Rise of the Sustainable Consumer in Southeast Asia

In mid-2022, a Blackbox survey of Southeast Asians residing in Singapore, Indonesia, Malaysia, Thailand, Vietnam, and Philippines highlighted a welcoming trend – that of sustainable tourism. Overall, 9 in 10 (90%) Southeast Asians felt the need for cultural and environmental preservation as part of a country’s tourism goals. 

The desire for sustainability has not disappeared in 2023. In year-end polling conducted by Blackbox Research and ADNA covering over 9,000 respondents from the same 6 countries, the push for sustainable consumption is clear, with 9% of respondents believing that adopting intentional spending patterns around more durable and sustainable products is the need of the hour. Sustainable consumption continues to gain traction despite ongoing challenges such as inflation, jobs, and the Russia-Ukraine conflict. 

Going beyond the Environment 

While sustainable consumption has its roots in environmental concerns, namely how constantly increasing consumption puts enormous strain on natural resources, sustainable consumption in 2023 might be marked by more economic or financial concerns.  

Rising inflation has certainly placed a dampener on consumer spending. In the same year-end poll, 44% of Southeast Asians felt that inflation is a major issue for their countries. Even during the recent Chinese New Year festivities, which is known for an uptick in spending, consumers are spending less due to rising prices.   

Consumers are now being forced into reconsidering their spending habits. Gone are the days of buying cheap products, using them for a short amount of time, throwing them away, and buying new replacements. The 2023 consumer is more price sensitive, looking for affordability not just in terms of price but also in durability.  

Sustainable E-commerce 

Consumerism will not disappear in 2023, but there will be a rise in sustainable e-commerce businesses. Beyond simply making “about us” pages with declarations of sustainability, these e-commerce businesses have made dedicated steps to promote sustainable practices within their business processes. From reducing and/or using biodegradable packages to ethical sourcing and using recyclable materials in production, sustainable e-commerce businesses are likely to catch the eye of a growing consumer base that is looking for an environmentally friendly product yet have also been conditioned towards a digital shopping experience.  

Right to Repair 

Whether buying from sustainable e-commerce businesses or everyday shops, consumers are now more sensitive about the durability of their purchases. Both in the US and Europe, consumer rights groups are fighting for the “right to repair” of their electronic devices.  

Consumers are acutely aware that in the past two decades, electronic devices such as smartphones have gone from having detachable/replaceable batteries to in-built/very-difficult-to-replace ones. 20 years ago, one could go to a mom-and-pop repair shop to replace a battery and pay a small fee. Today, phones need to go to official retailers that have long queues and charge unreasonably high repair fees. Repairing at a non-official retailer voids all product warranties. 

One argument in favour of the right to repair for consumers is the potential to lower repair costs. Denying the right to repair has created a trend of artificially raised costs for repairs as tech firms do not share spare parts or knowledge with non-official repair shops. With such high repair costs, consumers are often led into buying new phones and devices instead of repairing their existing devices, even if the repair is relatively simple, leading to massive electronic waste being generated. Especially in the current scenario of yearly smartphone upgrade cycles where people are made to feel that the phones they recently bought are somehow ‘outdated’ anyway within the next 12 months.  

The practice of ‘unnecessary exclusivity’ among some manufacturers is being challenged as well. Apple, for example, was recently compelled through an EU mandate to shift from its exclusive cables to the commonly used USB-C cables by end of 2024.   

With consumers now becoming price sensitive, it may be prudent for tech companies to make repairs an affordable option. It will only take one competitor to offer the right to repair for that company to gain favour among consumers today.  

Sustainable consumption might be losing its more altruistic environmental roots in favour of financial considerations. Yet, it does not change the fact that consumers are looking for affordable options in 2023. To learn more about how businesses can find opportunities in this newly redefined sustainable consumption practice, reach out to us on connect@blackbox.com.sg