20 August 2020

Sustainable shopping choices

Consumers are turning to sustainability as a guiding light

Across the world, we can see that sustainability has become a big trend in the packaged goods and fashion industry as environmental concerns have increasingly become top of mind for consumers.

In fact, on average, Norwegians have as many as 359 garments in their cupboards, and 1 in 5 of these are rarely or never used. That equates to Norwegians buying as much as between 13 and 16 kilos of clothes every year. But the more clothes we buy, the more the production and the burden on the environment increases.

Simultaneously however, a good product is no longer enough to win a consumer’s heart. Shoppers want more than just quality and now look for products and brands that align with their personal values. In fact, by 2021, we expect sustainable goods will make up 25% of store sales

Interestingly, in Norway, more women are turning to secondhand sites, as they continue to compare deals and make more of an effort to spend less, especially around luxury goods.

As a result, we have seen the rise of Norwegian start-ups that deliver environmentally friendly, ethical and personal garments for both the everyday consumer and larger companies.

Tise, for example, is a Norwegian social marketplace app focusing on secondhand fashion and interior. The marketplace has seen an extraordinary growth since its launch in 2016 and now has more than 1.1 million users. These users are mostly young women that are conscious about the environment and have an interest in fashion.

But as more and more people across the globe are turning to sustainable shopping, the retail landscape continues to change rapidly. As a result, we are now expecting a permanent change across the Nordic region.

Learning from other markets suggest that this trend will change the eCommerce landscape as we know it today. Whilst there is no way to precisely predict the impact of this change on the market, here are our three key areas that brands should be preparing for:

  1.     Growth of environment friendly online shoppers. – We have seen that the numbers of people shopping online has increased heavily in the last couple of years. This is positive news for retailers with an existing eCommerce store, as they can update their audience and content strategy as well as expand to a new and larger group of environment friendly online shoppers.
  2.     Clear shift in customers’ expectation for sustainable products – It’s no surprise there’s been a huge rise in consumer demand for sustainable products in small and large markets. A lot of global companies are updating their business to become more conscious about their impact on the environment. There are 3 key areas within this change: recycling, packaging & distribution and becoming a purpose-led brand.
  3.     Increase in online advertising spend– Brands should now make several changes to their online advertising activity. As there is higher online demand and an expansion of new online shoppers, the timing is perfect to expand into existing and new marketing channels and formats to  capture the target audience that will lead to an online sale.

 

Ina Iversen, Head of eCommerce, Norway, OMG Transact

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