Indonesian consumers display a strong social conscience when buying goods and services
Sustainability claims and active marketing of corporate social responsibility drives sales
JAKARTA, June 19, 2014: Consumers in Indonesia are socially-conscious when it comes to purchasing goods and services, and a majority say they check product packaging to gauge a brands’ commitment to making a positive social and environmental impact, according to the recent Global Survey of Corporate Social Responsibility conducted by global information and insights company, Nielsen.
The survey found that more than 6 in 10 consumers in Indonesia (64%) are more willing to pay extra for products and services that come from companies who are committed to making positive social and environmental impact. This compares to a global average of 55%.
The Nielsen Global Survey of Corporate Social Responsibility polled 30,000 consumers in 60 countries* to understand: how passionate consumers are about sustainable practices when it comes to purchase considerations; which consumer segments are most supportive of ecological or other socially responsible efforts; and which social issues/causes are attracting the most concern.
Consumers are looking to brands to convey their stance on social and environmental causes on their product packaging. Before deciding to purchase a brand, 62 percent of Indonesians check product packaging to ensure the brand is committed to a positive social and environmental impact. “Consumers are looking for brands which are committed to making a difference, and they’re highly influenced and informed by packaging when it comes to recognising socially and environmentally conscious brands,” observes Catherine Eddy, Managing Director for Nielsen in Indonesia. “Brand owners need to help these consumers in their purchasing decisions by clearly stating their position and commitment to such causes.”
Beyond merely expressing concern around social and environmental causes, consumers are putting their wallets where their hearts are, and adjusting their purchasing habits to support brands which are making a genuine effort. In the past six months, 62 percent of Indonesian consumers purchased at least one product or service because it was made by a company committed to a positive social and environmental impact. And 75% said that they preferred to work for a company that is committed to a positive social and environmental impact.
Regarding social and environmental causes, more than three quarters of Indonesian consumers are highly concerned with eradicating extreme poverty and hunger (82%), promoting racial, ethnic and cultural inclusiveness (81%), Increasing the focus of sourcing products we consume sustainably (81%), combating HIV/AIDS, Malaria and other diseases (80%), reducing child mortality (80%) and ensuring environmental sustainability (80%).
Across Southeast Asia, consumers in the Philippines and Vietnam are among the world’s most socially-conscious when it comes to purchasing goods and services. Eight in 10 consumers in the Philippines (79%) are more willing to pay extra for products and services that come from companies who are committed to making positive social and environmental impact, the highest globally, as are close to three quarters of consumers in Vietnam (73%), third-highest globally. A further 71 percent of consumers in Thailand are willing to pay extra for brands which are committed to social and environmental causes, 65 percent in Indonesia, 57 percent in Malaysia; compared to 55 percent globally. Only Singapore is lower than the global average with 48 percent.
“Propensity to buy socially and environmentally responsible brands is relatively strong in Indonesia, as well as across all of Southeast Asia.” notes Catherine. “Apart from the fact that there are still many people faced with extreme levels of poverty and frequently encounter the impact of natural and environmental disasters, the value of social responsibility and giving back to society is also an important part of the culture in many of these societies, and this is having an influence on their purchasing decisions.”
*The findings in this survey are based on respondents with online access in 60 countries. While an online survey methodology allows for tremendous scale and global reach, it provides a perspective only on the habits of existing Internet users, not total populations. In developing markets where online penetration is still growing, audiences may be younger and more affluent than the general population of that country. In addition, survey responses are based on claimed behavior rather than actual metered data.