Changing consumption patterns – how the sales season and holidays are affected

As sustainability issues have become increasingly central to the public debate, Swedish consumers' awareness of their own impact on the environment has also increased. This has resulted in many consumers now prioritizing sustainable alternatives when shopping, and they are more inclined to support companies that take responsibility for their environmental impact. Sustainable consumption – socially, economically and environmentally – is also one of UN global goals. At the same time, many households are struggling with deteriorating personal finances as a result of interest rate increases and inflation.

So what do changing consumer habits mean for our industry? Especially when this year's sales holidays, Black Friday and Singles Day, are just around the corner and then Christmas shopping, which is normally a sales holiday for parts of our industry. Of course, it is difficult to predict the future, but experts from the industry organization APPLiA do not believe that the focus on sustainability will necessarily affect consumers, especially not when we are also in a difficult economic situation.

— Economic caution will likely affect this year's sales and Christmas shopping more than the climate issue does. Consumers may be more selective in their purchases and choose to invest in higher quality products that last longer, instead of chasing the cheapest offers. Such a choice may provide security rather than less guilt for consumption, predicts APPLiA's chairman Kent Oderud.

— Our industry has a high focus on sustainability and many consumers are aware of the positive environmental effects that switching to a more energy-efficient white goods can have. But as I said, the recession suggests that the wallet can dictate choices. For some households, this means that the cheapest product wins at the moment, even if one of higher quality, long life and lower energy consumption would provide security and profit in the long run, he continues.

Representatives from APPLiA's member companies also believe that the private economy has a greater effect on trade right now than the climate debate.

"The biggest changes we see in Swedes' consumption patterns are primarily attributable to personal finances. Increased costs in general mean that consumers are thinking extra carefully before making purchases, especially when it comes to non-durable purchases such as household appliances or other home electronics," adds Peder Qwist, Nordic Manager at Severin.

Another consequence of the economic downturn and increased inflation is decreases in new construction and renovations such as APPLiA previously reported on. This will of course have effects on our industry.

"Even when it comes to renovations, a changing attitude is noticeable, and more and more people are questioning the reasonableness of renovating and replacing fully functioning appliances in a relatively new kitchen. At the same time, it is becoming important to reduce energy consumption, which can balance out decisions a bit," says Kent Oderud.

The trend towards a sharp decline in new housing production will of course also lead to a decline in the volumes of deliveries from companies in the industry going forward. However, when it comes to the purchasing patterns themselves among construction companies, these are often guided by procurements with long validity that already take proper account of the lowest possible environmental impact, energy efficiency and long service life backed up by long warranty periods.

So how are APPLiA's member companies affected by our changed mindset?

"We are not making any strategic changes to our marketing as a result of the climate debate or the economic situation. However, there is obviously a lot happening in the production line where we are looking across the entire value chain to ensure better sustainability and less climate impact for our products," concludes Peder Qwist, Nordic Manager at Severin.

Are you planning to focus more on the environment in your marketing? Then consider this!

An environmental claim is assessed based on the average consumer's overall impression of the marketing.
Remember that you should be able to prove the average consumer's impression of the marketing, not just what you intended to convey.
Use clear and unambiguous claims that you can verify. Environmental claims have a high standard of proof.
If the environmental claim is not clear and unambiguous, it must be explained
The explanation of an environmental claim must be in close proximity to the claim. For example, it is not enough for a clarification to be ”one click away” on a website.
Environmental claims in marketing must be factual and truthful and must not be misleading.
Do not use environmental claims that are misleading even if they are factually accurate. For example, if the environmental benefit is not as great as the claim suggests.

Source: Swedish Consumer Agency

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