Greentailing our way to recovery
It's good to be green
In "Retail 2020: The future of retail. Insights from NZ and Australia*," The Australian Centre for Retail Studies - Monash University, highlights a number of major trends including that of ‘green’
and sustainability, with an increasing percentage of customers prepared to pay more for companies and products that are green, organic, sustainable, eco-friendly etc.
The report expands on the "greentailing" scenario and argues that going green may well
aid the recovery of the recession and beyond.
Greentailing is defined as retailing of environmentally friendly products: environmentally responsible retailing that involves the sale of products with the least impact on the environment or that increases the ecological awareness of the consumer.
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Greentailing is capitalising on the huge and growing demand for organic, sustainable and wellness-related products. As it evolves, greentailing will force both suppliers and retailers alike in every category to take notice. Leading edge greentailers, like Whole Foods and WalMart in the US and Tesco and Marks & Spencer in the UK , continue to grow and innovate at rates much faster than traditional competitors, and are forcing competitive responses. Many consumers don't believe that green products can actually perform and be priced competitively with non-green items. But retailers, led by WalMart and Tesco, are clearly demonstrating that investments in green pay off and that facilities, products, packaging and recycling can be both green and cost effective.
Driving consumers towards making green choices are consumer guilt and social pressures to become sustainable. Governments increasingly need to be seen to be responding and NGOs and charities ratchet up the guilt factor through public campaigns.
And greentailing continues to grow, even in the recession, because there are cost savings to be made from using less packaging, less power, charging customers for plastic bags etc. Going green is becoming mainstream. In Australia greentailing is growing 20% annually and is estimated to be valued at AU$25b within the next two years.
A multitude of studies show that consumers are prepared to reward companies with green credentials.
In 2008, AMP surveyed 3,200 consumers aged 18-49 for its Green AMPlified study, which sought to understand consumers' relationship to and feelings about the green movement. 57% said they would likey trust a green company; 60% would be likely to purchase products and 58% would be likely torecommend these products to others.
However, be sure of your green credentials before leaping on the green bandwagon. You may be accused of Greenwash - from Wikipedia: a term used to describe the practice of companies disingenuously spinning their products and policies as environmentally friendly. But maybe you're only trying to give yourself a green sheen - again from Wikipedia: the term used to describe organisations that attempt to show that they are adopting practices beneficial to the environment. *The report is available at $695 (earlybird rate until 1 September, 2009, then $995) from www.buseco.monash.edu.au
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