Sustainability & Affordable Price Point: The Ultimate DTC Beauty Brand Concoction Powered by the Gen Z
Gen-Z consumers have higher asks from brands in general. It is no longer enough that a product or service works well for it is now also vital that the brands they support are both civically & socially responsible, eco-friendly, both inclusive, and diverse, just to name a few.
It is also for these reasons that DTC brands are being driven by this generation. Because the direct-to-consumer business model allows its customers to build relationships directly with the brands, the customers are being given the opportunity to get a very close look at the brands’ operations, call out what they don’t like, and applaud what they love on social media.
Sustainability is Key for the Gen Z
In April 2021, Forbes Magazine labeled Generation Z as the sustainable generation. It is the generation where 73% are willing to shell out more cash to purchase products that are sustainable.
As the “inheritors of the Earth”, it makes a lot of sense why Gen Zs are very concerned about the environment. Adding to the fact that the oldest of their generation has turned 25 this year, Gen Zs are now emerging into young adults who have started to contribute to the workforce and the economy all the while carrying with them their commitment to sustainability– their choices to cut down on consumption, reducing their carbon footprint, their support to small and local businesses, their pride in thrifting, among other decisions to put the planet first like no other older generations every did.
At this point, it only makes sense that brands must make their moves to shift to the sustainability route if they haven’t yet. Aside from the fact that it’s a wise move to take in order to stay relevant and profitable in the years to come, but also because the Gen Zs have also shown to influence not just their generation but even the older ones. As a result of Gen Z’s influence over their Gen X parents on the issue of sustainability, Gen X consumers’ preference to shop for sustainable brands increased by 24 percent, and their willingness to pay more for sustainable products increased by 32% percent since 2019.
Furthermore, as of this writing, a research conducted by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania shows that nearly 90% of Gen X consumers said that they would be willing to spend 10 percent extra or more for sustainable products, compared to just over 42% two years ago.
The Race in Offering Affordable Price Points
Gen Zs are becoming known to be the faster ones to acclimate and adjust to situations presented to them. Also known as the generation to quickly learn from the past mistakes of previous generations, they are much wiser when it comes to their spending habits.
Gen Zs witnessed their Gen X parents struggle with the Great Recession and are still seeing the Millenials work very hard to pay off their student loans. With both of these in mind, the Gen Zs perception of money has been shaped.
While previously mentioned that Gen Zs are willing to pay more for sustainable products, it does not mean that they are willing to spend a lot of money on things just because. Their requirements for sustainability are heavily charged on the fact that they want to get their money’s worth. More than just getting their desired function of a product or service, the justification of their purchases also encompasses the values they deeply care about such as the impact of the brands they support on nature and other people’s well-being.
These factors in mind pose the challenge of offering sustainable products at affordable price points.
Emerging DTC beauty brands are now starting to circulate in the eCommerce market and the consumers are welcoming them with incredible hype case in point is the beauty brand FieldTrip by Edgewell which boasts about their luxury formulation at an affordable price point.
Edgewell has only launched the brand this early this month and everyone in the beauty space has already been raving about it.
Is it really that difficult to be sustainable and affordable at the same time?
Now that a couple of brands are causing a major disruption in the beauty industry, time can only tell if the rest will follow suit. As of this writing, one of the most popular affordable beauty brands The Ordinary by Estee Lauder has always been transparent that while they are very affordable, they are still not considered sustainable but they have ongoing initiatives that are geared towards becoming a sustainable brand.