01 June 2010 16:15 [Source: ICIS news]
LONDON (ICIS news)--‘Green’ trends are becoming increasingly relevant to the chemicals sector and are now seen as a driver for innovation and an important way to differentiate companies from their competitors, a consultant said on Tuesday.
More than half of the respondents to a new survey from global strategy consultancy Simon-Kucher & Partners observed that sustainability and energy efficiency was becoming more critical to chemical businesses.
"In the past, the discussion surrounding green products and solutions concentrated primarily on technical innovations,” said Andrea Maessen, partner at Simon-Kucher. “Today, sustainability and energy efficiency pose an even greater challenge to marketing."
According to nearly three quarters of the respondents, the pressure to become more innovative would grow because of the importance of ‘green’ products and solutions.
The survey showed, however, that the respondents felt environmental issues had little relevance to pricing policy; less than half did not believe that a price premium, a reduction in price pressure and the implementation of higher prices could be achieved with a ‘green’ policy.
The power of an effective pricing policy was being strongly underestimated and opportunities were being missed, said Maessen.
"The companies have to introduce green products and solutions that offer a higher value with correspondingly higher prices in the market,” she said. “Otherwise they not only destroy their own margins, but they also miss out on the chance to position themselves clearly and utilise margin opportunities.
"Those who don't use the green trend actively in their pricing policy are giving away significant profit potential in the medium and long term," added Maessen.
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