The Colour of Retail

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Another way in which retailer’s are getting returns from their ‘green’ investments is the last 5 seconds of any marketing programme - We refer to the fourth P viz. Packaging. For instance, bags used by green retailers are reusable and recyclable and employees are trained to add more items per bag, reducing overall packaging cost. Mark & Spencer, made a bold move earlier this year by becoming the first major retailer to launch a nationwide carrier bag charging programme. To their dismay, however, there was a huge protest from consumers across UK . But, though there may have been some teething problems around customer inconvenience, “carrier bag usage is down by 80%,” explains Berg. Moreover, retail specialists claims that in regions like Europe where private labels command an equal if not bigger market share than big brands, most in-store labels are promoted as eco-friendly brands and the unique positioning helps retailers steal the show from big brands. No wonder Carrefour Eco Planète (a ‘natural’ tagged private label from Carrefour) is one of the most popular brand’s in its category and Carrefour holds the distinction of being France’s largest organic products retailer. Carrefour also is a propounder of recyclable bags. Even German super value store Aldi promotes its store brands with eco-friendly paper bags.

In tune, the global organic and eco-friendly market is growing by 39%, a mouth-watering delight for retailers in UK and USA. “In concentrated markets like Switzerland, USA and UK, supermarkets play a much greater role in community and that’s why these players are successful is promoting organic food,” explains Jonathan Banks, Business Insight Director, The Nielsen Company, UK.

About a year ago, when Lee Scott unveiled Sustainability 360 for engaging Wal-Mart’s associates, suppliers and customers in his ‘green’ campaign, altruism was far from his mind. He was indeed thinking about the great business sense it makes to reduce waste (of energy and packaging) on the one hand, and make money by selling environmentally friendly products, on the other. Sustainablity is vital for profitability, at least for retailers, it seems. Long Road Out of Eden gift-wrapped in sustainable paper, anyone?

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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