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The Consumer Society score of this Portfolio is 12%

Consumer Society

The Globalance Megatrend-Share shows you the average share of revenues of the portfolio that is achieved in one or more megatrends. For the calculation, the Megatrend-Shares of the individual investments are capital-weighted and added up.

12%

Consumer Society Exposure

4th

Consumer Society is the 4th most represented megatrend in this portofolio

84 (of 507)

of the holdings are invested in this megatrend

What is it about

The term consumer society refers to societies in which the satisfaction of needs is possible through consumption in return for appropriate payment. This term is commonly used critically, as it describes various aspects of modern lifestyles in industrialized countries (as well as the terms affluent society, affluent society or disposable society). We recognize the needs of consumption and pleasure as important megatrends with numerous positive and negative interactions between economy, society and environment. Through our analyses we separate harmful forms of consumption from positive ones.

Consumer Society Exposure of your Assets

12%

Portfolio Megatrend Exposure

0%100%

Data source: Globalance

 
Asset Name
Consumer Society Exposure
Global Megatrends Exposure
% of portfolio
Ulta Beauty Inc100%100%0%
Tapestry, Inc.100%100%0%
Take-Two Interactive Software, Inc.100%100%0%
Ralph Lauren Corporation Class A100%100%0%
NIKE, Inc. Class B100%100%1%

Why does it matter

Opportunities

  • Sustainable consumer behaviour is an important driver for meeting global challenges such as resource scarcity or climate change. Products, services or business models that decouple the satisfaction of human needs from resource consumption are in particularly high demand. In OECD countries, ethical consumption and in emerging countries the circular economy are growth drivers.

  • Business has to facilitate more sustainable levels and patterns of consumption, through current business processes such as innovation, marketing and communications, and by working in partnership with consumers, governments and stakeholders to define and achieve more sustainable lifestyles.

  • There is a significant opportunity for business to help consumers choose and use their goods and services sustainably. In order to do so, business must create sustainable value for consumers by supplying products and services that meet their functional and emotional needs – now and for future generations – while respecting environmental limits and common values.

  • More and more consumers are concerned about the economic, social and environmental issues and willing to act on those concerns.

Risks

  • Consumption-critical considerations are social (keywords alienation, consumer capitalism) or ecological (keywords waste of resources, environmental pollution and lack of sustainability).

  • Planned obsolescence is a strategy in which the obsolescence of a product is planned and conceptualized by the manufacturer. It is to be evaluated negatively.

  • Consumer willingness often does not translate into sustainable consumer behavior because of a variety of factors – such as availability, affordability, convenience, product performance, conflicting priorities, skepticism and force of habit.

Relevance for Investors

Investors are interested to identify those sectors and businesses which can respond to the Opportuni-ties. Attractive strategies are: Choice influencing: the use of marketing and awareness-raising campaigns to enable and encourage consumers to choose and use products more efficiently and sustainably. Choice editing: the removal of “unsustainable” products and services from the marketplace in partner-ship with other actors in society. Innovation: business processes for the development of new and improved products, services and busi-ness are shifting to incorporate provisions for maximizing societal value and minimizing environmental cost.

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