Tuesday, May 27, 2008

ROI on green products

There is no global perspective but many business managers expect to pay a premium for green, especially if increased ROI can be shown. It often depends on the geographical location and culture: For instance, business managers in rapidly developing India place high importance on products from brands perceived as green. Not only do these Indian technology influencers (buyers and sellers) prefer eco-friendly brands but they anticipate paying a premium for such products. In India, nearly 60 percent of its business managers would definitely buy green if the ROI was proven, while almost the same amount expected to pay at least a 5 percent premium.

The Bottom Line

Greening technology brands is a delicate balancing act. In charting a green course, it is important to understand where a company's brand is internationally, what market a company wants to target, and how much of a premium that market expects to pay as a "green tax" for adoption.

Having a great green product offering that nobody knows about or believes in can end up creating waste rather than reducing it. Yet, having a proposition with no weight behind it, especially a brand that is expected to deliver green but does not, can compromise brands in the long run.

The greening of technology brands requires skillful mapping and foresight, but judging from the success of brands like HP and Dell, it is a road that can be successfully navigated by strategic thinking.

By:Anna Clark, Greener Computing.com

Anna Clark is president of EarthPeople, a consulting firm that helps companies of all sizes save money and bolster their brand through the leading-edge principle of sustainability.

No comments: