Sustainability
To capitalize on the opportunity of sustainability, you need to follow a different approach than companies have historically taken to reach consumers.
- Recognize the opportunity: Between 10% and 20% of consumers are passionate about the environment that they are willing to pay a green premium of 20% or more for the right product.
- Work on justifying the premium: B2C companies that redesign their offerings with the highest standards of sustainability and product functionality can justify that premium.
- Follow Choice Game strategies: Tapping the mainstream market will require a portfolio of solutions that bundle green features with other features that consumers associate with the environment, such as health and safety. Broader adoption beyond that will depend on eliminating the green premium cost, which should be easier with scale.
B2C companies can support the broader transformation by creating predictable demand for sustainable products and co‐designing sustainable solutions with their suppliers and, in turn, with their suppliers’ suppliers.
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