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US: The Greener Pasture In Sustainability

Even if their pocketbooks are holding less green, a recent study shows that consumers are still making green choices in their homes, when possible.

The results of the 2009 Green Home Furnishings Consumer study, which was conducted by the Sustainable Furnishings Council (SFC) and sponsored by World Market Center Las Vegas, were announced at the inaugural September Las Vegas Market. The study is the second annual wave of a national survey aiming to measure consumer awareness, interest and behaviour related to sustainable furnishings. The sample was intentionally limited to the prime demographics for purchasing home furnishings to ensure that the results would be most applicable to decisions made by companies that service this market.

This year’s results were consistent with the results from 2008 and confirm that the economy has not dampened eco-friendly consumer interest.

“There was nothing really good out there in the public domain that was current, and certainly not specific to the home furnishings industry,” says Jeff Hiller, president of SFC. “We wanted to determine how people were thinking about sustainability and how much they would be willing to pay. The study is about awareness and activation levels.”

Hiller says the study gives unprecedented perspective into the consumer’s thought process, as it applies to sustainability and their homes.

“This research has clarified some important trends,” he adds. “Most critical is that there is a significant portion of the buying public out there in our markets that is very interested in at least hearing the story of sustainability in our product categories.”

Among other findings, the study discovered the following:

• Consumers are significantly interested in purchasing sustainable home furnishings, with two important qualifiers: If they like the style and it costs about the same. If both style and price are on par, more than 80 percent of consumers indicate some level of interest.
• 50 percent automatically assume that a green product will cost more without any inspection.
• Another 25 percent say that green furnishings are too expensive vs. other options, a potentially legitimate concern, though this may include the afore-mentioned 50 percent.
• Nearly half of consumers are relatively equally concerned about a broad range of environmental issues, from deforestation to unfair labour practices.
• 28 percent of consumers are directly affected by indoor air quality issues, but 44 percent not directly affected think everybody should be concerned.
• On global warming, 44 percent claim to be very interested in doing what they can, like recycling at home, adjusting the thermostat, switching to CFL bulbs, using reusable shopping bags and buying a variety of green products.

However, purchasing of green home furnishings remains very low at eight percent, the lowest of all categories considered. The main reasons consumers give for not purchasing green home furnishings is lack of awareness/availability at a combined 60 percent suggesting a supply and awareness problem more than dissatisfaction. This is corroborated by generally low awareness (under 30 percent) for green options other than Energy Star, organics or recycled content, things far more in the common lexicon.

Hiller says that the facts gleaned from this study have the power to really make a difference in the sustainable furnishings industry. “It’s a supply issue, not a consumer issue. This research shows there is a ready market out there for products that are positioned as responsible, eco-friendly products that don't cost an arm an a leg,” he continues. “Many, many options don’t cost any more than similar products that are not eco-friendly.” Hiller went on to say that bamboo costs less than other hardwoods and eco-friendly foams cost almost nothing more.

The study also showed that consumers view prices of up to 10 percent more as comparable. Above 10 percent, interest is virtually non-existent. However, Hiller posits that this is not to say that a product with other compelling features or benefits could not command a much higher premium. This merely indicates a limit for mainstream products differentiated exclusively on the basis of a sustainability claim.

Green Hospitality/Interior Design

New questions were added this year to get a better understanding of sustainability issues and opportunities related to interior design and hospitality. About half of consumers say they ever have or would ever seriously consider working with an interior designer to help furnish their homes, with nearly 80 percent of those at least somewhat interested in working with a certified green designer if they liked their sense of style and charged no more than others.

Yet 75 percent had never even heard of a green designer, and virtually no one had ever worked with one (2 percent), suggesting an opportunity in the market. The green market is more established in hospitality, with nearly 50 percent of consumers having heard of green hotels and about 20 percent having stayed at one. Over 70 percent express some interest, translating to a projected trial rate of 47 percent (all definitely + half of very interested) if it was convenient, comfortable and cost about the same. Consumers were interested in many different options, foremost among them a property recycling program, prominent use of plants and trees, energy efficient lighting and water conservation.

Las Vegas Market Green Survey

During the recent September Las Vegas Market, another survey asked retailers and designers how important the purchasing of sustainable home furnishings is to their store or business. 80 percent responded such products are very to moderately important to their business. Additionally, the same buyers group was asked whether they were looking to purchase sustainable products while at Las Vegas Market and 55 percent said yes while another 21 percent stated they were considering it.

Hiller says that this study is a kind of neon arrow pointing the industry towards what needs to be done. “It’s an awareness issue. Many people have the expectation that products making a green claim will cost substantially more,” he quip. “It’s squarely back on us to develop these products and bring them to market, because in most cases it does not cost more.”

World Market Center Las Vegas, which sponsored the study, has been aware of sustainability’s viability, and continues developing programs in support of eco-friendly projects.

“With the eco-economy coming fast, we realise that there is an increasingly important need for our industry to have current information, which empowers both manufacturers and retailers to respond to the expectations of their environmentally-conscious customers,” says World Market Center Las Vegas President and CEO Robert Maricich. “Through a continued partnership with SFC, we are committed to providing education and showcasing innovation in sustainability, and are currently planning new, expanded initiatives for the February 2010 Market.”

Demographics

While it is evidently worthwhile to produce environmental friendly furniture, manufacturers and designers should note that all of the consumers surveyed were female homeowners, between the age of 30 and 60. But despite the narrow demographic limitation, it goes to show that this group of consumers are most likely to purchase products with a green story, at a comparable price.

Traits of interviewees surveyed Data collected the week of August 10, 2009