The power of centennials and their environmental awareness: Willingness to pay a premium price on the internet for sustainable fashion products

Abstract

In developed countries, sustainably manufactured textile products are typically sold at higher prices compared to industrialized textiles. Conversely, in developing countries, the situation is reversed: sustainable and artisanal products are often marketed at lower prices than their industrialized counterparts. This study introduces two significant academic contributions. First, it investigates the factors that contribute to the undervaluation of artisanal and sustainable products by consumers in developing countries, leading to their relatively low market prices. Second, it examines the willingness of the centennial generation in developing countries to pay a premium for sustainable fashion products in online purchases, compared to industrialized textiles. The analysis, based on 318 surveys processed using PLS-SEM, reveals that the values held by this generation—characterized by heightened awareness of environmental and social issues—correlate with a greater willingness to pay higher prices for textiles made from sustainable agro-industrial fibers. These findings underscore the pivotal role of centennials in shaping market trends by fostering increased environmental awareness in the fashion industry, thereby highlighting the importance of aligning product offerings with the ethical and environmental priorities of this influential consumer cohort.