IBM study identifies global consumer trends for the holidays
In its latest study titled ‘’, IBM gained insights from over 12,500 consumers in Brazil, Canada, Germany, India, Mexico, Spain, the United Kingdom and the United States. The study identified shifts in consumer outlooks as well as their shopping, travel and holiday plans as a result of COVID-19.
"The research shows more consumers have started their holiday shopping earlier than in prior years, and many plan to shop online instead of in-store given rising cases of COVID-19. While last year 60% of shopping was done in-store and almost 30% online, this year those numbers may be nearly reversed. Businesses should be prepared to provide a personalized digital-first platform to engage customers, and use technologies such as Cloud and Artificial Intelligence to help them handle fluctuations in demand, manage their supply chains in near real time, and create a better experience to serve holiday shoppers' needs,” commented Jesus Mantas, senior managing partner, IBM Services.
Following its global research, IBM’s latest research found that 54% of global consumers reported that they were willing to change their holiday purchasing habits in order to help to reduce the environmental impact.
Focusing on individual countries around the world, of those surveyed from India, 74% said that they would change their habits, the same figure was reported in Mexico and 66% in Brazil.
While COVID-19 has brought disruption for many consumers, IBM discovered that people are looking for more than simply ‘a good deal’, 44% reported that sustainability will be an influencing factor when shopping or choosing a brand.
Elsewhere in the report, the company forecasts a 1.8 per cent increase in November-December retail sales compared to 2019. With further research suggesting that 2020 will take a digital-first approach to shopping during the holidays, with over 60% of global consumers surveyed indicating that they planned to buy online for shipping to home as well as other locations, or buy online to pick-up in store or curbside. In addition the report further highlights that while 62% of consumers shopped in stores in 2019, only 28% planned to do so this year.
When it comes to the type of gifts being given in 2020, it was also identified that many were choosing products ovr experiences, with digital streaming entertainment seeing a 39% increase compared to last year, furniture seeing 33%, electronic goods 13% and toys and games 9 per cent.
With consumer concerns relating to COVID-19 remaining high, some of the top concerns include: 72% of US consumers concerned about a second wave, and 74% believe that the pandemic has made them more concerned about the health and safety of their family.
As a result further reports made by consumers identified that many people have changed their typical travel plans and time off.
- More than half who usually travel during the holidays plan to travel less, while 22% are undecided
- 67% of those that will travel have indicated that they will use a personal car or rental car as their primary transportation method
- Employees surveyed reported that they had taken slightly more holiday in 2020 compared to 2019, wit COVID-19 being a major reason for the increase
- Globally one third of employees reported that they are facing constraints that are limiting their ability to take the rest of their remaining paid time off
Charting the rise of the chief sustainability officer
There has been a dramatic increase in the hiring of the chief sustainability officer (CSO) role among Fortune 500 companies, with demand for CSOs growing 228% in corporate America over the last decade, according to the latest report from CSO recruitment firm the Weinreb Group.
There were more first-time CSOs recruited by Fortune 500 companies in 2020 than the previous three years combined, with numbers of CSOs in corporate America soaring from just 29 in 2011 to 95 today, demonstrating the importance corporations are placing not just on reducing their environmental impacts, but also in supporting issues of social justice.
Businesses are increasingly under pressure to assume more responsible practices with customers, regulators and investors demanding increased transparency of business ESG performance.
And the past year in particular has been seen great upheaval, with increased new attention brought to “social justice, climate change, and an ever-widening political divide”, according to Ellen Weinreb, founder and CEO of the Weinreb Group, which has tracked the rising role of CSOs over the past decade.
CSO role is expanding and shifting
But it’s not just the number of CSOs that have changed, sustainability teams are getting bigger, with the average team size increasing from five professionals in 2011 to 15 today, according to the report.
This is in part due to the fact that the CSO role has expanded beyond simply ‘sustainability’ to incorporate social justice too. Sustainability isn’t exclusively about the environment anymore. The role has also come to incorporate social justice, especially with the rapid growth of, and increased attention on, environmental, social, and governance, or ESG.
And many roles recently have been renamed as such with Head of ESG or ESG Officer becoming increasingly prominent.
Women make up over half of CSO roles
What's also changed over the last decade is the percentage of women holding the title of Chief Sustainability Officer.
A decade ago, in 2011, the majority of CSO roles were held by men (72%), with just 10 of the 29 then CSO roles held by women. A decade on, in 2021, the percentage of women in CSO roles has almost doubled, now accounting for more than half (54%) of CSO positions.
However, according to the report ‘The Chief Sustainability Officer 10 Years Later’, despite the movement toward gender balance within the role and its expanded focus on social justice, in particular, in 2021 the CSO position remains overwhelmingly ‘white’.
Probably not surprising considering there are just three black CEOs at Fortune 500 firms.
How the chief sustainability officer role has grown
The first-ever named chief sustainability officer in a US publicly traded company was Linda Fisher for Dupont, who joined the chemical giant in 2004 as CSO, just at the time when innovative companies were looking at sustainability as a driver for business growth. Joining from the Environmental Protection Agency where she spent 13 years, Fisher was a corporate sustainability trailblazer, spending more than a decade as CSO here, and leading DuPont’s efforts to establish its first set of market-facing sustainability goals.
By 2006, a slew of firms had joined the CSO movement, including Mastercard, Nissan and Microsoft; and Kellogg’s became the first firm to replace a CSO with Dianne Holdorf taking over from Celeste Clarke. And by 2011, a decade ago, Coca-Cola, Verizon, AT&T and P&G had appointed their first CSOs.
In fact, it was in 2011 when Virginie Helias invented her idea of the perfect CSO job – to make sustainable consumption not only possible, but ‘irresistible’ – and pitched it P&G’s then CEO. A decade later, in 2021, and Helias is still in the job she first created.
The majority of CSOs have been internal hires, such as Peter Graf of SAP, who joined the software giant in 1996, and served as EVP for Marketing before being named CSO in 2009. The same is true at UPS, whose first-ever CSO, Scott Wicker, started at the package delivery giant 34 years before being named CSO in 2011. Increasingly, however, external hires are being made with organisations increasingly searching for more high-profile leading voices in the ESG forum.
In February 2021, JP Morgan hired former British high-profile Labour politician Chuka Umunna while just last month hotel chain Accor hired high-profile French politician Brune Poirson, who has previously championed the anti-waste law within the French government and was secretary of state for the environmental transition for three years.