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Highlights
- 85% made behavioural change in the last 12 month
- Demand transparency and traceability
- 71% look for environmental content on the label
- More than saying, proving how is equally important to them
- They are forcing brands to change their communication strategy
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In the current scenario, Gen Z consumers value products differently. They want to know the journey behind the final products. For Gen Z, the process of making a product is just as important as what it says on the label. From food to fashion and even tech, Gen Z is calling for more transparency and traceability from their brands. This demand is more than a trend; it is a feature of a generation committed to being environmentally and ethically responsible.
A recent study by Hansa Research shows us that a new shopper group is knowledgeable about their values and intent. Nearly 85% of respondents indicated they enacted lifestyle changes over the past year to align their everyday choices with their values. These changes show a shift in behavior, like less plastic use (78%), a change in recycling habits (61%), and even the use of green modes of transport and local green initiatives. This degree of behavior change shows that sustainability is now a value of Generation Z shopping in the marketplace.
These transitions are coming from personal practices which are driving their purchasing choices. Nearly 71% of respondents agreed that they always account for a brand’s environmental designations prior to making a purchase, and an additional 23% said they occasionally consider this.
This certainly highlights the increase in values-based buying. Gen Z wants brands to say more than what they are selling; they want to know how it was made, where it is coming from, and who made it. Blindly following the Brand Labels, do not hold any meaning now. Shoppers have the expectation that they can read a clear, traceable story supporting whether or not a brand is authentic.
In this study, 88% agree that brands should be more environmentally accountable, which tells us something about Gen Z’s expectation that ethical operations and sustainable practices come with a price tag. This generation wants brands to go green; they want them to prove or show that they are doing it. Certifications, verified transparencies, and open supply chains are going to be valuable differentiators among brands that customers trust.
Impact of Collective Awareness
To be sure, this focus on brand accountability does not negate personal ownership. In fact, 81% of respondents think their own actions matter, making for an intersection between consumers’ sense of ownership, accountability, and responsibility, and brands’ expectation that consumers will be responsible at the same time.
From Gen Z’s point of view, sustainability is not a requirement of organizations alone; they are co-stakeholders in the change. This collective awareness is fundamentally changing the marketing, product development, and communication work brands do in the future.
They see traceability as the new competitive advantage. Every step from sourcing ethically, carbon-neutral logistics, and all parts in between can be tracked and validated, which builds trust (and ultimately loyalty) as we pay more attention to how our products get made and how they get to us. In a world moving towards hyper-aware, digitally connected marketplaces, brands that fail to communicate transparently are going to be publicly challenged; brands that lead with honesty and transparency are going to be rewarded with Gen Z loyalty.
The Gen Z desire for transparency is not merely sustainability. This generation truly wants to support companies whose actions match their claims. With sustainability and ethics at the forefront of people’s minds, this demand is changing the ways brands operate to stay relevant.
The message is clear: brands must go beyond the label. In a world of conscious consumption, it is not only the product that people are judging, but also the way the product is being made.
Hansa Research is the largest Indian Consumer Insights Provider, which has been in the business of insights and analytics for over 40 years, having undertaken client assignments in over 100 countries. It is the first Indian insights and consulting company to acquire a US-based firm, GCR (formerly called Gartner Custom Research).
The multi-national company is headquartered in India has offices in Singapore, Germany, USA, and Bangladesh. Hansa Research Group is a part of R K SWAMY | HANSA Group of companies, which are India’s leading multi-discipline, multi-location, marketing communications, and services groups, serving the needs of a wide array of companies globally.
Praveen Nijhara, CEO of Hansa Research
