Sustainability
Movement Nearing
a Tipping Point
ccording to a Massachusetts Institute of Technology (MIT) Sloan
Management Review and the Boston Consulting Group survey,
sustainability movement is believed to be nearing its tipping point
as green initiatives are staying on the management agenda and
companies are reaping profits from their green efforts.
A
The survey—which had more than 4,000 managers from 113
countries as respondents—further reported the following:
Respondents who say their companies have
put sustainability on the management agenda
in the past six years.
70%
68%
41%
Respondents who say their organization’s
commitment to sustainability has increased
in the past year.
Respondents who listed customer preference
for sustainable products and services as the
driving factor that led them to go green, although it may not
always translate to customers’ willingness to pay for sustainability premiums.
31%
Respondents who say sustainability efforts
and decisions added to their profits.
“In terms of retention and recruitment, having sustainability present on your
agenda really has some cachet,” says executive editor of MIT Sloan Management
Review and co-author of the report David Kiron, adding that having a sustainability strategy makes it easier to attract and keep some of the most talented
people.
How about in your spa or business? How are you helping the sustainability
movement reach its tipping point? While you can introduce so many sustainability initiatives, it’s good to start with the basics, like energy usage. Set a company
policy to shut off all lights, devices, and equipment when not in use, particularly
after business hours and on weekends. Or, install motion-sensor and/or automatic dimming switches to help prevent inefficiently lighting areas when no one
is present. A very cost-effective upgrade is to replace all of your incandescent
lighting with new compact fluorescent bulbs.
Compiled by Justin Dobbs
Price-Driven
Millenials
Pull Back on
Spending
H
it harder by the economic
downturn than older demographics, the Millennial
generation (between the ages of 18 –
34) is pulling back on spending,
according to a biannual WSL/Strategic
Retail survey.
“This decline in Millennial spending
power presents a significant challenge
to brands and retailers who have long
considered young adults to be the
golden ticket to sales growth,” says
Wendy Liebmann, CEO of WSL/
Strategic Retail.
The report indicates that 80 percent
of nearly 2,000 respondents increasingly look for the lowest price while 60
percent will choose cheaper item over
their favorite brand. Furthermore, 57
percent search online for discounts
while 63 percent stick with brands and
stores they know they can afford.
Given the modern Millennial
market’s change in spending power,
spas and businesses need to rethink
their strategy as well as re-evaluate the
power of this generation to support
new brands. Find a way to make your
price points accessible to this specific
market through, perhaps, customized
or shorter treatments, but also explore
the potential of other markets, particularly older demographics that prove to
be more financially resilient.
June 2012
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