Southeast Asians embrace sustainable consumption

Consumers are sensitive to the price and durability of their purchases.

Sustainable tourism and consumption have been gaining traction in Southeast Asia, according to a recent year-end survey by Blackbox Research and ADNA. The survey covered over 9,000 respondents from six Southeast Asian countries and revealed that 9% of respondents believe that adopting intentional spending patterns around more durable and sustainable products is necessary.

The 2022 Blackbox survey of Southeast Asians residing in Singapore, Indonesia, Malaysia, Thailand, Vietnam, and the Philippines also revealed that 90% of respondents felt the need for cultural and environmental preservation as part of a country's tourism goals. This trend for sustainability has not disappeared in 2023, despite ongoing challenges such as inflation, jobs, and the Russia-Ukraine conflict.

The rise of sustainable consumption has its roots in environmental concerns, particularly how constantly increasing consumption puts enormous strain on natural resources. However, in 2023, sustainable consumption may also be marked by economic or financial concerns.

Rising inflation has put a dampener on consumer spending, with 44% of Southeast Asians in the year-end poll feeling that inflation is a major issue for their countries.

Consumers are now becoming more price-sensitive, looking for affordability not just in terms of price but also in durability. Sustainable e-commerce is on the rise, with businesses making dedicated efforts to promote sustainability within their processes.

Businesses are likely to attract a growing consumer base that is looking for an environmentally friendly product and has been conditioned towards a digital shopping experience.

Consumer sensitivity towards the durability of their purchases has also increased. Consumer rights groups in the US and Europe are advocating for the "right to repair" of electronic devices. Consumers are aware that electronic devices, such as smartphones, have gone from having detachable/replaceable batteries to in-built/very-difficult-to-replace ones.

An argument that supports consumers' right to repair is that it has the potential to decrease the expenses related to repairing. Denying the right to repair has led to artificially raised costs for repairs as tech firms do not share spare parts or knowledge with non-official repair shops. This has resulted in consumers buying new devices instead of repairing their existing ones, leading to massive electronic waste.

The push for sustainable tourism and consumption is a positive sign that people are taking responsibility for their impact on the environment. As consumers become increasingly price-sensitive, tech companies may find it prudent to make repairs an affordable option. Offering the right to repair could be a way for companies to gain favour among consumers in the current market.