Singapore and South Korea most willing to invest in sustainable and inclusive brands

Gen Z also pays more for sustainable and inclusive brands than older generations.

Singapore and South Korea topped the list globally in consumer willingness to invest in brands committed to sustainability and inclusivity, according to a recent study conducted by Vlerick Business School.

Conversely, countries such as Belgium, Germany, The Netherlands, Sweden, and the United Kingdom show the least enthusiasm for paying premiums for such brands.

The study, led by by Professor Frank Goedertier from Vlerick Business School, alongside Professor Bert Weijters from Ghent University and Joeri Van den Bergh from Human8 and Vlerick Business School, surveyed 24,798 individuals across 20 countries and Hong Kong.

“Traditionally, many companies have invested in creating brands that are perceived as ‘exclusive’ or trendy, luxurious, high-status. A core motivation for this is that there is the conviction that such brands trigger a high willingness to pay a premium,” said Goedertier.

“We wanted to find out whether positioning a brand around ‘inclusivity’ and a commitment to be sustainable and contribute positively to society, could nowadays also trigger such a consumer willingness to pay a premium, especially when targeting new generation Gen Z consumers,” he continued.

The report found that older generations such as Gen X and Baby Boomers are less inclined to pay premiums for either brand type compared to Gen Z. 

Moreover, gender differences were noted, with women showing a stronger inclination towards paying more for inclusive, sustainable brands, while men are more likely to splurge on exclusive, trend-driven products.

Goedertier noted these insights are crucial for businesses looking to tailor their marketing strategies.

“For companies aiming to attract the Gen Z market, the traditional focus on exclusivity alone may not suffice for engaging Gen Z consumers, who are also drawn to brands that make a positive impact and promote inclusivity across various demographics,” he explained.

“Similarly, companies with a large female consumer base may benefit from emphasising more sustainability and ethical practices in their branding strategies,” he added.