What: Sustainability has become increasingly interconnected with luxury offerings for Chinese customers, who are becoming more and more concerned about sustainability issues.

Why it is important:  A shift in consumer priorities is significantly reflected in the willingness to pay extra for environmentally-friendly features.

While some critics contend that this is more about ‘greenwashing’ rather than a genuine concern for the environment, the business case for sustainability is changing how labels create value.

Jing Daily recently completed a survey of data that concluded although environmental activism in China is tame compared to other nations, mainlanders appear to care more than many of their global peers.

This shift in consumer priorities is significantly reflected in the willingness to pay extra for environmentally friendly features. This will vary according to spending power and product category. EY reports that a higher percentage of high-income Chinese consumers are willing to pay between 11 and 30 percent premium for buying an electric vehicle compared to US consumers.

Sustainability means different things to different people. This can be broadly attributed to how consumers are affected personally. For instance, according to Ipsos, air pollution was the leading environmental concern for Chinese respondents with 45 percent (versus 24 percent for US respondents).

Many families visit play areas in shopping malls because it is deemed safer than playing outdoors. Sustainability is not only a driver of financial performance but also creativity and innovation, as younger consumers in China and around the world redefine what luxury means. However, authenticity and thus transparency will be key to implementing an effective green strategy, especially in the mainland.

A strong brand reputation is more important than ever. Most luxury players, with their strong credibility, have the advantage of possessing excellent reputations. Combined with actual transparent sustainable green business practices, this is an appealing formula.

How Chinese consumers decode the meaning of sustainability — and why it matters for luxury.