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   The LOHAS Consumer
   

The term Lifestyles of Health and Sustainability (LOHAS) refers to a recognized Western and European consumer segment that is steadily gaining steam in Asia. The literal translation of LOHAS into Chinese means “happy life”. LOHAS consumers, or “Lohasians” as they are often called, practice value-based lifestyles that promote personal well-being, social responsibility, natural living and environmental sustainability.

Sociologist Paul H. Ray and psychologist Sherry Ruth earlier derived the term “Cultural Creatives” to describe these consumers who form a marketplace worth over US $200 billion in the United States alone. According to Natural Marketing Institute, this number is expected to hit US $845 billion in by 2015.

Lohasians tend to be well-informed, hence discerning of advertising claims, reading labels well beyond the ingredient list. The concept of interconnectedness is deeply rooted in their beliefs, whether interconnectivity in economies, cultures, environments or political systems.

Even non-Lohasians are increasingly making LOHAS purchases for their health benefits and eventual financial savings. An online poll by The Economist found thathealth was “very important” to the personal happiness of over 75 percent of respondents, while another showed two-thirds of consumers are willing to pay more on an initial purchase if it will lower their electricity or water bills in the long run. This trend is also observed in natural healthcare. Executive director of the Collaboration for Healthcare Renewal Foundation, Stephen Bolles says, “In every study of cost-effectiveness that has been done … there has been overwhelming evidence that these alternatives save money.”

According to LOHAS.com, LOHAS goods and services relate to “health, the environment, social justice, personal development and sustainable living”, and include things like:

·         Organic and locally grown food;

·         Organic and natural personal care products;

·         Hybrid and electric cars;

·         Green and sustainable architecture;

·         Energy efficient electronics or appliances;

·         Socially responsible investing;

·         Natural household products (e.g. paper goods, cleaning products, etc.)

·         Complementary and alternative medicine, preventive medicine (e.g. naturopathy, Chinese medicine, etc.)

·         Fair trade products.

The LOHAS Journal says 68 percent of consumers are more likely to purchase from a company that is considerate of its environmental and societal impacts.

Reflective of consumers’ changing preferences, more mainstream companies are tapping into this flourishing industry via “responsible capitalism”, incorporating economic and environmentally sustainable standards into their goods and services. To attract the Lohasian’s attention, retailers should concentrate on issues aligned with Lohasian beliefs like fair trade, sustainability and ethical practices.

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