Lifestyles of Health and Sustainability
The LOHAS demographic defines a particular market segment related to sustainable living, "green" ecological initiatives, and generally composed of a relatively upscale and well-educated population segment. The main focus of this segment is the sustainable economy with strong concerns about human rights, fair trade, the environment, sustainable practices, spiritual and personal development and resource efficient products. As consumers, they want to integrate their values with the products and services they buy and use.
The US LOHAS market segment represents a sizable and rapidly growing group. Understanding the LOHAS Consumer, (The Natural Marketing Institute), reported 32.3% of adults, or 68 million consumers in 2003 worth $US76.5 billion. By 2006 the US market was estimated at $US300 billion.
"Cultural Creatives are the 'leading edge' thinkers and creators of a new culture in America, and they are the most influential opinion leaders for your products. They dominate the market for natural foods, alternative healthcare, and for products and services related to personal growth and spirituality."
Paul H Ray
According to Ray, when price and quality are equal, 76 percent of consumers would switch brands or retailers if a company were associated with a good cause.
The challenge for businesses is to:
Understand the evolving values that drive the consumer to purchase LOHAS goods and services.
Identify the consumer for LOHAS products and services and affiliate communication channels to reach them (eg www.Celsias.co.nz) and the appropriate and authentic messages that appeal.
Explore the opportunities to co-market with other LOHAS based businesses.
Develop and supply products and services that meet the complex demands of LOHAS consumers.
Listen to and interpret feedback in order to continuously develop the product range and styles to meet the evolving LOHAS needs.
LOHAS is a recognised market segment in the USA, Western Europe, especially Germany, and South East Asia. Progressive Asian countries, including Japan, Singapore and Taiwan are devoted to boosting LOHAS principles in their policies.