Current Sustainable Trends That Drive Your Business in China
Authored by: Sanni Rajaniemi
The awareness and support of sustainability has risen recently, as China supports the 2030 agenda and is aiming to achieve peak carbon emissions by 2030. China’s next target is to achieve carbon neutrality by 2060. There are many laws and policies on eco-environmental protection to help fulfill the country’s dual carbon commitment, and other actions are taken. The evolving landscape of China has led to changes in customer behavior and government policies. This blog focuses on the biggest current trends in China that drive its sustainability development.
1. Sustainable Spending
According to an article by United Media Solution, Chinese consumers are now more aware of sustainability than ever, meaning they expect brands to take more steps to protect the environment. This is heavily due to China’s environmental education and mass media’s contribution. As a result, consumers’ willingness to pay more for sustainable products has increased.
When marketing in China, a strong brand story is important. Your brand would benefit if it goes hand in hand with the customers’ values, especially among the younger generation who want to relate to your brand and know that it has a good sustainability policy. Therefore, consider integrating environmental, social, and governance (ESG) commitments into your brand identity during the early stages of brand building in China.
2. Clean Energy
China is committed to reducing air pollution and is the world leader in renewable energy. As a result, the shift towards clean energy brings opportunities for renewable energy companies and their technologies and services. Many corporations in China want to lower their carbon footprint by buying clean energy.
It would be smart to consider using clean energy, since it enhances your company’s reputation and brand image. It also helps the company to comply with environmental laws. Companies that utilize clean energy are more attractive to environmentally conscious investors and consumers, and it gives your company a competitive edge too.
3. Electric Cars
Alongside clean energy, China is a world leader in the electric vehicle (EV) market as well. According to CGTN, China’s new energy vehicle sales were the largest in the world for eight years in a row by the end of 2022. New energy vehicle sales have increased by 93.4% since 2022 compared to 2021. The future of the markets looks very promising for electric car manufacturers in China, though they are also competitive.
Electric vehicles are one of China’s consumer trends since customers are more aware of the impact of their purchases on the environment and are purchasing more eco-friendly products. The auto market in China is moving towards electric vehicles as the most popular choice for a vehicle. Therefore, if you are in the vehicle business, take into consideration the growing eco-consciousness in China and adapt your strategies accordingly.
Forestation, including forest restoration, reforestation, and afforestation, presents significant opportunities for businesses that align with sustainability goals and relate to their consumers. Chinese citizens are voluntarily planting trees, and there is also a national tree planting day in the country on March 12th. This collective effort has resulted in 78 billion trees planted across the country from 1982 to 2021. Additionally, in 2022, 3,83 million hectares of new forests were planted by the Chinese. To facilitate green development in the country, China revised its forest law in 2010. China’s long-term plan includes increasing its forest coverage rate to 26 percent by 2035.
Consider participating in the tree planting efforts as a part of your branding strategy, as sustainability is important for today’s Chinese customers. Participating in forestration projects helps create a positive brand image, which can lead to more customer loyalty and trust. Partnering up with environmental organizations would also be a great idea for companies to build trust among environmentally conscious consumers.
To conclude, China’s pursuits towards sustainability are redefining market dynamics. From clean energy to forestration, there are various opportunities for companies operating in China to build a positive and strong brand reputation. By embracing China’s eco-consciousness, businesses can tap into a growing market easily and effectively.
In the end, it is necessary for companies in China to include sustainability goals in their strategies. There is a lot of potential in sustainable partnerships and responsible activities. Companies must grow along with China’s efforts towards a sustainable future.
Hohot Consulting Oy supports you when entering the Chinese market, in sustainability development, marketing and communication, localization, etc., providing expertise and strong and extensive knowledge of the Chinese markets. Learn more about us here.