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"LOHAS"

What every green business needs to know about their market.

By Leigh Marlow

Put your hand up if you know what LOHAS means, and how it applies to your business.

LOHAS is an acronym for 'Lifestyles Of Health And Sustainability'
- a recognised and rapidly growing market segment in North America, Western Europe, Japan and Australia. LOHAS is used to describe a type of consumer who cares deeply about the environment, health, sustainability, and social justice. Sound familiar?

Also known as 'Lohasians', 'cultural creatives', 'conscious consumers' and 'solution seekers', LOHAS also represents the marketplace for the goods and services sought by these consumers.

A study in 2004 estimated that consumers with strong LOHAS values accounted for 27% of the US adult population (around 55 million people). An expanding market, its yearly value in the US alone is reckoned to be worth US$280 billion. Worldwide market value - US$540 billion.

So what does it mean for Australia?
LOHAS is still gaining currency in Australia. However, a 2007 report by Mobium Group titled 'Living LOHAS' has shed some welcome light on the Australian marketplace.

Australian consumers currently spend $12 billion dollars on goods and services in the LOHAS market segment. While the overall growth rate of 20% is expected to continue. Current trends project the market reaching $21 billion dollars by 2010.

With nearly 4 million Australians   (26% of the adult population) LOHAS aligned, this is no niche market. LOHAS is a bona fide mainstream marketing segment.

Accordingly, there are six key market elements:
     1. Food & Nutrition - eg. organic and natural food, vitamin suppliments
     2. Mind and Body - eg. yoga, meditation, personal development
     3. Home Life - eg. natural cleaning products, efficient appliances
     4. Buildings & Energy - eg. water tabks, solar hot water, 'green' energy
     5. Transport & Leisure - eg. low impact commuting, eco-tourism
     6. Work & Money - eg. socially responsible investing, recycled paper

The 'Living LOHAS' report divides 'Lohasians' into four main segments. 8% of the population are LOHAS 'Leaders', who are highly committed and active participants in fully integrated healthier more sustainable lives. Traditionally who many green minded businesses have catered to.

However, it's the LOHAS 'Learners' who at 46%, represent the most significant opportunities for the environmentally aware business. This group is open to Lohasian values - for the most part it appears too difficult.

And how do I reach these Lohasians?
Good question. One thing studies have found is that purchasers are not governed solely by price. Conscious consumers will consider more expensive products that fit in with their values.

Furthermore, according to the report, 80% of Australians find 'environmental issues complex'. With this in mind, the effective communication of your business values and philosophy is crucial.

From a marketing perspective, the fundamentals still apply. Study your market, and determine exactly what they want. Then give it to them. And make sure your marketing and advertising material speaks directly to them.

Significantly for green business marketers and managers, nearly 60% of Australians could not think of a 'brand or organization with a strong reputation for operating in an environmentally friendly, sustainable or ethical manner'. Clearly, there are significant opportunities for companies to capture consumer awareness.

And finally (and excitingly!) keep improving your sustainability and green practices. For green business, the bar will continue rise - potentially leading to a more eco-friendly and sustainable economy.

Leigh Marlow is a copywriter with Pure Green Copywriting - professional writing for the environmentally aware business. Leigh can be contacted on (03) 9486 0923, or via email leigh.marlow@puregreencopy.com.au

Sources: 1). NMI - Understanding the LOCAS Consumer 2). LOHAS Journal Online 3). LOHAS Journal Factbook Edition V5, I 1, 4). Mobium Group 'Living LOHAS' Report 2007

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