
Retailers
6
Certifiers
2
Consumers
2051
Industry Stakeholders
16

11. Green Purchasing Network India11

12. Results and Analysis:
Consumer Survey

13. Overview
Green Purchasing Network India13
 The survey targeted to know –
 What an Indian consumer understands by ‘Greenness’ of a product?
 What factors influence their buying decisions on green products? Do
Indian consumers trust various claims made by product manufacturers?
 What are barriers perceived
by the consumers that deter
them from buying green?

14. Survey Size and its Characteristics
 Mode of conduct: Online
(22%) and Offline (78%)
Green Purchasing Network India14
 The sample had 55% Male and
39% Female respondents
At point of Purchase

15. Survey Size and its Characteristics
 90% of respondents of both gender were young and belonged to
the age group between 21-60 years
Green Purchasing Network India15

16. Survey Size and its Characteristics
 86% of male and 91% of female respondents were well educated
and belonged to group that had completed graduation at
minimum
Green Purchasing Network India16

17. Survey Size and its Characteristics
 66% of male respondents and 55% of female respondents had
good buying capacity
Green Purchasing Network India17

18. Excellent Respondent Profile
Green Purchasing Network India18
 Maximum of the Respondents were young, well-educated and
had buying capacity
 Representative of Urban Middle class said to be the
predominant consumer in India!

19. Recognizing Green Products
 Understanding was
limited to the terms
 Biodegradable
 Recycled
 Organic
 Non-toxic
• 90% of the respondents were aware of the term ‘green ‘ or
‘eco-friendly’ product
Green Purchasing Network India19

20. Recognizing Green Products
 Terms ‘Recycled and Biodegradable’ were
most recognized amongst those consumers
who said they were aware about green
products
 The terms ‘organic and Non-toxic’ were
most recognized amongst those consumers
who were not aware about green products
 Term ‘Organic’ was more popular with the
age group 41 years and above and the term
‘Recycled’ with the younger consumer (15 to
40 years).
Green Purchasing Network India20

21. Recognizing on Green Products
 Do Consumer understand the terms ‘biodegradable’ and
‘organic’?
 Can they differentiate between the terms ‘recycled’ and
‘recyclable’?
Terms that are popularly used as
synonyms to ‘greenness’ gets
imprinted on the consumer and they
use these to relate it to the
products.
Green Purchasing Network India22

22. Does buying Green Products makes a
difference?
Green Purchasing Network India23

23. Cost of Green Products
Green Purchasing Network India24

24. Cost of Green Products
 Cost of the green products partially influences the buying
decision but it certainly is not the guiding factor
 Cost aspect is not guided by gender differences nor by
different income group
Green Purchasing Network India25

25. Barriers preventing Consumers from
buying Green products
Cost is actually not the prime
factor as compared to
‘Awareness’ and ‘Availability’
Green Purchasing Network India26

26. Other Factors influencing the buying
decision
Design does not matter to consumers
as compared to concern for
environment and health
Green Purchasing Network India27

27. Eco Labels
Green Purchasing Network India28
 Ecolabels or certifications
on green products can
also influence the buying
decision

28. Take-aways - Consumer survey
 Understanding of the terms used for
defining ‘greenness’ w.r.t. the product
type needs more awareness amongst
consumers
 ‘Cost’ and ‘design’ of the product is not
the guiding factor that impacts buying
decision for an Indian consumer
 Ecolabels and Certifications can play a
big role in influencing buying decision
Green Purchasing Network India29

29. Results and Analysis:
Industry Stakeholder Survey
(Manufacturers, Retailers & Certifiers)
Green Purchasing Network India30

30. The Sample
Green Purchasing Network India31
 14 Companies (Meetings and Telephonic Interviews)
 Six retailers
 Eight manufacturers
 Covered the three categories of Organic Paper, Organic Textile
and Organic Food
 Comprised of companies with both online and offline presence
 All founded between the years 2000 and 2012
 Certifiers

31. Overview
Green Purchasing Network India32
 What challenges faced in communicating greenness to the
consumer?
 What attracts a consumer to buy green?
 What prevents a consumer from buying green?
 Do consumers understand eco-labels and certifications?
 Suggestions for increasing awareness and understanding of
green products

32. Communicating Green: What are the
challenges faced?
Green Purchasing Network India33
The top terms
used to
communicate
green are
‘Organic’ and
‘Biodegradable’

33. Communicating Green: What are the
challenges faced?
Green Purchasing Network India34
 Indian society is not yet prepared for the concept of green
 The buy-in / acceptance of a concept of a green product
requires change in mind set and behavior

34. Buying Green: What attracts a
consumer?
Green Purchasing Network India35

35. Buying Green: What prevents a
consumer?
Green Purchasing Network India36
 Cost emerges as the main barrier!

36. Eco-labels & certifications
Green Purchasing Network India37

37. Awareness on green products?
Green Purchasing Network India38
 All respondents cited education, media, social media, word of
mouth and a health conscious generation as the cause
Yes
100%
No
0%
Do you see increasing awareness about green
products amongst consumers?

38. Certifiers: A third perspective
Green Purchasing Network India39
 There is an increasing awareness amongst the urban
consumers regarding such certifications.
 Younger generation who are educated and health conscious
are driving this increase.
 There is a tendency among Indian consumers to believe the
claims however certification does not play a role in purchase
decision.

39. Certifiers: A third perspective
Green Purchasing Network India40
 For eco-labels, the focus is mostly on foreign markets as these
countries have stricter laws for exporters.
 Top barriers to Certification:
 low awareness of environmental hazards
 cost of certification
 low demand for certified products in India.

40. Overall Analysis
Green Purchasing Network India41

41. Consumer V/s Industry Stakeholders
 Cost
For Consumers the Cost is not the prime factor for buying
green products
where as
The Retailers and Manufacturers perception is that Cost is prime
factor
Green Purchasing Network India42

42. Consumer V/s Industry Stakeholders
 Design:
For Consumers design of the product is not important
whereas
The Retailers think it is!
Green Purchasing Network India43

43. Consumer V/s Industry Stakeholders
 Awareness:
 Although there is an increased Awareness on green products,
yet the terms for defining ‘greenness’ is still not understood.
Retailers and manufacturers perceive that ‘organic’ and
‘biodegradable’ is what consumer understand as Green
whereas
an aware consumer considers “biodegradable’ and ‘recycled’
Green Purchasing Network India44

44. Recommendations
 Need to increase awareness on the
‘Greenness’ terminologies
 Acceptable terminologies
 Communication and Media
 Communicating the shades of Green
 Absolute Green or Environmentally
preferable
 Preventing Green Washing
 Establishing Green claims code
Green Purchasing Network India45

45. Recommendations
 Increased Availability, affordability and
visibility
 Peering and assurance
 Certification
Green Purchasing Network India46

46. Thank you
Green Purchasing Network India47