videoclip below
Greentailing in Tough Times…
How are Consumers Reacting and Retailers Responding?
Neil Stern, McMillianDoolittle
Author, Greentailing
“Earth Friendly products won’t save the Earth if they don’t save people money.” Wal*Mart (1997)
Green-tailing is broad-based.
Drivers of change
“An Inconvient Truth”
External factors
Wal*Marts move in 2005 to use 100% renewable resources
Competitive Factors
Embracing green because its been success for competitors
Internal Factors
Demographic and behavioral shifts
“It Isn’t Easy Being Green…”
“Greenwashing” is a danger, the act of misleading customers.
Cadillac Hybrid Escalade
Frozen food vendors using a green factory but not green ingredients
The Consumer’s View on Green
Green began gaining real traction with consumers in 2007. Green continues to grow in importance to consumers. Importance of environmentally-friendly stores and products since economic climate has changed. The green performance stigma is disappearing.
Supermarkets and discount stores made headway in 2008 in communicating green—especially supermarket/grocery stores and discount stores. Apparel specialty retailers are not keeping up with other industries to appeal to green focused customers.
Greentailing 2.0: conscientious retailing built on environmentally sustainable, socially responsible and economically profitable business practices.
Think Green. Act Green. Convey Green. Sell Green.
Think Green
Green as a mission or core value, it will not happen in a company unless its built into the mission of the company. Greentailers set tangible goals.
Mark’s and Spencer’s Plan
1. Become carbon neutral
2. Send no waste to landfills
3. Extend sustainable sourcing
4. Help improve the lives of people in our supply chain
5. Help customers and employees live a healthier lifestyle
In your companies, who has a green officer—sustainable officer? Sustainability experts polled predict that 25% of Fortune 500 will appoint executive level Chief Sustainability Officers in 2009.
LEED certified retail buildings and using green technology within the retail space can prove to be beneficial to the consumer retail experience and the customer understanding of the retailer.
Greener packaging, smaller size, less transportation, less for the consumer to haul home has started to pop up on retail shelves.
Sustainable packaging to grab 32% of market by 2014.
Politics of plastic bags. CT, NYC and Seattle may impose five to twenty-cent tax on plastic bags. Tough, as we’re trying to change 50 years of habits with people, will take time.
Recycling programs have been nearly over-successful as they try to deal with the demand that retailers have to recycle products. Best Buy and Crocs dealing with these issues and supporting recycling efforts now. Staples is offering rewards for people to recycle items with them—
Green Housekeeping “Green” Seal of Approval, stepping in where the Gov’t has yet to regulate green products. Tesco, product labels shows a figure that measures the total emission of greenhouse gases during the production, distribution, storage and use of item.
Organic products growing double digits; but economy has taken an impact, consumers have moved away from organic products as they tighten their belts during rough economy.
Green cleaning, companies like Method have bridged the gap between cool, effective and green—a trifecta of branding.
Local has become the new organic. Local implies small, natural production process. Local means supporting fellow neighbors and the local economy.
Sears will begin selling men’s suits made of fabric blend of wool and polyester spun from recycled fabrics.
Conveying Green:
“We believe in being a good neighbor who cares about the environment” says Fresh & Easy in the UK
Buffalo Exchange
The clothing retailer donates to local nonprofit agencies in the community through its Tokens for Bags program, generating nearly $285,000 for local charities.
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