By Nusair bin Nadzri
Consumerism is one topic that has been discussed throughout the time. It is becoming more relevant to discuss as today’s generation is facing so many issues and problems regarding consumerism. The pandemic also has a big impact on consumer matters. It has changed many things in our lives over the last two years, from attitudes towards the environment to our relationship with work.
One of the activities that caused an impact is the consumer behaviour towards climate change. It leads to the changes towards more socially- and environmentally-conscious consumer habits among younger buyers: Millennials (born between 1981 and 1996) and Gen-Zers (1997-2012) want to take action to reduce unsustainable consumption.
Some of the examples that we can see from a recent US study by experience management platform Qualtrics which found that there is a growing desire among consumers to support companies that treat their employees well. Almost half of the 2,000 people surveyed “ 47% “ said they would trust a brand more if it took care of its employees; and 36% said they would stop spending money on a business if its stand on societal issues did not align with their personal values.
Furthermore, research conducted in 2021 by Japans Hiroshima University supports these findings. It discovered that more Millennials and Gen-Zers preferred a sustainable lifestyle compared with previous generations and are willing to spend money with green companies.
After all, let us see the outgoing issues related to consumerism in Malaysia. Taylors University’s senior lecturer Dr. Song Bee Lian observes that Malaysian Millennials and Gen-Zers are indeed more socially conscious in their spending, prioritising socially responsible values and displaying strong œgood citizenship behaviour.
œBased on my research, I found that, mostly, Malaysian Millennials and Gen-Zers are prone to support businesses that have good ethical values, such as fair treatment of employees, says Song, whose expertise is in consumer behaviour and corporate social responsibility.
œMalaysian Millennials and Gen-Zers spending habits are different from past generations due to higher education levels, an increase in financial and digital literacy, and better knowledge and access to information that influences their mindsets, beliefs, behaviours and preferences, she explains.
Value congruence between customers and businesses plays an important influencing role, where customers will match their personal values “ for example, social responsibility “ with an organisations values. Therefore, an organisations reputation as a good and socially responsible employer is a critical factor in attracting customers. Although COVID-19 has adversely impacted the economy and Malaysian youth generally tend to prioritise affordability, certain categories of environmentally-friendly products are still important to them, says Song.
Products that are organic, locally-produced and humanely raised are still in high demand among Malaysian youth due to health concerns. Several recent research studies done in Malaysia have shown evidence that Malaysian youth consumers still prioritise socially conscious purchases during this pandemic. Local demand for sustainable products and services will increase in the future, creating more opportunities and encouragement for companies to venture into these areas.
It is important for businesses to formulate a sustainable business model that incorporates environmental, social and consumer considerations into their core business practices. At the same time, the government could provide support offering subsidies, incentives and training in how to lower production costs. Hopefully, pressure from this increasingly vocal consumer base will drive companies that have yet to move towards ethical and sustainable business practices to change the way they operate to remain relevant and in demand.
More data needed while there are many overseas studies that show a changing consumer trend towards sustainability among the younger generation. The Federation of Malaysian Consumers Associations (FOMCA) says that there isnt enough local data to conclusively show that the same is happening here. œWe cannot say for certain that there is also a trend here, whether it is in terms of environmental or labour conscious purchases as we do not have enough data, says FOMCA’s secretary-general Datuk Paul Selvaraj.
There is an increasing concern for the environment among consumers, there is insufficient evidence to show whether this interest converts to a change in consumer behaviour.
The younger generation is generally more sensitive about environmental issues and sustainable consumption. They may intend to be more socially conscious in their purchases, but whether they act on it, we do not yet know. There needs to be a national effort to make consumers more aware of the social and environmental impact of their purchasing decisions, which will then encourage businesses to improve their environmental and labour practices.
Companies will look at the local context when running their business. If people dont show interest in improving the situation, they will continue with their bad ways.œLegislation and clear sentiment on the ground will impact how companies operate and whether they would change.
It is believed that consumerism awareness such as being a responsible consumer is part of our action to have a sustainable world and life. Some of the actions have been done by our recent generation towards the greener environment. Their action regarding the consumerism should be praised. The education which had influenced todays generation is part of the proof that advocacy system implemented has indeed created and spread further awareness. ***
(Nusair bin Nadzri is a student in Department of Business Administration, Kulliyyah of Economic and Management Sciences (KENMS). The article is part of ˜Responsible Consumerism course. The views expressed here are those of the writer/author and do not necessarily represent the views of IIUMToday,)