Encouraging Brazil's emerging

middle class to buy sustainably

Brazil is exploring the power of behaviour change to
persuade its burgeoning middle class to consume more
responsibly

There is an economic phenomenon transforming emerging economies around the world
the rise of a new middle class of consumers. And the need for business to manage their
major impact on the existing global system of production and consumption.

Encouraging these new consumers to make sustainable buying choices is one of the
greatest challenges facing responsible companies today. As traditional approaches fail,
businesses in Brazil are now starting to explore the power of behaviour change techniques.

Over the last ten years, some 30 million Brazilians have joined the middle class. These new
consumers are swelling the numbers of a market which is already stretching Brazils natural
resources beyond their capacity. Nevertheless, it is impossible to deny to this segment of
the population the access to consumption that is already enjoyed by other Brazilians.
In Brazil, socio-economic classes C (household gross monthly income of above BRL2,040
(531)), D (income of above BRL1,020 (265)) and E (income of below BRL1,020 (265))
now account for 108 million people, or 54% of the population.

Ethical consumerism campaigns and traditional educational approaches are failing to make
headway in Brazil in changing the behaviour of this segment. Any strategy which tries to
stimulate responsible consumption by moralising and reasoning appears doomed to failure.
Some 70% of buying decisions are based not on rational thinking but are driven by factors
such as the need to belong and the need for recognition, status and sexual success,
according to research into neuromarketing(Portuguese).

Raising awareness about responsible consumption is not a particularly effective response
to the problem. Research carried out in Brazil and worldwide has shown that awareness of
environmental concerns has increased significantly. Today the vast majority of Brazilians
react positively to products labelled as environmentally friendly.

However, this increase has not been accompanied by a similar change in buying and post
consumption habits. According to Serasa Experian and Instituto Data Popular in Brazil, for
the C, D and E classes, price, durability and brand are still by far the most important factors
when making a buying decision. This holds true for consumers worldwide, despite any
number of educational campaigns.

What is needed is an approach rooted in behaviour economics and psychology that
changes behaviour before attitude and tangibly benefits both brand and consumer.
Consumers can be stimulated to aspire to products, services and lifestyles that benefit
them and meet their aspirations, but which are at the same time more sustainable.

Brazilian companies are already successfully influencing consumer behaviours and habits
that are closely associated with their products and services. Sustainable cosmetics
company Natura has introduced a new line of products, Natura Sou, which come in
squeezable pouches rather than in traditional hard plastic bottles. Naturas aim is to reduce
the carbon dioxide emissions associated with excess packaging. It has successfully
attracted consumers to the cause not by preaching to them, but by showing how the new
packaging lets them use every last drop of shampoo in the shower, minimizing waste by
changing consumer behavior.

Health care company Amil has launched a campaign against child obesity that is designed
to change eating habits by using a mixture of gamification tools to both children and their
parents.

Eight Sustainability Platforms recent Consumer Behavior Change Framework discusses
behaviour change strategy and tactics companies can use to show that products, services,
and behaviours that have a more positive impact on health, the environment and society
can be just as attractive and desirable as more traditional choices. Sugar-free fruit juice
company Sucos do Bem is helping consumers change their drinking habits by showing that
healthier drinks can be fun as a quick look at its website will show, healthy nutritional
habits are not only for the holier than thou.
At the same time, companies in Brazil are also using disruptive innovation to create new,
profitable and sustainable products, services and business models. Brazilians are
traditionally resistant to buying second hand goods, but online
marketplace bomnegocio.com has made it fun, desirable and practical to buy and sell used
items. Social innovation companies are also addressing some of Brazils most pressing
problems: start-up Vivenda helps people in low-income communities and favelas renovate
their homes, while Geekie is an online fremium platform that offers customized training to
millions of Brazilian students who would otherwise be unable to access complementary
education.
If it is to be successful, any behaviour change approach that aims to encourage the take-up
of a product or service will have to provide real, personal and tangible advantages for
todays new consumers. Appeals to self-sacrifice and self-denial will fall on deaf ears. The
millions of new consumers joining the market in Brazil and around the world are all too
used to going without. If a company is going to reach them and influence their buying
patterns and their behaviour, it will have to invest in understanding just what makes them
tick and then deliver them very real benefits.
Pablo Barros is the founder and director of Eight Sustainability Platformand co-author for
the Consumer Behavior Change Framework. Additional contributions from Harriet Kingaby
and Mark Beresford.