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Commerce Lohas:The Rise of Ethical Consumerism ABSTRACT Research Paper Volume : 4 | Issue : 7 | July 2015 • ISSN No 2277 - 8179 Commerce KEYWORDS : Lohas, Definition, New con- Lohas:the Rise of Ethical Consumerism sumers, Ethics, Segments and consumer transition. Assistant Professor of Commerce, PG & Research Dept. Of Commerce, Chikkanna THIYAGARAJ .V. Government College, Tiruppur ,India. ABSTRACT Lifestyles of Health and Sustainability (LOHAS) are defined as a demographic defining a particular market seg- ment related to sustainable living, "green" ecological initiatives, and generally composed of a relatively upscale and well-educated population segment.”This new era of ethical consumerism only shows signs of accelerating and penetrating further into con- sumer consciousness. Perhaps the LOHAS model represents the new mode of activism for the 21st century—here’s to sustainability and future generations.Researchers have reported a range of sizes of the LOHAS market segment.The five LOHAS segments are,Lohas,Naturalites,Drifte rs,Conventionals and Unconcerned. INTRODUCTION PRODUCTS AND SERVICES Simple living encompasses a number of different voluntary prac- The marketplace includes goods and services such as tices to simplify one’s lifestyle. These may include reducing one’s possessions, generally referred to as Minimalism, or increasing Green and sustainable building self-sufficiency, for example. Simple living may be characterized Socially responsible investing by individuals being satisfied with what they have rather than Natural household products (paper goods and cleaning prod- want (Linda Breen Pierce 2000). Although asceticism generally ucts) promotes living simply and refraining from luxury and indul- Complementary, alternative and preventive medicine (Natur- gence, not all proponents of simple living are ascetics (Griffiths, opathy, Chinese medicine, etc.) et al., 2010) Simple living is distinct from those living in forced Fair trade products poverty, as it is a voluntary lifestyle choice. Literature in the Mind/Body/Soul, Holistic Health, and New Age genres Adherents may choose simple living for a variety of personal Organic and locally grown food reasons, such as spirituality, health, increase in quality time for Organic and natural personal care products family and friends, work–life balance, personal taste, frugality, Hybrid and electric cars as well as city bicycles or reducing personal ecological footprint and stress. Simple liv- Sustainable or Ecotourism and ing can also be a reaction to materialism and conspicuous con- Energy efficient electronics/appliances. sumption. Some cite socio-political goals aligned with the anti- consumerist or anti-war movements, including conservation, SCOPE regrowth, social justice, ethnic diversity, tax resistance, and sus- LOHAS is a recognized market segment in the USA, Western tainable development. Europe and Asian countries including Japan, Singapore and Tai- wan. DEFINITION: Lifestyles of Health and Sustainability (LOHAS) The Japanese government has a campaign called “Cool Biz”, it “It is defined as a demographic defining a particular market encourages offices to allow their workers to remove the tie and segment related to sustainable living, “green” ecological initia- adopt light-colored business suits. This made a great contribu- tives, and generally composed of a relatively upscale and well- tion to the environment as offices adjusted their thermostats up educated population segment.” to 28 degree Celsius, subject to the government’s instruction. NEW LOHAS CONSUMERS ENVIRONMENTALISM For new comers to the LOHAS space, “LOHAS” is an umbrella Simple living may be undertaken by environmentalists. For acronym that stands for Lifestyles of Health and Sustainability. example, Green parties often advocate simple living as a con- It refers to a wide range of industries, corporate activities and sequence of their “four pillars” or the “Ten Key Values” of the products/services that are designed to be environmentally con- Green Party of the United States. This includes, in policy terms, scious, sustainable, socially responsible, and/or healthier—both their rejection of genetic modification and nuclear power and for people and the planet. The LOHAS consumer, in particular, other technologies they consider to be hazardous. The Greens’ is the leading-edge portion of the population that is attracted by support for simplicity is based on the reduction in natural re- their belief systems and values and who make their purchase de- source usage and environmental impact. This concept is ex- cisions with these criteria in mind. LOHAS consumers are also pressed in Ernest Callenbach’s “green triangle” of ecology, fru- used as predictors of upcoming trends, as they are early adop- gality and health. ters of many attitudinal and behavioral dynamics. ENVIRONMENT AND ECONOMICS ETHICAL CONSUMERISM A new economics movement has been building since the UN The unbridled momentum of the LOHAS market is astonishing. conference on the environment in 1972, and the publication that This new era of ethical consumerism only shows signs of acceler- year of Only One Earth, The Limits to Growth, and Blueprint For ating and penetrating further into consumer consciousness. Per- Survival, followed in 1973 by Small Is Beautiful: Economics As If haps the LOHAS model represents the new mode of activism for People Mattered. the 21st century—here’s to sustainability and future generations. As some existing LOHAS principles, products and services main- Recently, David Wann has introduced the idea of “simple pros- stream, other new ones will begin to penetrate and displace the perity” as it applies to a sustainable lifestyle. From his point of old—in essence creating a continuous lifecycle of innovation view, and as a point of departure for what he calls real sustain- and mainstreaming. ability, “it is important to ask ourselves three fundamental ques- tions: what is the point of all our commuting and consuming? 702 IJSR - INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCH Research Paper Volume : 4 | Issue : 7 | July 2015 • ISSN No 2277 - 8179 What is the economy for? And, finally, why do we seem to be HOW LOHAS IS CHANGING BUSINESS IN ASIA unhappier now than when we began our initial pursuit for rich Spending over $300+ billion dollars annually, the demographic abundance?” called LOHAS continues to change the way marketers concep- tualize the 4 P’s of marketing. LOHAS is Lifestyles of health and Researchers have reported a range of sizes of the LOHAS market sustainability. The consumer groups identifying themselves with segment. For example, World watch Institute reported that the LOHAS are a megatrend not to be overlooked or taken for grant- LOHAS market segment in the year 2006 was estimated at $300 ed. billion, approximately 30% of the U.S. consumer market (Ever- age, Laura, 2002) and, a study by the Natural Marketing Institute Consumers have traditionally expected governments to take the showed that in 2007, 41 million or 13% of the Americans were lead in protecting the environment, but now they are looking included within the LOHAS demographic. In Japan roughly 17 more to the corporate world to take action, rather than indi- million adults or 12% of the population are LOHAS consumers. viduals. Increasingly, Asians want economic growth but believe it should be achieved through greener industry. LOHAS stands for Lifestyles of Health and Sustainability, and describes an integrated, rapidly growing market for goods and Market research conducted in 2010 revealed an untapped mul- services that appeal to consumers whose sense of environmental ti-billion dollar demand from households with significant pur- and social responsibility influences their purchase decisions. The chasing power that relates to exactly this. THE LOHAS Asia and Natural Marketing Institute’s (short: NMI) estimates the US LO- NMI research on China, for example questioned 1,000 consum- HAS consumer market of products and services to be USD 209 ers across the five cities of Beijing, Chengdu, Dalian, Guang- billion – sold across all consumer segments.(Todd, Kaiser,2008). zhou and Shanghai. Results showed that 88% agreed that it is important for companies to be mindful of their impact on soci- The five LOHAS segments as defined by NMI include: ety. With China having overtaken Japan as the world’s second- biggest economy, the LOHAS consumer demand is on the rise LOHAS: Active environmental stewards dedicated to personal month by month and there is urgency for the market to respond. and planetary health. These are the heaviest purchasers of green and socially responsible products and the early adopters who in- CONCLUSION fluence others heavily. Hence, in this context, simple living is the opposite of our mod- ern quest for affluence and, as a result, it becomes less preoccu- Naturalites: Motivated primarily by personal health considera- pied with quantity and more concerned about the preservation tions. They tend to purchase more LOHAS consumable products of cities, traditions and nature. The White House Peace Vigil, vs. durable items. started by simple living adherent Thomas in 1981. Drifters: While their intentions may be good, DRIFTERS follow systematic empowerment of people (as opposed to making trends when it is easy and affordable. They are currently quite and keeping them dependent), as the basis for people-cen- engaged in green purchasing behaviours. tered development systematic conservation of resources and the environment, as Conventionals: Pragmatists who embrace LOHAS behaviour the basis for
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