Buyers need more than just environmentally friendly products

Rudijanto, Contributor, Jakarta

Environmentally friendly home appliances may attract more customers in advanced countries due to a higher level of awareness and deeper concern for the environment there, but it is not necessarily the case for Indonesian consumers, who look more for energy-saving and health-promoting features.

Campaigns for environmentally friendly products launched by both non-governmental organizations (NGOs) as well as governments of some European countries have forced many producers of electronic home appliances to abandon the use of substances and components that have adverse effects on the environment.

A concrete example of some of the positive steps taken is the use of R134a as a refrigerant in both air-conditioners and refrigerators to replace the previously widely used R12 that has proved to be gradually damaging the ozone layer.

That is why most refrigerators sold today carry chlorofluorocarbon-free (CFC-free) labels to convince customers that the products are environmentally friendly. For a number of more educated and environmentally aware Indonesians the CFC-free feature is an added value.

PT Hartono Istana Teknologi, producer of Polytron electronic products, has even made greater strides by replacing the now commonly used R134a with hydrocarbon known as R600a to make its refrigerators and air-conditioners even more environmentally friendly.

The company's president director J. Arief Hartono said that his company preferred to use R600a because although R134a was already ozone friendly it could still increase the global warming potential (GWP).

"GWP affects the balance within the ecosystem due to the shrinking polar caps which in turn causes the ocean levels to rise," said Arief Hartono.

In line with the current global trend that favors environmentally friendly products, electronics manufacturers have no choice but to produce more earth-friendly products. Next to air-conditioners and refrigerators even washing machines and other products now use components that are environmentally friendly.

PT Electrolux Indonesia's marketing support manager Joddi Primantara said his company sold environmentally friendly washing machines that used a comparatively lesser amount of detergent and water.

"We have created a system in our machines that can recycle detergent during part of the wash cycle. Instead of discharging the water and detergent in the pre-wash phase, our machines recycle them for use in the next phase of the washing process, which is the main wash phase," said Joddi.

While top-loader washing machines consume up to 160 liters of water per wash, Joddi claimed that the front-loader Electrolux washing machines use only between 42 liters and 65 liters. Thanks to the combination of small amount of detergent and water, he said, his company had contributed to reducing waste and pollution harmful to the environment.

Although environmentally friendly products have more added value, surprisingly, Indonesian consumers put more value on other features such as price, while some look for features related to health.

"In the beginning, it was difficult to convince our consumers to shift to non-CFC refrigerators due to the price difference. They are certainly more expensive," said PT Sharp Yasonta Antarnusa's sales and marketing director Jino Sugiarto.

Jino added that when he explained that CFC refrigerators with R12 were more costly to repair because an overall replacement of components may be required, consumers started to respond positively toward non-CFC refrigerators.

Certainly, environmental awareness among the majority of Indonesians is still low. Continuous forest destruction and the recent refusal by some governors on the island of Kalimantan to adhere to the forestry minister's log cutting quota reflect this low awareness.

Today, as many Indonesians seem not to care too much about the destruction of forests in their own backyard; the gradual destruction of ozone layer or even global warming that shrinks the distant polar caps are certainly not an immediate concern.

Apparently any marketing drive here that emphasizes environmental issues does not grab Indonesian consumers' attention. Hence, electronics producers have to find other themes and capitalize on different features that can immediately capture their attention.

CFC-free labels have lost their marketing appeal partially due to the fact that almost all refrigerators and air-conditioners already incorporate the feature. A shrewd move by Sharp was to introduce its Plasmacluster technology that the company claims is able to break down mold spores.

By raising this health-related issue, Jino believes that Indonesian customers will respond more positively than to features related to preservation of the environment. He stresses that this Plasmacluster technology is not just another marketing gimmick, but a positive innovation by the company that has been recognized by several international bodies.

Jino explained that Sharp uses a device called the Plasmacluster Ion Generator that breaks down water molecules into positive and negative ions. which are released into the air.

"The released positive and negative ions are immediately surrounded by water molecules, forming plasmacluster ions. These plasmacluster ions are diffused throughout the entire room, wherever mold spores and odor-causing molecules are floating," said Jino.

He added that the plasmacluster ions collide with mold spores and odor-causing molecules and are transformed into hydroxyl (OH) groups. By transforming into OH groups, plasmacluster ions break the cell walls of harmful mold spores and reduce odor-causing molecules into harmless substances.

Sharp's focus on the health-related aspect of its products has received a positive response, especially in the high-end market. Jino said that the launching of plasmacluster products had boosted Sharp's refrigerator sales by 20 percent.

Sharp is currently the market leader in the local refrigerator market with a 24.9 percent market share. Similarly, other electronics companies such as South Korea's Samsung and LG are also incorporating features related to health in their products.

Samsung has aggressively advertised its bio-technology that it claims can reduce the growth of bacteria. The company claims its Bio-Vegetable Bins also prevent the loss of vitamin C from fruits and vegetables.

Besides the Bio-Vegetable Bin, the company also promises that the Bio-Chilled Compartments of its refrigerators can keep foodstuff fresh longer, while its Bio-Deodorizer is able to ensure that the food retains its original flavor and aroma inside the refrigerator.

LG has its own version of health-promoting features for its refrigerators, the Biosilver Liner and Bioshield Gasket. While Biosilver Liner is able to protect food from various bacteria, Bioshield Gasket prevents the growth of mold in the refrigerator. Essentially, the message is these features in LG's refrigerators promise fresh and healthy food.

Meanwhile, refrigerators produced by PT Electrolux Indonesia have a built-in deodorizer that not only eliminates odors but also kills bacteria.

"Generally the source of most odors is bacteria, and killing the bacteria automatically stops the odor as well," said Joddi Primantara, the company's marketing support manager.

Consumers' concern for their health has proven to be a prime feature in many products and subsequently successful marketing stories here. Not surprisingly, Indonesian consumers are also quick to respond positively to products that can save their hard- earned money. Energy saving features -- low consumption of electricity, that is -- also promise higher sales.

Rather than depending solely on environmentally friendly features, for the local market other features related to health and energy saving are more likely to produce better results -- for manufacturers and consumers alike.