Our Kantar attitudinal data tells us that 60% of consumers yearn for sustainable products, but the perceived price barrier holds them back from acting with 35% of consumers cite 'higher costs' as the primary reason they shy away from eco-friendly options. Factually, we see sustainable products are being priced on average according to our data up to 70% more than existing products.
Funny that, as marketeers are accountable for setting competitive prices and should not be using sustainability to charge more - which puts consumers off
Yet, industries are proving that sustainable solutions can be both eco-friendly and wallet-friendly. Look at solar energy, now more cost-effective than gas, coal, and nuclear. Or consider China's EV market, where prices have plummeted by 50% in just seven years and are now being priced at or below petrol car prices.
For marketers, there's a lesson and an opportunity here.
💡 By Taking Back Control of the P&L, they can strategically re distribute financial resources to neutralise costs and set competitive prices
💡 How? by cutting inefficient promotions, harnessing cost benefits from scale, and simplifying over complex product specifications can all free up new funds.
💡 Funds that can be redirected to ensure our sustainable innovations are priced on par with conventional products.
This isn't just a strategy—it's the future, as seen with the success stories of the EV and solar sectors.
🌍 My question to you marketers and business leaders:
How are you setting competitive prices on sustainable innovations by redistributing cost saving in the P&L - and not just taking them into profit?