From the bustling streets of Hanoi to the vibrant markets of Ho Chi Minh City, Vietnamese consumers are increasingly making environmentally conscious choices. Sustainability is no longer just a trend, but a mainstream priority shaping consumer choices and influencing brand loyalty. As businesses seek to meet these growing demands, they must embrace sustainable practices across their operations, including their choices in logistics and shipping in Vietnam. In this blog post, we'll delve into the growing consumer demand for sustainable products and services. We will also explore how DHL's GoGreen Plus program can empower businesses to meet these expectations, and examine how these practices can boost brand sustainability and market competitiveness in the Vietnamese market.
Meeting the growing consumer demand for sustainable practices in Vietnam
Today's Vietnamese consumers are increasingly making conscious choices that reflect their concerns for the environment. A 2023 survey conducted by NielsenIQ Vietnam, as reported by Vietnam Plus, found that a significant 55% of consumers actively appreciate sustainability as a factor in their consumption choices. Furthermore, 95% of consumers in Ho Chi Minh and Hanoi have a strong sense of environmental consciousness. They are seeking products and services that align with their values, and sustainability has become a key factor influencing their purchasing decisions. This growing demand for eco-friendly options presents a significant opportunity for businesses to differentiate themselves in the market and cultivate stronger connections with their customers.
However, businesses that embrace sustainability have the opportunity to build stronger brand loyalty and gain a competitive edge. Research from the Boston Consulting Group in 2023 has shown that sustainability-focused companies tend to enjoy significant financial advantages. There is a median total return to shareholders of 16% per year, compared to non-sustainably focused companies' median of 3%. By demonstrating a commitment to environmental responsibility, they can attract and retain customers who prioritize eco-friendly products and services.
Understanding sustainability consumer trends in Asia-Pacific
The trend toward sustainable consumer behavior is not limited to Vietnam. Across the Asia-Pacific region, consumers are increasingly demanding eco-friendly products and services. For example, the Vietnam Briefing has reported that 90% of consumers in the region, including Vietnamese consumers, are willing to pay a premium for sustainable products.
Beyond Vietnam, the movement towards eco-conscious consumption is evident across multiple countries in the Asia-Pacific. A 2022 study done by Bain & Company found that 82% of Asia-Pacific consumers believe companies should be transparent about their environmental impact. Moreover, 40% of consumers in the region expect to increase their spending on sustainable products in the next three years. This change reveals a growing awareness of the environmental impact of consumer choices. Consumers are increasingly factoring in the sustainability of products and services when making purchasing decisions, seeking out brands that align with their values and contribute to a greener future. This trend is particularly pronounced among younger generations, who are more likely to prioritize sustainability and actively seek out eco-friendly options. The demand for sustainable packaging has also increased significantly, with consumers expecting businesses to minimize waste and utilize recyclable or biodegradable materials.
Moreover, Forbes has reported that 88% of consumers exhibit increased loyalty to companies that actively support environmental issues. A 2022 study by First Insight further solidifies this, highlighting that 62% of Gen-Z consumers have a preference towards brands openly practising sustainability. Companies that champion sustainability initiatives are more likely to cultivate a loyal customer base and enhance their brand reputation. Recently, a 2023 study by NielsenIQ revealed that 78% of global consumers believe it is extremely or very important that companies implement programs to improve the environment. This demonstrates that sustainability isn't just about attracting new customers; it's also about retaining existing ones and fostering a sense of shared values.
Understanding sustainability consumer trends in Vietnam
Vietnamese consumers are showing a clear preference for environmentally responsible sustainable brands, according to 2023 data from Statista. The common practice among Vietnamese consumers is to prioritize the brands with environmentally sustainable actions and values.
Here are some examples of how Vietnamese businesses are embracing sustainability, according to PROVietnam:
- Coca-Cola has pledged to collect and recycle all its plastic bottles sold in Vietnam by 2030. The company is also investing in renewable energy sources and reducing its water usage.
- Nestlé is committed to making all its packaging recyclable or compostable by 2025. The company is also working with farmers to reduce their environmental impact.
- Suntory is using recycled plastic in its packaging and is working to reduce its carbon footprint. The company is also supporting local communities in Vietnam.
The business case for sustainability
Beyond consumer appeal, sustainability also offers tangible business benefits.
- Enhanced brand loyalty: By demonstrating a commitment to sustainability, businesses cultivate trust and loyalty among their customers. This can lead to repeat purchases, positive word-of-mouth recommendations, and a stronger brand reputation.
- Market differentiation: In a crowded marketplace, sustainability can be a key differentiator. It allows businesses and brands to stand out from the competition and appeal to a growing segment of environmentally conscious consumers.
- Cost savings: Sustainable practices often lead to cost savings in the long run. For example, reducing energy consumption and waste can lower operational expenses and improve efficiency.
- Long-term financial gains: Embracing sustainability can position businesses for long-term success. By choosing to adopt sustainable practices today, companies can mitigate risks associated with climate change, resource scarcity, and changing consumer preferences.
How DHL GoGreen Plus helps businesses overcome sustainability challenges
The rising consumer demand for sustainable practices presents a significant opportunity for businesses in Vietnam. By embracing sustainability, companies can enhance brand loyalty, differentiate themselves in the market, and contribute to a greener future. DHL's GoGreen Plus program offers a practical and effective solution, empowering businesses to align with consumer preferences and make a positive impact on the environment.
This program offers a range of initiatives, including the use of Sustainable Aviation Fuel (SAF), to help businesses reduce their carbon footprint and achieve their sustainability goals.
One of the key benefits of DHL’s GoGreen Plus is carbon insetting. This approach allows businesses to offset their carbon emissions and footprints by investing in projects that reduce or remove greenhouse gases from the atmosphere. This helps to mitigate the environmental impact of shipping and supports the transition to a low-carbon economy.
Additionally, businesses that utilise the GoGreen app further enhances transparency and accountability by providing businesses with detailed reports on their carbon emissions and the progress of their sustainability efforts. This information can be leveraged to communicate effectively with customers and stakeholders, showcasing the company's commitment to environmental responsibility.
Through partnering with DHL Express Vietnam and utilizing the GoGreen Plus program, businesses can demonstrate their commitment to sustainability, meet the growing demands of eco-conscious consumers, and build a stronger, more resilient future.
If you are ready to embark on your sustainability journey and meet the growing consumer demand for eco-friendly practices, open a DHL Express business account today. Together, we can build a more sustainable future.
