Livin’ la Vida LOHAS
Sustainability is cool among high-end Chinese consumers.
According to Wikipedia, LOHAS consumers are those who are passionate about the environment, sustainability, social issues, and health. Half plan to save the world, half marketing panacea, it encompasses everything from shopping at organic groceries to practicing Pilates and owning an electric hybrid car. In Europe and North America, LOHAS is all the rage; according to some reports, one in four North Americans and one in three Europeans are “Lohasians”, although this is undoubtedly an exaggeration.
LOHAS consumers typically make up the majority of those who buy:
* Organic and natural food
* Fair trade products
* Natural and preventive medicine
* Organic and natural personal care products
* Energy efficient electronics/appliances
* Socially responsible investments
* Natural household products
* Green, energy-efficient buildings
* Fitness equipment
* Memberships in health clubs and spas
* Ecotourism and adventure tourism
According to analysts, the fastest-growing LOHAS markets are in Taiwan and Japan, but the effects of this eco-trend are being felt across the globe. LOHAS is not just some treehugger’s fantasy; with the global LOHAS market currently worth an estimated $540 billion, this is an extremely lucrative retail sector, and companies from Carrefour and Wal-Mart to Japan’s Aeon and Lawsong are falling over themselves to jump on the LOHAS bandwagon.
It’s not clear how far LOHAS has penetrated Chinese society. Looking around the streets of Beijing, the answer in the most part would have to be not much. However, dig a little deeper, and there are signs that lifestyles of health and sustainability are starting to be lead in the capital, albeit by those on above-average incomes. In Chinese, LOHAS roughly translates to le huo zu, or “happy living set”, and there are certainly increasing numbers of Beijingers who are starting to treat their bodies, if not the environment, as temples to be kept contented.
Sales of natural health products continue to boom in China, and LOHAS shops have opened in Beijing and Shanghai. With increasing incomes and the upcoming Olympics as major drivers, the fitness craze has also caught on in China, but most of the investment has so far focused on Beijing, Shanghai, Shenzhen and Guangzhou. CSI-Bally, who run a chain of Chinese gyms, has calculated that on average Beijingers now spend more than US $100 a year on fitness. “There are Chinese people who really want to get fit, because they have more consumer spending power, more time, more leisure. Fitness is becoming more important to Chinese people,” said a company representative recently.
Most fitness clubs competing in China are targeting the same demographic grouping: young professionals, particularly women. “We regard those with a good education as our main customers,” commented Kang Tiancheng of the Chain of International Shaping Association Clubs recently, a fitness chain that runs shaping classes but also offers body evaluation, nutrition consultation, beauty salon and image building. “They are aware of the importance of health and fitness, and also earn good salaries. A large portion of our customers are white collar workers.”
In August Trends Media Group, China’s premier glossy magazine houses, launched a coordinated marketing campaign to switch its Chinese readers on to LOHAS. The group website offered some tips from recent spreads in the magazines. Cosmo Bride prescribed “home spas” and yoga to soothe the stresses of wedding preparations. Food & Wine recommended brunch, high tea and tapas over the typical three meals a day. Autostyle previewed the BMW Hydrogen 7. Harper’s Bazaar proposed a raggedy white-on-white look it tagged “Life Detox”: LV jacket, Valentino dress, Chanel skirt. Not exactly major lifestyle adjustments, but with green in and consumption out, Trends is only keeping pace with with global fashion trends.
And fashion is what LOHAS is currently all about in China. A substantial percentage Chinese people still go to a gym because it’s trendy, not out of any fervent desire to lead a healthy lifestyle. Chinese society is still at the stage where making money is the primary objective - health, wellness and the environment come second. That doesn’t mean that the LOHAS market isn’t set for explosive growth of course, but it will be at least another generation before sustainability becomes a major consideration of the average Chinese consumer.
Image source: CRI English and Eurobiz