Purchase Behavior Among 'Health and Sustainability' Shoppers

Walmart is truly ahead of the curve when it comes to environmental sustainability initiatives -- so much so, in fact, that the retailer may be leading where some of its most loyal shoppers haven't felt compelled to follow. Research by The Nielsen Company and the Natural Marketing Institute (NMI) found that shoppers who lead "lifestyles of health and sustainability" -- or "LOHAS" consumers, as defined by the study -- spend more money in warehouse clubs than in any other channel. Meanwhile, shoppers defined as "unconcerned" about environmental issues spend the most in mass merchant supercenters. Dollar sales from unconcerned shoppers at Walmart chains were 1.6 times higher than those from LOHAS shoppers. (See charts at right.)"You do have to applaud Walmart in terms of all the work they're doing in sustainability, when in fact a lot of the dollar sales they get in stores come from people who could care less about what's going on with the environment," said Todd Hale, senior vice president, ACNielsen North America, during a presentation at Nielsen's Consumer 360 Conference last June in Phoenix. "But I think, in time, you're going to see some changes there."The research, which is based on Nielsen Homescan panel data and a segmentation model derived by NMI, splits shoppers into one of five categories according to their attitudes surrounding health and sustainability:19% are "LOHAS" consumers, described as "passionate, environmental, socially responsible stewards." They are highly concerned about both personal and planetary health. 19% are "Naturalites," who are primarily motivated by health, but place an emphasis on personal rather than planetary health.25% are "Drifters," younger, trend-oriented consumers with good intentions about environmental issues but don't necessarily have the economic means to rigidly adhere to the movement.19% are "Conventionals," described as "cautious actors" and more traditional consumers who might, for example, be motivated to try a compact fluorescent light bulb primarily because it saves on their energy costs.17% are "Unconcerned" consumers, who are either unaware or unmotivated by environmental sustainability issues.Besides having a preference for the club store channel, LOHAS shoppers outspend unconcerned shoppers in virtually every department except meat. (See chart at right.) Top LOHAS categories relative to unconcerned shoppers are fresh produce, alcoholic beverages, dairy, health & beauty care, and dry grocery. The LOHAS segment spends much more on products promoting health claims or organic labels. LOHAS shoppers spent nearly four times more on organic products ($91.33 annually) than unconcerned shoppers ($24.53 annually). Household penetration for organic products was 81% for LOHAS shoppers, versus 62% for unconcerned shoppers. LOHAS shoppers also appear to be among the quickest to try new "green" products and make repeat purchases. The research found that LOHAS shoppers made up 33% of the households trying Clorox Green Works natural cleaners within 16 weeks of their introduction in January 2008. Only 7.7% of the unconcerned segment tried the product. Repeat purchases of Green Works by LOHAS shoppers were 16.7%, versus only 10.8% for the unconcerned segment.The LOHAS segment also has a greater mistrust of traditional advertising than other shopper groups, so NMI recommends meeting these shoppers "on their own terms." LOHAS shoppers use the Internet extensively to research and discuss products, so blogs, social networking sites and experiential marketing tools such as sampling events may be more effective in reaching them. NMI also cautions against merely slapping a green label on a product in an effort to boost sales. Because LOHAS shoppers are very engaged in making conscious choices about green products, all claims should be legitimate and substantiated. Likewise, a green label alone often isn't enough to convince shoppers to try a product. Product labels should clearly communicate the product's function -- efficacy, value and convenience -- along with its LOHAS benefits.

P2PI MEMBERS

JOIN P2PI

You May Also Like

The New Consumer (March-April 2024)

Back-to-School Shopping Trends