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Vietnams emerging environmental disgrace / opportunities

Much has been written and said about environmental pollution of the past 2 years in Vietnam. Considering that in both 2009 and 2010 TNS Consumer Confidence Poll, environmental pollution was the number one concern of Vietnams average consumer. Environmental pollution 2009 vs 2010 How do you see environmental pollution in the next 12 months?

2010

22

27

36

2009

14

20

38

24

Source: TNS Consumer Confidence Poll 2009-2010

Far better Alittle better Same A little wors e Far worse DK

In 2010 over 60% of Vietnams urban population noted that environmental pollution would become much worse / a little worse in 2010, compared to 2009. Now for once you do not need to commission a survey to realize that this is true. Just stick your head out the window and breathe that beautifully petro scented flavour called air in HCMC or Hanoi, or have a look at our rivers and waterways and it is easy to see why environmental pollution has become a genuine cause for concern. Since the majority of businesses in Vietnam are either consumer driven or at least a business to business model, more and more companies appear to be going green, in an effort to help market their products and services to Vietnamese consumers and businesses alike. Having grown up in Canada, one of the more green countries in the world and a true pioneer, when it comes to environmental protectionism, I personally have very strong views on this issue. So before I begin to address the key message of this article What do marketers need to do and communicate to sell their green products and services, let me point out that Environmental protectionism is every person in Vietnams responsibility, not just companies who wish to truly help, or use green products and services as a sales mechanism. First and foremost, education of Vietnams businesses and general population is a must if Vietnam is going to tackle this issue in a true sense. Vietnam needs to make this a priority of its economic policy moving forward, to ensure, we do not ruin, one of the most beautiful countries on earth. The Government needs to impose severe penalties, such as fines and license withdrawals to big polluters and provide incentives, such as tax breaks and preferential trade incentives, for companies who invest in green technology, to begin to truly address this issue. In a survey TNS conducted at the end of 2008, it became incredibly obvious that the average population has a true lack of knowledge of what environmental pollution is all about. Almost 70% of those surveyed noted not littering as being the action they take to protect Vietnams environment, as well as being the most important action they could take to protect their own environment. In contrast, only 20% noted using more public transportation, walking, bicycling or using more environmentally friendly means of transportation and only 4% considered this to be the most important action they could take to help save the environment.

What are we doing to look after the environment? Current actions vs Perceived most important action
Not littering Use less energy (gas, electricity) Use less water Less use plastic bags Recycle/separate waste items for recycling Use energy saving bulbs/ solar power lights Walk or use more bicycle / electric bicycle Use more public transport
4 20 4 17 3
Source: TNS VietCycle 2008

69 45 51 13 45 5 39 7 34 13 26

Actions

Most important

Hence, before discussing marketing opportunities, an overall mass education campaign needs to be implemented before environmentally green products can take off in Vietnam. Globally, using green products is indeed becoming a trend and has been in the developed world. However, in the developing world environmental product use is indeed up, but not nearly as high as awareness is. This is very true for Vietnam, where 7 out of 10 consumers say they prefer environmentally friendly products and are now aware of Green Products, but whether they are willing to spend more money on such products is another story. For marketers, the first and foremost issue they face is educating their consumers on the real issues we are facing. Secondly, marketers should align themselves with reputable Green Groups and Associations to ensure that what is being communicated about product X and Service Y can actually be substantiated. In the context of green products and services, every little bit helps. Marketers need to make consumers aware of how the product and service actually helps the environment in both the short and long term sustainability of a clean Vietnam.

This can be accomplished in many ways. For instance, companies can highlight their actions in terms of Substituting harmful chemicals / product ingredients with healthier ones Can reduce their packaging and the waste materials from packaging Energy efficiency initiatives Green Credits Recycling programs Just as with any marketing initiative, those who are able to break communication down in to meaningful and easily understood consumer language combined with relevant connections to their audience will also be the ones who come out in front. Relevant connections and end benefits can be more emotive, such as ensuring a beautiful legacy for their children and the future of Vietnam, and/or can be made tangible by demonstrating how being green can also often mean saving/greater value in the longer term of lower healthcare costs, even if there is a small premium to pay. Other ways to market Green is by providing communication about what the company is doing to support environmental programs, such as waste management, alternative fuel exploration and many, many other

great causes. It can be as simple as having you and your staff spending a Saturday cleaning up the sides of roads or parks or rivers. As Vietnamese consumers are becoming more brand savvy and much more aspirational, Green products and services need to communicate their premiumness, not only as a product function, but as a global value system in terms of environmental sustainability . Having a selective and unique appeal, will certainly draw Vietnams ever increasing aspirational and demanding consumers towards environmentally friendly products.

I am equally concerned about Price and quality

Vietnamese Brand Perceptions

I prefer brands with a healthy / environmental focus Im willing to pay more for higher quality brands I like to use the brand which shows my success I prefer to buy well-know brands Vietnamese brands are as good as international brands I prefer local Vietnamese brands There are no real differences between the brands available in the market

73%

Source: TNS VietCycle 2008

Green initiatives must come from all of us and thus the best place to start is in your own office with your own staff. Initiate energy efficiency programs such as lights out at lunch, recycling paper and using recyclable products. The more company owners do within their own companies, the more the message is received and the faster Vietnam will catch up to the rest of the world. However, as noted before, this issue goes way beyond businesses. Consumers need to be more informed and need to demand better environmental products and services from manufacturers. The simplest message a consumer can give, is to switch to more Green products, but this requires information, which nowadays can very often be garnered from the internet. Marketers can thus use the internet to allow consumers to better understand what their environmental policies are and what they are doing to help our Mother Earth. Communicating the visual effects of Vietnams environmental key issues, such as littering, electric efficiency, etc, helps as it addresses obvious issues. However, marketers need to embrace the bigger issues as well, as these are the real global concerns, which will have much longer lasting impact on the world and Vietnam. Few people know this, but if Global warming is indeed a fact, Vietnam would be one of the very first countries negatively impacted, as both the Mekong and Red River Deltas are well below sea level and would be lost immediately. Makes you think doesnt it? Ultimately, in a country such as Vietnam, which is still developing and where consumers are still looking to have the latest and greatest mobile phone or motorcycle, while others are still looking to feed their families nutritious meals on a daily basis, Marketing Green, will not be easy for most, since most environmentally green products cost more. We should all reflect on the words of Vietnams first and most famous environmentalist, Ho Chi Minh, who said, for every tree cut down, you need to plant two in its place, which should act as a lesson for all of us. The Green movement has always been a grass roots initiative and it is thus the responsibility of each of us to start with baby steps today, as tomorrow may be too late. Ralf Matthaes, Managing Director, TNS Vietnam