How the Impact of Environmentally Sustainable Practices in the Beauty Industry Influences Indonesian Generation Z Purchasing Intention?

Alifa Jasmine Aulia; Ilham Fauzan Putra

Alifa Jasmine Aulia
Ilham Fauzan Putra

Abstract

The beauty industry in Indonesia is growing rapidly with a projected annual growth rate of 9% by 2026, driven largely by the increasing demand for beauty products. This spending shift happened especially because of the rise of Generation Z as a significant consumer group where it is changing positively towards environmentally sustainable movement. From this knowledge, it raises questions; To what extent do beauty companies integrate environmentally sustainable practices into their current operational activities and overall business strategies from the consumer perspectives? How do environmentally sustainable practices influence the purchasing intentions of Indonesian Generation Z consumers in the beauty industry?; How Indonesian beauty companies can leverage environmentally sustainable practices among Indonesian Generation Z consumers?. This bachelor dissertation aims to act as a guide to help leverage beauty companies among Indonesian Generation Z consumers. This research will help answer the following through quantitative data research based on a primary and secondary data collection. The findings obtained from this study, shows that Indonesian Generation Z values sustainability as their purchasing intentions are significantly affected by companies eco-friendly practices. This study highlights four main examples of ESPs such as eco-friendly packaging, refillable packaging, product ingredient transparency, and overall sustainable business practices, which positively impact the purchasing intention of Indonesian Gen Z. Environmental factors related to the purchasing intention are crucial in the companies future organization plan and business objectives in determining which practical solutions to pursue. Diversity of demographic as in the geographical location and specific age group of only Generation Z are the limitations of this research, followed by the only utilization of quantitative methods. In some ways these limitations could restrict the collection of consumers perspective.

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