Climate change and environmental pollution are pushing consumers toward sustainable choices, creating a pressing need for businesses to adapt. The original article by Vu Phong Energy Group highlights how shifting customer behavior toward green consumption forces companies to rethink their operations. This analysis explores the tangible impacts of green lifestyle trends on corporate strategies, emphasizing the urgency for businesses to adopt eco-friendly practices to remain competitive. By examining global and Vietnamese market examples, we reveal actionable insights into aligning business models with sustainability demands.
Climate change has, in recent years, become an increasingly severe worldwide concern in the context of environmental pollution; the green lifestyle has drawn attention to many people. The movement of users towards sustainable consumption strategies means that businesses must likewise ‘convert’ to a ‘new normal.’
Trends of Green Lifestyle
Green living and green consumption practices are growing increasingly popular in many regions, especially in industrialized countries worldwide. This trend is rapidly spreading to emerging economies with medium and higher incomes. It is seen as a practical and necessary application of sustainable consumption to reduce environmental impact on society.
Green consumption involves the procurement and use of environmentally friendly products that do not harm human health or jeopardize the natural environment. It is based on the goal of preserving resources for future generations and improving the quality of life for people. Green products and eco-friendly products are prioritized in green consumption and are considered criteria for high-quality products and services.
The 2019 consumer trends report indicates that most customers are willing to spend more on food products packaged in environmentally friendly materials. Meanwhile, a survey by the market research firm Nielsen revealed that 86% of Vietnamese customers are willing to pay extra for brand products that positively impact society and the environment. The average rate for Southeast Asia is 76%. Companies’ commitment to environmental responsibility also influences 62 percent of Vietnamese customers’ buying decisions, highlighting how green lifestyle trends impact business decisions.
New Challenges for Businesses
Climate change and the rising prevalence of green lifestyles have brought about significant business change in the manufacturing sector. For instance, in the fashion industry, multinational corporations like Nike, Adidas, Zara, H&M, and Levi’s have taken action to reduce environmental stress and mitigate climate impact. By 2025, Nike has committed to using 100% renewable energy in its factories; Zara undertakes to create items only using organic or recycled cotton, linen, and polyester by 2025, limiting environmental damage during production; H&M currently has 35% of its products made from recycled materials, with the objective of exclusively using such materials by 2030. BMW has also launched the BMW i3 electric car, reflecting a sustainable production trend, where 95 percent of the vehicle structure is recyclable, produced using techniques that save 50 percent energy and 70 percent water. By 2020, the IKEA interior design company had progressively removed single-use plastic goods in its shops and restaurant networks, aiming to reduce its overall product impact by an average of 70 percent by 2020-2030. Many international corporations are seeking to use 100% renewable energy for all their operations.
The rise of green living and green consumption also presents Vietnamese companies with new challenges to align with the overall development trend and boost their position and competitiveness in domestic and global markets. To gain admission into “difficult” markets like the US, Europe, and Japan, besides maintaining product quality, companies must meet “green” criteria. These criteria include standard waste handling, energy saving, waste recycling solutions, and other factors, enabling them to benefit from favorable tax rates when exporting goods to these markets.
Even in the domestic market, which with 100 million people is one of the world’s most attractive retail markets, many companies have “transformed” and chosen to be “green-oriented” and clean as a competitive advantage in the face of increasing customer demand. Many businesses have carefully invested in technologies and manufacturing lines to enhance green production and sustainable development processes. In many plants, renewable energy systems have been installed to actively utilize clean energy and implement solutions in the manufacturing process to save electricity and water. Many grocery stores and companies involved in the manufacturing and distribution of “green” products have made this a top priority in the F&B sector, and single-use plastics are being replaced with environmentally friendly products and packaging.
Green lifestyle has become a global trend (Source: Internet)
Green consumption and green lifestyle trends are expected to continue expanding sharply in the coming years. The shift towards green production to meet market demand at the right moment is thus the foundation for companies’ sustainable growth. Moreover, green initiatives also demonstrate a company’s responsibility to the community and society for joining forces to preserve the environment and its characteristic ecology.
The two critical areas of the Vietnam Green Growth Action Plan 2014-2020 include greening production and green lifestyles, alongside sustainable consumption. According to this plan, the Prime Minister approved the National Green Growth Action Programme for 2014-2020, which involved four primary issues, twelve Working Groups, and 66 specific action tasks. The four critical areas included: (1) Institutional building and local green growth strategy; (2) Reducing greenhouse gas emissions in intensity and encouraging clean and renewable energy use; (3) Greening production; and (4) Greening and sustainable consumption. The implementation of the Green Growth Strategy in Vietnam has been evaluated by competent authorities and has yielded numerous positive results. The Ministry of Planning and Investment is currently developing a National plan for green growth for 2021-2030, with a vision for 2045, which was due in June 2021, and is often referred to as the Vietnam green growth plan 2021-2030.
In the context of the COVID-19 epidemic, many countries are promoting economic growth in the direction of green growth or “green recovery.” For Vietnam, the shift to a green economy and green growth is an inevitable choice and an opportunity to become a pioneer in the region, catching up with global development trends.
