Division (b) Market penetration, visibility and consumer awareness

There are four parameters for measuring the visibility of the Eco-label:

• companies: the number of companies awarded the Eco-label

• products: the number of products for which these companies have the Eco-label

• articles: the number of articles of these products marketed bearing the Eco-label

• values: the ex-factory sales value of these articles

Currently (May 2005) there are over 250 companies that use the Community Eco-label (compared with 87 in August 2001), on several hundreds of their products. Textiles, indoor paints and varnishes, and tourist accommodation service are the most successful product groups in terms of the number of applicants. The distribution of Community Eco-label holders and their products over the European Union and the European Economic Area is still fairly uneven but shows a much better and more balanced coverage of products compared with the past.

The number of Community Eco-label articles sold in 2004 is estimated to be around 400 million (compared with 54 million in 2001), with an ex-factory sales value estimated at EUR 700 million compared with EUR 114 million in 2001.

In terms of actual market penetration, Community Eco-labelled products are however still relatively insignificant, currently still accounting for far less than 1 % of the total market for the different product groups.

The main objective of the scheme should be to improve significantly its attractiveness to economic actors as well as to increase considerably the number of labelled products in order to make the Eco-label visible on the market and increase its environmental impact. At the same time, it should aim to continuously reinforce this visibility so as to move towards the full theoretical potential for market penetration of the Eco-label, which generally lies between 5 % and 25 % of the overall market (depending on the product group in question and the selectivity of its related Eco-label criteria).

In this respect, the Eco-label Competent Bodies should continue identifying target product groups in each Member State. An integrated marketing strategy could significantly improve consumer orientation and market attractiveness, as the European Flower Week of October 2004 has successfully proven.

The experience gained shows that the demand side has to be more proactively considered and the recent experience of the European Flower Week 2004 shows that a combined supply-demand strategy could make the difference.

It is very important to promote the recognition of the Community Eco-label within all Member States and to motivate companies to apply for it and to emphasise the practical benefits that they can gain from it.

The need for a common consumer survey methodology has arisen from the work of marketing management group throughout the implementation of the first working plan. Surveys need to be undertaken to monitor the degree of recognition and to follow the development of consumer awareness. It will be important to promote the recognition of the Community Eco-label in all Member States and at the same time to share experiences in the implementation of the Eco-label between the ‘old’ and ‘new’ Member States.

A series of brochures, explaining the aims and meaning of the Eco-label for specific product groups, are being prepared by the Commission to accompany Eco-labelled products as they are sold to the consumer. A variety of brochures aiming at providing producers and retailers with information on the leading product group criteria have also been developed (general, textile products, footwear, laundry detergents, paints and varnishes). This material should be further improved and distributed systematically by the members of the EUEB.

In order to optimise the use of marketing resources Member States should work in co-operation with producers with the aim of organising common marketing campaigns in their countries.

Objectives

Annual increase of at least 50 % of the value and/or number of Eco-labelled articles.

Achieve before the end of the working plan a minimum level of visibility in all the Member States, including a methodology on how to measure it in a cost-effective way.

All relevant manufacturers and retailers should be aware of the Community Eco-label and in the long-term, more than half of European consumers should recognise the Community Eco-label logo as a label of environmental excellence.

Actions

Before the end of the first year of the implementation of this working plan the Marketing Management group, with input from the Member States, should make recommendations on how ‘Market penetration, visibility and consumer awareness’ can be measured and on what the target levels of such awareness should be, taking into consideration the experienced gained from the Flower Week campaign of 2004.

The EUEB should improve the reporting mechanisms already in place to establish annual statistics for tracking this market penetration for the different product groups.

The EUEB, Member States and the Commission should promote the Community Eco-label in order to reach the agreed targets. In particular, retailers and public procurement officers (see below) should be targeted. These actions should be reported (and information on them exchanged) during the EUEB meetings at least once a year. In parallel, feedback from stakeholders should be systematically sought and taken into account.

To this end each Member State should develop a marketing strategy which should include the relevant activities in order of priority.

Alliances with all interested parties (including NGOs, producers, consumer organisations and retailers) must be built up, as appropriate, in order to increase the knowledge of the scheme in these organisations and encourage marketing of the Flower through their contact networks.

The EUEB, Member States and the Commission should promote the sharing of experiences in the implementation of the Eco-label between the ‘old’ and ‘new’ Member States e.g. in the form of organised tutoring sessions.

See also joint promotional actions (sections 4b and 5)