Friday, September 3, 2010 13:44

Eco-Shoppers of the Decade

The mainstream “green wave” that began in America and Europe has become readily understandable in Asia, incorporating yoga, non-new age spirituality, and adventure…all off which has marketability. Liz Smailes looks at a new breed of eco-minded shopper and interviews Adam Horler, an environmental pioneer based in Singapore and newly appointed president of LOHAS Asia.

Green consumers don’t just think about green, they think about jobs, and love, and family, and travel, and fun etc. It’s about living a good life that also happens to be good for others, and our planet. Today, more consumers than ever are using their purchasing power to make a genuine statement about their concern for the environment. Combined, they make a dedicated group, fond of everything from organic potatoes to hybrid cars, and marketers have given them their very own name to wear as a badge of honour; ‘Lohasian’.

Derived from the acronym ‘LOHAS’, which stands for Lifestyles of Health and Sustainability, ‘Lohasian’ describes a person whose purchases are driven by values and attitudes about their own health, the health and wellbeing of their community, and, importantly, the broader health and sustainability of the natural environment.

This marketing term, originated by the Natural Marketing Institute (NMI) at the turn of the millennium marked the defining of an era…or at least the defining of a very powerful demographic. NMI realized that three seemingly disparate consumer groups – spiritual folks, environmentalists, and health fanatics – had very similar purchasing patterns.

Once NMI pooled the buying power of all these groups into a study of one large consumer base dubbed LOHASians, the corporate giants of America finally realized there was real money to be made in doing right by communities, wildlife and ecosystems. According to NMI, that “real money to be made” was about US$ 209 billion. LOHAS was designed to help companies speak the language of this newly defined group.

Today, academic Lohasian researchers frequently generate reports that confirm the LOHAS trend is no mere shift in demographics but rather a wave of cultural transformation altering the very roots of American business, politics and society. That wave is rippling to Asia and the announcement in October 2009 for a LOHAS Asia head office in Singapore confirms it.

LOHAS in America represents the once-emerging, now emerged, multi billion dollar market of mostly women, whole foods-type soccer moms. Research reports produced in the early stages predicted LOHAS would have an estimated $209 billion U.S. marketplace for goods and services focused on health, the environment, social justice, personal development and sustainable living. The consumers attracted to this market represent a sizable group in this country. Approximately 19% percent of the adults in the U.S., or 41 million people, are currently considered LOHAS Consumers. This is based on surveys of the U.S. adult population estimated at 215 million.

Research shows that one in four adult Americans are part of this group—nearly 41 million people. These consumers are the future of your business and also the future of progressive social, environmental and economic change in this country. But their power as a consumer market remains virtually untapped.

That has since expanded to be a $300 billion market in the USA alone. To the LOHAS consumer, the brand and the company are inseparable. For them, the decision to buy has three critical points:

• Pre-purchase – is this a company and brand whose mission and values I support?

• Point of purchase – does this product or service meet my needs for the right price?

• Post-purchase – is this packaging recycled or recyclable? Are the profits from my purchase going to be used ethically and responsibly?

Like everyone, Lohasian Leaders are interested in how well a product or service works and how useful it actually is, but they’re looking for something above and beyond this. They want to be sure that the companies they buy from are following socially and environmentally just philosophies, much like themselves. The pioneers are now entering the Asian territory and the movement is about to take a leading edge on a very powerful market.

In the president seat of LOHAS Asia is Adam Horler. Hailing from England, his impressive CV includes top director and executive positions with the Asian offices of L’Oreal, Molton Brown, Red Earth Productions, and even a 10-month stint nine years ago as a professional rugby player in Hong Kong.

THE INTERVIEW

Liz Smailes: How did you first become involved with LOHAS?

Adam Horler: I was introduced to Ted Ning, Executive Director of LOHAS in the States last year [2008], and we were having a long skype chat last December [2008]. As we talked it became clear that we shared the same values and beliefs and so Ted suggested I partner LOHAS in Asia-Pacific to help spread the movement.

LS: How does LOHAS differ from other groups with the similar aims and ideals?

AH: I presume you mean environmental, “save the planet” groups when you say that? We differ in that we do not push a specific cause or causes (WWF – Panda, Tiger, Forests for example), and we are not a lobby group. LOHAS is specifically concerned with how people buy stuff and how they can do so in a more responsible manner, thereby Saving the Planet and ourselves along the way.

I see LOHAS as a big tent under which we gather all interested parties in this quest – businesses producing goods and selling services, consumers who are the end point and also governments and NGOs who help to spread the larger message.

LS: On becoming the first President for LOHAS Asia and creating the first LOHAS Region in Asia, what does this mean to you and what are your plans for the first branch of LOHAS in Asia?

AH: Personally, I feel as if I have found a true purpose for my life, at the late age of 39, and that all my corporate experience has been preparing me for this. To make a difference whilst utilising all the contacts and skills I have picked up along the way in business.

The tie up with the Kranji Countryside Association (KCA) in the West of Singapore (the largest remaining farming area in Singapore) is truly meaningful as we can provide a physical embodiment of LOHAS to ordinary Singaporeans. We are aiming to establish a LOHAS Centre in Kranji, showcasing outdoor living, sustainable building and energy, small scale non-pesticide veggie gardens, as well as collaborating with the KCA to organise events such as community walks, bike rides, Family Days Out in the countryside etc.

At the same time, we are deeply tied to the business community and we are conducting large scale consumer research in Asia as well as establishing an online Hub for all LOHAS-oriented businesses. We will be employing local staff and using intern programs to enable the next generation of Singaporean workers to start out on the LOHAS track.

LS: Why was The Kranji Countryside Association chosen above other areas in Asia?

AH: From a business perspective, we located in Singapore to take advantage of its regional business capability and also its proximity to Malaysia and Indonesia, the battleground for conservation and sustainable use of natural resources.

Singapore is also a great place to showcase a LOHAS region on the edge of a city, in a controlled environment (Singapore is small). If we can successfully establish the LOHAS Region as an educator for ordinary Asian consumers then we can replicate the idea throughout Asia.

The KCA is a great organisation, struggling to give the farming community in Singapore a voice. I also like the way that their ideals are to develop the countryside in a way that co-exists with Nature, not riding roughshod over it.

LS: Are you prioritising specific market sectors?

AH: Typically, LOHAS is easiest applied to everyday consumer goods markets – things we buy everyday. So this means food, clothing, toiletries, household cleaning. This is big business and as such we work with business on the back end of things as well – water use, energy, building design, transport even.

LS: What are some of the milestones you are setting out to achieve?

AH: We will be publishing our initial market research reports (conducted in partnership with the Natural Marketing Institute from the US, who have conducted 7 annual LOHAS studies in the States and 6 in Japan) in Q2 2010. These will be for sale by individual market as well as a regional report. We are surveying China, S.Korea, HK, Thailand, India, Philippines, Malaysia, Singapore and Indonesia.

Our website will be up and running by the end of January as well – www.lohas-asia.org – this will be a combination of latest industry news and also a dynamic business hub for all companies and individuals in the business of health and sustainability to meet, talk, trade and prosper.

The last step will be online engagement of the individual, creating powerful social networks where Lohasians can congregate, share ideas and mobilise.

LS: Wherein lay the challenges and differences in implementing the goals in Asia compared with America?

AH: The great advantage of America is that it is a largely homogenous market for consumer goods and brands, meaning you can get scale very quickly. Although Asia is huge in terms of population, it is complex with so many cultures and the fact that the consumers are really all concentrated in 31 cities in Asia-Pacific.

So, for LOHAS to gain traction in Asia-Pacific and become the rallying call for all environmental companies and consumers alike, we have to go slowly, one market at a time. But then again, if a trend catches fire in Asia it really catches fire, so if we can appeal to the hearts and minds of today’s Asian consumer there is every chance LOHAS will be the rule by which people live their lives.

LS: Who are you reaching out to join the community?

AH: A mixture of regional MNC’s and SME’s/entrepreneurs. If you have a goal to do business in a sustainable manner, then you are the types of companies we want to reach out to.

LS: How can people in Asia become more involved with LOHAS?

AH: In the short term, e-mail me at adam@lohas-asia.org and let’s start a conversation. There is no one more powerful than YOU in the fight against climate change. If 5% of the Asian population acted as one, we could change the world!

adam@lohas-asia.org