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5 Rules for the LOHAS Market

March 2008 By Ethan Boldt
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The acronym LOHAS (Lifestyles of Health and Sustainability) may not roll off the tongue, but it sure represents plenty of American influence. Conservatively estimated by the LOHAS Web site, the LOHAS market involves 41 million people, or 19 percent of U.S. adults, and $209 billion for goods and services focused on health, the environment, social justice, personal development and sustainable living. (Other estimates increase the percentage to a full third of Americans with $500 billion to spend in 2008.)

Also referred to as “Cultural Creatives”—a term coined by Yale sociologist and author Dr. Paul Ray in the book “The Cultural Creatives: How 50 Million People Are Changing the World” (co-authored by Sherry Anderson)—LOHAS consumers are unmistakably creating a new culture, one in which their values are often directly reflected in their purchasing. Hence, the terms “green,” LOHAS and “conscious consumers” equally refer to the Cultural Creative.

While their presence is already significant enough to get any marketer’s attention, the numbers of Americans living the LOHAS way will only increase. “Ray insists, and I fully agree, that this percentage can only increase as the folly of unrestrained consumerism and ostentatious display becomes ever more apparent in a resource-constrained world battered by global warming,” predicts Mal Warwick, founder and chairman of Mal Warwick Associates, a Berkeley, Calif.- and Washington, D.C.–based fundraising agency specializing in direct marketing.

“In short, I think you’ll find that this group is deeply committed to environmental preservation, understands the linkages between environmental damage and perils to human health, and is highly resistant to traditional marketing and advertising appeals,” explains Warwick.

With that in mind, don’t forget these five rules for the LOHAS market.

1. Get Better Response by Being Responsible
Showcasing how LOHAS values extend far beyond LOHAS’ community, look at this statistic from full-service, global PR firm Edelman: 85 percent of consumers worldwide will change the brands they buy or their consumption habits to “make tomorrow a better place.” In other words, the “responsible” message practically works across all segments today.

“LOHAS is leading edge, and its marketing concept is starting to take off because, from my perspective, it’s good business. Even mainstream people who wouldn’t necessarily be considered LOHAS consumers are increasingly interested in who they do business with, authenticity and patronizing businesses that aren’t doing bad things in the world,” says Perry Goldschein, founder and managing director of SRB Marketing in Denville, N.J., and author of “Conscious Clicks: A Guide to eMarketing for People, Planet & Profit.”
 

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Most Recent Comments:
Sarah Clachar - Posted on March 19, 2008
Glad to see this attention to LOHAS! Organic and green have outpaced conventionals in every category - even clothing and cleaning supplies - when it comes to growth. Organic foods have experienced steady double digit growth over the last few years. And there is no sign that this will dissipate.

Clearly there are some lessons here that are transferable to many other markets as consumers in general become more skeptical and better informed. Solid research, transparency and credibility are crucial! Not to mention the fact that LOHAS puts the fact that you are marketing BENEFITS (a lifestyle) and not the specific features into stark relief.

Interesting to note, many market analysts - the Hartman Group and Natural Marketing Institute - do not think the LOHAS purchasing drive will be dampened much by a recession. They've found that while price is a factor, the 19% NMI terms "devoteds" place values over price since it is linked to their core beliefs. Hartman documented this in 2001 when the economy hit a slump. Other encouraging news - NMI finds that, specifically in reference to organic products, the number of "dabblers" - less regular organic shoppers - is shrinking while the "devoteds" are growing.

And on a final note, many business analysts note that green businesses may have an advantage simply because they run more efficiently, may have higher employee satisfaction and dedication in addition to a strong brand loyalty in their marketplace.

As a copywriter and trade magazine writer I've seen these principles yield strong results.

Click here to view archived comments...
Archived Comments:
Sarah Clachar - Posted on March 19, 2008
Glad to see this attention to LOHAS! Organic and green have outpaced conventionals in every category - even clothing and cleaning supplies - when it comes to growth. Organic foods have experienced steady double digit growth over the last few years. And there is no sign that this will dissipate.

Clearly there are some lessons here that are transferable to many other markets as consumers in general become more skeptical and better informed. Solid research, transparency and credibility are crucial! Not to mention the fact that LOHAS puts the fact that you are marketing BENEFITS (a lifestyle) and not the specific features into stark relief.

Interesting to note, many market analysts - the Hartman Group and Natural Marketing Institute - do not think the LOHAS purchasing drive will be dampened much by a recession. They've found that while price is a factor, the 19% NMI terms "devoteds" place values over price since it is linked to their core beliefs. Hartman documented this in 2001 when the economy hit a slump. Other encouraging news - NMI finds that, specifically in reference to organic products, the number of "dabblers" - less regular organic shoppers - is shrinking while the "devoteds" are growing.

And on a final note, many business analysts note that green businesses may have an advantage simply because they run more efficiently, may have higher employee satisfaction and dedication in addition to a strong brand loyalty in their marketplace.

As a copywriter and trade magazine writer I've seen these principles yield strong results.