ROHAN KACHALIA
Par 100 posts (V.I.P)
Green products are a rarity in almost every category of goods and services marketed in India. Eco-tourism, green buildings, environment friendly hotels, organic food, etc account for a minuscule percentage of our economy whose rapid growth is driven by consumption expenditure, contributing to about 64% of the GDP. Marketers should have grabbed this emerging opportunity for sustainable and profitable growth.
Unfortunately, most businesses have approached green marketing half-heartedly. While CEOs routinely highlight their environment-friendly initiatives and achievements in reports and media briefings, these are hardly ever leveraged to differentiate the firm and its offerings in the marketplace. Many such initiatives relate to manufacturing plants and back-end operations, e.g. water and energy conservation, social forestry, solid waste recycling, etc, and have largely remained a socio-legal obligation.
Less than 40% of websites of the top 500 businesses in India have a web page on environment. If information on corporate websites is seen as a reflection of priorities, most businesses are unlikely to market green products in the near future. This is baffling when one considers universal concerns about climate change and global warming. Will markets change?
Markets for green products will evolve through a favorable convergence of macro-environment forces comprising of legislations, economic incentives, consumer support and technological breakthroughs. These include multi-point fuel injection systems, low emission engines and unleaded fuel for automobiles, pollution control devices for cement and thermal power plants, alternatives to CFC-based refrigerants, etc. Consumer preference will be the most critical factor to determine the growth of green products in India.
Several initiatives will be required to grow these existing niche markets to attract the mainstream consumers. Marketers will have to make green products affordable. These seemingly incongruent objectives can be achieved through technological innovations. These products have been promoted as conspicuous consumption rather than products for mass consumption. There is neither much information nor many affordable choices for these products.
Education programs, inclusion of environmental topics in curriculum and information campaigns by the government, media, consumer forums and NGOs have shown encouraging results around the country. Awareness and a positive attitude towards green products will create a favorable pre-disposition towards eco-friendly products. Moreover, economic incentives must also help to accelerate the creation of markets for green products.
SO THE MARKETERS SHOULD GRAB THIS OPPORTUNITY...
Source: Economic Times
By: G Shainesh, Associate professor, marketing, IIM Bangalore
Unfortunately, most businesses have approached green marketing half-heartedly. While CEOs routinely highlight their environment-friendly initiatives and achievements in reports and media briefings, these are hardly ever leveraged to differentiate the firm and its offerings in the marketplace. Many such initiatives relate to manufacturing plants and back-end operations, e.g. water and energy conservation, social forestry, solid waste recycling, etc, and have largely remained a socio-legal obligation.
Less than 40% of websites of the top 500 businesses in India have a web page on environment. If information on corporate websites is seen as a reflection of priorities, most businesses are unlikely to market green products in the near future. This is baffling when one considers universal concerns about climate change and global warming. Will markets change?
Markets for green products will evolve through a favorable convergence of macro-environment forces comprising of legislations, economic incentives, consumer support and technological breakthroughs. These include multi-point fuel injection systems, low emission engines and unleaded fuel for automobiles, pollution control devices for cement and thermal power plants, alternatives to CFC-based refrigerants, etc. Consumer preference will be the most critical factor to determine the growth of green products in India.
Several initiatives will be required to grow these existing niche markets to attract the mainstream consumers. Marketers will have to make green products affordable. These seemingly incongruent objectives can be achieved through technological innovations. These products have been promoted as conspicuous consumption rather than products for mass consumption. There is neither much information nor many affordable choices for these products.
Education programs, inclusion of environmental topics in curriculum and information campaigns by the government, media, consumer forums and NGOs have shown encouraging results around the country. Awareness and a positive attitude towards green products will create a favorable pre-disposition towards eco-friendly products. Moreover, economic incentives must also help to accelerate the creation of markets for green products.
SO THE MARKETERS SHOULD GRAB THIS OPPORTUNITY...
Source: Economic Times
By: G Shainesh, Associate professor, marketing, IIM Bangalore
