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82% Back Ethical Goods, But Only One-Third Would Pay Extra For Them

The concept of ethical consumerism is gaining significant traction, with consumers increasingly concerned about the impact of their purchases on society and the environment. However, while awareness of ethical consumerism is high among Indian consumers, there are notable barriers hindering its widespread adoption and implementation.

Youth Ki Awaaz and Oxfam conducted a survey in both English and Hindi languages to explore the attitudes and behaviours of Indian consumers towards ethical consumerism. Surprisingly, despite the majority being aware of the concept, there exists a considerable disparity in awareness levels between respondents from different linguistic backgrounds.

Out of the total respondents, over two-thirds were well acquainted with ethical consumerism, with significantly more awareness among the 62.89% English-speaking respondents compared to their Hindi-speaking counterparts which was 37.09%. 

Moreover, a stark contrast emerged when examining students’ awareness, revealing a deficiency in knowledge among Hindi-speaking students, with only 11.93% acknowledging awareness compared to a substantial 40.04% from the English-speaking cohort. Cultural familiarity plays a pivotal role in shaping individuals’ understanding and engagement with complex concepts like ethical consumerism. 

Cultural Influences on Social Responsibility

India’s linguistic and cultural diversity inherently influences perceptions and priorities, with certain communities potentially prioritising different aspects of social responsibility. The disparity in awareness levels may reflect varying cultural attitudes towards consumption and sustainability, with English-speaking communities potentially more inclined towards globalised notions of ethical consumption prevalent in Western discourse.

When delving deeper into consumer attitudes, the survey unveiled a notable trend – a heightened concern among respondents regarding the conditions under which products are manufactured. Over the past decade, the emergence of ethical consumerism has played a pivotal role in shaping consumer behaviour. It has prompted individuals to become more conscientious and responsible in their purchasing decisions. 

The analysis shows that a substantial number of respondents, 55.51% in English and 75.87% in Hindi, express extreme consideration for the production conditions and sourcing of their purchases. This trend reflects a broader societal shift towards valuing transparency and accountability in supply chains. 

Moreover, the data reveals a noteworthy segment of respondents, comprising 38.61% of English speakers and 21.19% of Hindi speakers, who indicate a potential interest in considering product sourcing conditions in the future. This heightened awareness signifies a shift towards more conscientious and socially responsible consumption habits. Furthermore, a significant portion of respondents indicated a prospective interest in considering these factors in their future purchases, indicating a growing consciousness and evolving consumer landscape in India. 

Consumer Willingness versus Economic Realities

Despite the evident desire to support ethically and responsibly made products, the survey revealed a reluctance among consumers to pay a premium for sustainable alternatives.

While a vast majority (82.98% English respondents and 72.70% Hindi respondents) expressed willingness to support such products, less than one-third were prepared to pay extra for them.

This discrepancy underscores a crucial challenge faced by sustainable businesses – the need to align economic incentives with consumer preferences. Innovative strategies that enhance the affordability and accessibility of ethical products are imperative to bridge this gap and incentivize sustainable consumption practices. 

For sustainable businesses, this misalignment presents a significant obstacle to achieving widespread adoption of their products. Despite the increasing awareness of ethical considerations among consumers, the perceived higher cost and limited availability of sustainable alternatives often deter individuals from making the switch.

Overcoming Barriers to Ethical Consumerism

In response to this challenge, innovative strategies are needed to bridge the gap between consumer preferences and purchasing behaviour. One approach is to focus on enhancing the affordability and accessibility of ethical products. This can involve reducing production costs through technological advancements, optimising supply chains to minimise overhead expenses, and exploring alternative materials and manufacturing processes that are more cost-effective.

Moreover, the survey explored the emotional underpinnings of ethical purchasing decisions, revealing intriguing insights into consumer psyche. A significant proportion of respondents in both English (62%) and Hindi (40%) reported feelings of assurance and positivity associated with their ethical purchases, viewing themselves as socially and environmentally responsible consumers. As consumers become more informed and conscientious, there is a growing expectation for businesses to prioritise ethical and sustainable practices. This shift signals a positive trajectory towards a more responsible and socially aware marketplace.

In conclusion, while awareness of ethical consumerism is on the rise in India, significant barriers persist, hindering its widespread adoption. Addressing these barriers requires a multifaceted approach, encompassing inclusive education, economic incentives, and emotional engagement. By fostering a culture of conscious consumption and empowering consumers with knowledge and resources, India can pave the way towards a more sustainable and ethical future. As consumer attitudes continue to evolve, businesses and policymakers must collaborate to overcome these barriers and foster a more ethical and responsible consumer landscape in India.

Read the full report: Ethical Consumer Survey Report

Methodology for survey:

The survey method utilized a structured questionnaire distributed to respondents across diverse demographics in India. The survey was conducted in both English and Hindi languages where respondents could participate voluntarily. The questionnaire was crafted to examine respondents’ understanding, preferences, attitudes, and purchasing decisions pertaining to ethical and responsible consumption. Data collection was executed through online channels, ensuring anonymity of responses. Excel was utilized to analyze the collected data and draw conclusions by comparing it across different demographics.

The total sample size was 12,296 respondents. 65% of respondents took the survey in English, while 35% took the survey in Hindi. Of the respondents, 55% were women and 45% were men. Maharashtra accounted for 20% of the total, making it the top location followed by 12% in Delhi and 8% in Karnataka. Other states contributed to the remaining percentage of respondents.

To read more about YKA’s survey methodology click here.

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