New Developments in Environmental Protection: The Development of Green Consumpti
Alibaba Research Institute and Alibaba Charity recently jointly released the "2016 China Green Consumer Report" (hereinafter referred to as the "Report"). Through analysis of transaction data from over 100 million products on Alibaba's retail platforms, the report reveals the scale and main characteristics of China's green consumer population. However, my country's green industry chain is still immature.
The report shows that the internet is becoming a new main battleground in the field of green consumption. By the end of 2015, my country's online green consumer group had reached 65 million.
Green consumers, as referred to here, are those who care about the ecological environment and have a real willingness and purchasing power to buy green products. They have green awareness and have already or may translate that awareness into green consumption behavior.
Analysis of consumer shopping behavior and product characteristics on Alibaba's China retail platforms reveals that the online population matching the characteristics of green consumers has reached 65 million, accounting for 16% of Taobao's active users, a 14-fold increase in the past four years.
According to Alibaba's big data analysis, the penetration rate of green consumers varies across different groups. Among them, the 29-35-year-old "hot mom" group is the most active, with almost one in two "hot moms" being a green consumer.
The report found that green consumption penetration is fastest among young people aged 23-28. Between 2011 and 2015, the penetration rate in this age group increased by 16.7 percentage points, significantly higher than the average increase of 12.8 percentage points across all age groups.
According to statistics from Alibaba Research Institute, in 2015, there were fifty categories of "green basket" products on Alibaba's online retail platform (green basket products refer to a collection of products with three green attributes: "energy saving, environmental friendliness, and health quality"). Green basket consumption accounted for 11.5% of total consumption on Alibaba's retail platform, with a compound annual growth rate exceeding 80% over the past five years.
The report argues that the development of green consumption in my country still faces bottlenecks. Currently, the industry lacks a systematic set of green product standards. Many high-tech green products are not understood by consumers. Furthermore, some energy-saving and emission-reducing products consumed may not be green at the production end, but consumers cannot judge this based on their own knowledge. Some "pseudo-green" merchants sell non-environmentally friendly products under the guise of "green," but there are currently no effective penalties.
Meanwhile, my country's green industrial chain is still immature, with room for cost reduction in logistics, production, and R&D. Consumers' awareness of purchasing environmentally friendly products also needs further improvement.
The report recommends that promoting green consumption requires the combined efforts of various economic policies, including taxation and finance, as well as the establishment and improvement of a certification system. Manufacturers should increase their R&D efforts in green products to promote green and environmentally friendly practices throughout their entire lifecycle. In the distribution sector, retailers and internet platforms should promote green consumption through tailored displays, marketing, promotion, and membership management.
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