Friday, June 17, 2011

July 2011 - SME & Entrepreneur Magazine

Part 2: “Embracing LOHAS - Unleashing the Power of Green Consumerism from Within”


The present generation, to be coined as the Green Generation that includes both Gen X and Gen Y, comprised of those born into an era filled with environmental destruction and also extensive use of eco-friendly technology in their daily life. Young Asians from this part of the world are presently witnessing on television themselves, not only the meteoric rise of Asia as the next superpower, but also the countless environmental destruction it is committing towards progressing as the major force forward in shaping the future of the new world. From the illegal deforestation in the lush tropical rainforest of Malaysian Borneo; overfishing and destructive fishing in the Philippines causing the decline of marine organisms; to the illegal logging in Indonesia that has led to a biological catastrophe by upsetting thousands of plants and animal species as well as the cause of the yearly haze phenomena that affects millions of people in the region.


Now many may wonder, what is the impact of all this destruction to the Green Generation of Asia? Growing up with all these environmental issues plaguing the quality of life as compared to the scenic and eco-friendly world that our counterparts live in the other side of the world (where the grass is often pictured in greener pastures, thanks to Hollywood and the general Western media). Does this impact the decisions and lifestyles of the Green Generation in making a shift away from their parents’ generation to embrace eco-friendly living and ensuring sustainability as the number one priority in decision making as consumers? Is there an increase in awareness from the foundations of the Asian society in acknowledging the impending biological catastrophes which seem destined to bring the world to an abrupt end come December 21st 2012? From my previous writing in Part 1 where I covered on the new-CSR and the way forward by Corporations to embrace sustainability reforms, it is clear that the drive for change by this Green Generation will ignite the push towards embracing the new corporate culture in Commercially Sustainable Reform (CSR). It is inevitable for a change in lifestyle to happen with the rise in eco-friendly consumer demand and a timely corporate reform that will center businesses and profit-making on sustainability.


What is LOHAS?

LOHAS is a recognised market segment in the USA, Western Europe and also South East Asia and defines the market split from 6 segments which include Personal Health (Health), Natural Lifestyles (Lifestyles), Green Building (Building), Alternative Transportation (Transportation), Eco-Tourism, and Alternative Energy (Energy). In a research report by the Natural Marketing Institute (NMI) in 2000 and given the moniker of Lifestyles of Health and Sustainability, or LOHAS –is a market conservatively estimated at $210 billion in the U.S., and growing every year. Approximately 19% of the adults in the U.S., or 41 million people, are currently considered LOHAS Consumers while in Japan, 12% or 17 million adults are segmented as LOHAS consumers. In Southeast Asia, the statistics of LOHAS customers indicates growth with the increase in education and awareness mainly among the Green Generation that are further changing the consumer landscape. This is opening the doors to more acceptance in sustainable health and lifestyle products, higher demand in eco-friendly property and energy efficient home interior designing, the rise in sales of electric motorcycles and hybrid cars as seen with the high number of Toyota Prius on the roads as well as the exploration by local governments with eco-friendly energy generation in Asia.

LOHAS Asia, the Movement


Lifestyles of Health and Sustainability (LOHAS) as defined from their official Asia Pacific website (www.lohas-asia.org) is a movement that aims to bring balance back to our planet by inspiring individuals and businesses to find their own unique way of being environmentally friendly.

“We believe that every person on this planet has the power to play a major role in saving the planet. They only have to tap into their own uniqueness to discover a way to contribute a sustainable lifestyle that will both improve their health and the living standard of not only themselves but all those around them” as quoted further.

LOHAS is present in countries throughout Asia and is surely getting momentum in the push forward to spearhead a change in mind set by adapting lifestyle change within the smaller Asian communities. LOHAS Asia, spearheaded by its president Adam Horler is currently present in Singapore, Malaysia, New Zealand, Shanghai, Australia, Bali and Hong Kong.


The LOHAS Journey


According to LOHAS Asia; for the average person, the LOHAS journey begins with an awareness that they are not doing enough to care for their personal well-being. Initially our motives are selfish – to live a long, healthy, active life. In order to do this we need to do what we can to avoid sickness and frailty, for as long as possible. There are three main strategies to achieve this – moderation/avoidance, good eating habits and exercise. As we embark on the path of wellness by following these strategies we naturally become more aware of the environment. How does this happen?

As we take care to eat healthily, we start to examine what is in our food and what it is made of. This naturally leads to a need to know where it comes from, as only then can we verify its authenticity. So as we start asking these questions we become exposed to the debate around organic food, pesticides, growth hormones, antibiotics in meat, red meat versus white meat and so on. All these issues have an environmental impact and lead us into a greater subject – The Planet, and how we treat it.

So, Lifestyle choices have leaded me to examine my Health, which has leaded me into questions about the environment which, inevitably, leads to issues of Sustainability.


R U LOHAS? Campaign


LOHAS Asia has launched a public awareness campaign “R U LOHAS” to inform the public on how being LOHAS can increase personal health and reduce their environmental impact on the world. Leading on from being LOHAS, the LOHASia Facebook group allows members of the public to share their advice, ideas and opinions on living lifestyles of health and sustainability.

Adam Horler, President of LOHAS Asia, says:

"We were looking for a way to get across the concept of LOHAS to everyday folk that highlighted how powerful individuals are in the fight for a more sustainable world; the Internet and video delivery is the fastest way to do this.”

R U LOHAS emphasizes the need for all citizens to cooperate with the efforts exerted to live a healthy lifestyle and control pollution, taking into consideration that this is the primary criterion that will contribute to the success of the sustainability endeavours and lessen the adverse consequences on the environment and nature.

Adam Horler adds, “It is time for every individual consumer to understand that WE are the most powerful people in the fight against environmental exploitation, not governments, banks or big corporations. It is through our everyday purchasing habits that we can change the world for the better."

This sort of consumer-driven campaigns will see the increase in green consumerism among Asians and the introduction of more green products into local markets. Ultimately, the phasing out of non-green products or services and the complete paradigm shift that removes the dependency of commodity based products in the market on course with the depletion of natural resources will spell the end of conventional demands and habits. In the coming 3-5 years, non-green products such as canned food, petroleum-based products, gas-guzzling vehicles, large electricity-consuming residential homes and even non-recyclable plastic will be phased out.


The LOHASians


The Green Generation will consist of LOHASians with the eagerness of creating an impact to their surroundings by adapting to change. A snapshot of the LOHAS consumer reveals a passionate, environmentally and socially responsible consumer segment and shows them to be early adopters who can be used as predictors of upcoming trends. They tend to be influential over friends and family, are more brand loyal than other consumers especially to companies whose values match their own, and most importantly, are willing to put their money behind their beliefs and values.

Just what are LOHAS consumers buying and where are they buying them? Among other goods and services LOHAS consumers are buying organic label products and products related to health, wellness and sustainable lifestyles. The price and availability of green options has grown tremendously with green products now widely available online, but in Asia the results show that demand continues to outstrip supply on the high street market. Will LOHAS be effective in driving the Green Generation forward towards a better sustainable lifestyle? Will this impact the economies of Asian countries in adapting to these changes?


Many thoughts on our minds as we race towards the Asia Green SME 2012 (Formerly MyGSE2011) scheduled to be in February 2012 to showcase Lifestyles of Health and Sustainability (LOHAS) as part of the theme for the Expo. For more information, kindly log on to our official website at www.asiagreensme.com. Parts of this article are written based on the input given by Liz Smailes, PR & Communications Director Asia Pacific LOHAS. This article is the second part of a planned 7-episode series that will highlight the various aspects of green initiatives in the region and some insights to Asia Green SME 2012 as we look to host the Largest Green SME Expo dedicated to SMEs in Asia.


By Harish J Hariraj

Consultant and founder of Asia Green SME, Harish pursued Mechanical Engineering from Universiti Tenaga Nasional in Malaysia and currently runs his own consultancy firm in Kuala Lumpur providing solutions to businesses in adapting green, clean, and cost effective solutions. Harish also coaches SMEs and large corporations with a group of experienced professionals and has a huge passion in green and sustainability.

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This is the second article of my dedicated green column in SME & Entrepreneurship Magazine, South East Asia's Best Selling Business Magazine, published and distributed regionally including Singapore, Malaysia, Thailand, Brunei and Indonesia.