DisposabilityorSustainability
Power is shifting ….
greenGreed   Green
greenInstitutions   Individuals
greenLegislators   Local Activists
greenPop-up   Permanent
greenThrow out   Wear out
Fad   Fashion
The way we consume ischanging
‘The ruling  ideas of  each age  have ever  been the  ideas of its  ruling class’Karl Marx
Roland Mouret US$2,150   Topshop £60
‘Bling is over. Redcarpetry covered withrhinestones is out.I call it the ‘newmodesty’.This whole crisis islike a big sprin...
Liberated1950s                              Ostentatious           Careless              Impulsive                      19...
Current wealth = materialism
Business                       Increasing                        Efficiency                                               ...
Hypothesis• ‘Catalyst: ‘The Great Recession’• Efficiency now the top of the business agenda• Lack of capital in markets is...
Sustainability is not a marketposition, rather it is part of abusiness plan
Liberated             Ostentatious1950s                      1980s                                                     Car...
INSERT VIDEO
1. The facts2. Consumer changes3. Businesses who are changing4. What you can do?5. Close6. Questions
1. The facts
3 key areas of concern1. Production2. Landfill3. Recyclability
1. Production 1kg of        2kgs of     45kgs of   1kgs ofappareloutput          =     CO2              emitted to        ...
In the UK, 2 million tonnes ofclothes are bought each year
An increase of 33% since2004, which is equal to…
1.3 million tonnes of Co2orAn extra 48,792 cars on the roadeach year
18 million tonnes of waste wateror14 Olympic sized pools every year
700,000,000 kilos of solid wasteorAn extra 4,666,667 full garbagebags every year
2. Landfill             10             7.5          garments           bought                     =   end up in           ...
This is the fastest growing areain landfill, in the past 5 yearsthis has increased by 25%,which is equal to…
1.5 million tonnes of clothingorAn extra 167 t-shirts bought byevery Australian every year
3. RecyclabilityThe low quality of disposable fashion effectscharity          Low quality       Sent to charity           ...
‘Isnt the whole idea of (fast)fashion the antithesis of asustainable approach…Each newtrend that sweeps through thehigh st...
2. The consumer thinking
Curve of adoption                            Tipping point                       Early           Late                     ...
Considered consumption has been led bythe ‘ruling class’ for the past 5 years.The recession is pushing the socialmovement ...
Ruling Class (Innovators)IdealistsWell educatedOpinionated and politically activeStrong sense of social responsibilityBoom...
Statement-driven:‘Green isgood…I’m green,says ‘I’m good’’
Followers (Early Adopters)FollowersTech SavvyRuled by need to know ‘First’Savvy/ impulsiveGeneration YPeer group orientated
Participation-driven:‘I want to be green,to be seen as part ofthe team’
Value Middle (Early Majority)DeliberatorsCommunity-orientedTrend-lessFickle and mercurial (trade down and out)Older more c...
Value-Driven:‘There’s real valuein being green’
‘This is the only  trend I’ve seen in  my fashion career  where I can say  with absolute  confidence, it is  not going awa...
3. Businesses who arechanging
‘It’s a steep andperilous ladder toclimb to convincethe consumer thatyou are actingfairly…. based onwhat you do as acompan...
6 case studies  Bigbox        Middle       Brand Walmart        Marks &      Nike                SpencerFast fashion   Dis...
‘Dark Lord’ going greenWalmart is the worlds largest retailerRetail’s largest carbon footprintWas renown for importing in ...
‘ To me, there can’t beanything good aboutputting all thesechemicals in the air…the smog you see incities…so thatsomebody ...
Sustainability = good businesseveryday low cost means everyday low price
Putting on pressureHedge themselves against suppliers – forcingsustainabilityThe greener their suppliers are the more cost...
The green giantWalmart have taken their environmentalmessage to marketPositioned as part of their value propositionStrateg...
2,000 vendors committed to reducingpackagingSold 100 million CF Light bulbs in 15 monthsWorld largest purchaser of organic...
‘I can honestly say Inever expected to beat Walmarts headquarters watchingpeople dothe Walmart cheer’John Hocevar, Greenpe...
• image
The middle market plan£200 million sustainability initiative ‘plan a’Mission: ‘to become carbon neutral, have nowaste goin...
100 point plan, setting ‘realistic but influential’goals     Business        Suppliers      Consumers      efficiency     ...
Oxfam clothing exchangeGoal: increase the amount of recycled materialit usesSupported by consumer campaign with Oxfamcloth...
So far they havereduced the amountof clothes sent tolandfill by 1,000tonnes
Wash at 30M&S is encourage customer to wash clothes at 30 degreesSaves 40% energy per wash‘Think climate – wash at 30’ on ...
"We continue to makesolid progress andalthough Plan A is lessthan two years old it isalready becomingingrained into the wa...
• Image here
Garbage to goldPartnership with Steve Nash (basketballer andenvironmentalist)Nike have created the first performance recyc...
‘any opportunityto promote theenvironment andpreserve ourplanet is a step inthe right direction’ Steve Nash
Recyclable fast fashionJapanese-based ‘fast fashion’ retailer Uniqlohas been recycling its wares since 2001Collections are...
Fashion to fuelItems no longer wearable are recycled:1. Fiber used to make thermal insulation work gloves and   cotton rag...
‘Uniqlo believes itis not onlyresponsible formanufacturing andselling truly greatclothing…but alsofor making sure thevalue...
Payless shoe source
Discounter reduces footprintSigned Summer Rayne Oakes(model/environmentalist) as a consultant to anew range of green foot ...
ad
‘The sustainabilitymovement is pervasivetoday and is touching somany elements ofconsumers’ daily lives. It’sour mission to...
Filipa K
High-end made to lastSwedish fashion-basics brand, Filipa K createdan outlet for their ‘used clothes’Extra revenue stream ...
“We are incredibly proudto be able to work withsustainability in this way.The fact that the superbquality and design of ou...
4. What can you do?
Recognise Re-Learn Re-AlignRe-EngineerRe-Launch
1. RecogniseRecognise the trend to sustainability inyour business practices
2. Re-learnRelearn the behaviors of the‘considered consumer’ segments
3. Re-alignRe-align your offering to your chosenconsumer segment:    - Ruling Class (Innovators)    - Followers (early ado...
4. Re-engineerRe-engineer your business bymaking long term efficiency the keydriver
5. Re-launchRe-launch your brand with clarityaround your point of sustainabledifference
Recognise Re-Learn Re-AlignRe-EngineerRe-Launch
To summarize…1. Sustainability is not a trend2. When implemented correctly directly   correlates to business efficiency3. ...
FootnoteIf you don’t change ….legislation will force youDept-Enviro Food Rural Affairs ‘sustainable clothingaction plan’La...
it’s not easy being green
….simple questions, pleaseStephen.kulmar@retailoasis.com
Final considered consumption
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Final considered consumption
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Final considered consumption

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In the last century no other issue has impacted consumer consciousness like sustainability. We take an in-depth look at its impact on consumption and explore the implications for retailers.

Read RetailOasis' latest reports at www.retailoasis.com

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Final considered consumption

  1. 1. DisposabilityorSustainability
  2. 2. Power is shifting ….
  3. 3. greenGreed Green
  4. 4. greenInstitutions Individuals
  5. 5. greenLegislators Local Activists
  6. 6. greenPop-up Permanent
  7. 7. greenThrow out Wear out
  8. 8. Fad Fashion
  9. 9. The way we consume ischanging
  10. 10. ‘The ruling ideas of each age have ever been the ideas of its ruling class’Karl Marx
  11. 11. Roland Mouret US$2,150 Topshop £60
  12. 12. ‘Bling is over. Redcarpetry covered withrhinestones is out.I call it the ‘newmodesty’.This whole crisis islike a big springhousecleaning – bothmoral and physical’Karl Lagerfeld
  13. 13. Liberated1950s Ostentatious Careless Impulsive 1980s 1990s 2000s Consumption Consumption Consumption Consumption Conspicuous consumption
  14. 14. Current wealth = materialism
  15. 15. Business Increasing Efficiency availability cut costs AffordableGovernment sustainable Carbon Recession mass marketLegislations product activist pressure ‘Ruling class’ green status
  16. 16. Hypothesis• ‘Catalyst: ‘The Great Recession’• Efficiency now the top of the business agenda• Lack of capital in markets is creating sustainable choice for consumers
  17. 17. Sustainability is not a marketposition, rather it is part of abusiness plan
  18. 18. Liberated Ostentatious1950s 1980s Careless Impulsive Considered 1990s 2000s 2010s Consumption Consumption Consumption Consumption Consumption End of conspicuous consumption
  19. 19. INSERT VIDEO
  20. 20. 1. The facts2. Consumer changes3. Businesses who are changing4. What you can do?5. Close6. Questions
  21. 21. 1. The facts
  22. 22. 3 key areas of concern1. Production2. Landfill3. Recyclability
  23. 23. 1. Production 1kg of 2kgs of 45kgs of 1kgs ofappareloutput = CO2 emitted to waste water solid waste air
  24. 24. In the UK, 2 million tonnes ofclothes are bought each year
  25. 25. An increase of 33% since2004, which is equal to…
  26. 26. 1.3 million tonnes of Co2orAn extra 48,792 cars on the roadeach year
  27. 27. 18 million tonnes of waste wateror14 Olympic sized pools every year
  28. 28. 700,000,000 kilos of solid wasteorAn extra 4,666,667 full garbagebags every year
  29. 29. 2. Landfill 10 7.5 garments bought = end up in landfill
  30. 30. This is the fastest growing areain landfill, in the past 5 yearsthis has increased by 25%,which is equal to…
  31. 31. 1.5 million tonnes of clothingorAn extra 167 t-shirts bought byevery Australian every year
  32. 32. 3. RecyclabilityThe low quality of disposable fashion effectscharity Low quality Sent to charity clothes store Unable to be Unable to sell charitable
  33. 33. ‘Isnt the whole idea of (fast)fashion the antithesis of asustainable approach…Each newtrend that sweeps through thehigh street renders the old trendobsolete? Its difficult to imaging amore wasteful system.’ Mark Lynas, Climate Change Specialist
  34. 34. 2. The consumer thinking
  35. 35. Curve of adoption Tipping point Early Late majority majority EarlyInnovators adopters 34% 34% Laggards 2.5% 13.5% 16% Considered consumption
  36. 36. Considered consumption has been led bythe ‘ruling class’ for the past 5 years.The recession is pushing the socialmovement to its tipping pointForcing the top half of the market to adaptor consider adaptation
  37. 37. Ruling Class (Innovators)IdealistsWell educatedOpinionated and politically activeStrong sense of social responsibilityBoomers & Generation XStatus-oriented
  38. 38. Statement-driven:‘Green isgood…I’m green,says ‘I’m good’’
  39. 39. Followers (Early Adopters)FollowersTech SavvyRuled by need to know ‘First’Savvy/ impulsiveGeneration YPeer group orientated
  40. 40. Participation-driven:‘I want to be green,to be seen as part ofthe team’
  41. 41. Value Middle (Early Majority)DeliberatorsCommunity-orientedTrend-lessFickle and mercurial (trade down and out)Older more conservativeWork to a budget
  42. 42. Value-Driven:‘There’s real valuein being green’
  43. 43. ‘This is the only trend I’ve seen in my fashion career where I can say with absolute confidence, it is not going away’Julie Gilhart, fashion directorBarneys
  44. 44. 3. Businesses who arechanging
  45. 45. ‘It’s a steep andperilous ladder toclimb to convincethe consumer thatyou are actingfairly…. based onwhat you do as acompany (notmarketing)’ Anon
  46. 46. 6 case studies Bigbox Middle Brand Walmart Marks & Nike SpencerFast fashion Discounter High end Uniqlo Payless Fillipa k
  47. 47. ‘Dark Lord’ going greenWalmart is the worlds largest retailerRetail’s largest carbon footprintWas renown for importing in order to keep prices down
  48. 48. ‘ To me, there can’t beanything good aboutputting all thesechemicals in the air…the smog you see incities…so thatsomebody can buy anitem for less money in adeveloped country.Those things are justinherently wrong,whether you’re anenvironmentalist or not.’H. Lee Scott, former CEO Walmart
  49. 49. Sustainability = good businesseveryday low cost means everyday low price
  50. 50. Putting on pressureHedge themselves against suppliers – forcingsustainabilityThe greener their suppliers are the more costefficient Walmart isEg. P&G slimmed down laundry detergents,better value and less space on shelf
  51. 51. The green giantWalmart have taken their environmentalmessage to marketPositioned as part of their value propositionStrategy to leverage saving + communitymindedness of early middle
  52. 52. 2,000 vendors committed to reducingpackagingSold 100 million CF Light bulbs in 15 monthsWorld largest purchaser of organic cotton15% increase in retail energy efficiencyGlobal Co2 Emissions is down to 20,388,574
  53. 53. ‘I can honestly say Inever expected to beat Walmarts headquarters watchingpeople dothe Walmart cheer’John Hocevar, Greenpeacecampaigner
  54. 54. • image
  55. 55. The middle market plan£200 million sustainability initiative ‘plan a’Mission: ‘to become carbon neutral, have nowaste going to landfill, ensure raw materials aresustainable, raise the bar in ethical trading, andhelp customers lead healthier lives by 2012’
  56. 56. 100 point plan, setting ‘realistic but influential’goals Business Suppliers Consumers efficiency product action
  57. 57. Oxfam clothing exchangeGoal: increase the amount of recycled materialit usesSupported by consumer campaign with Oxfamclothing exchangeCustomers were given a coupon for £5 to usein store when they recycled their clothes
  58. 58. So far they havereduced the amountof clothes sent tolandfill by 1,000tonnes
  59. 59. Wash at 30M&S is encourage customer to wash clothes at 30 degreesSaves 40% energy per wash‘Think climate – wash at 30’ on the garment care labels
  60. 60. "We continue to makesolid progress andalthough Plan A is lessthan two years old it isalready becomingingrained into the waywe do business.Conditions may bechallenging on the highstreet but Plan A hasmade us think of newways of working’Stuart Rose, CEO
  61. 61. • Image here
  62. 62. Garbage to goldPartnership with Steve Nash (basketballer andenvironmentalist)Nike have created the first performance recycledbasketball shoe‘Trash talk’, made from their own manufacturingwaste and modeled after Nash’s shoe (RRP$100)
  63. 63. ‘any opportunityto promote theenvironment andpreserve ourplanet is a step inthe right direction’ Steve Nash
  64. 64. Recyclable fast fashionJapanese-based ‘fast fashion’ retailer Uniqlohas been recycling its wares since 2001Collections are held in March and Septemberin Japanese storesWearable items distributed to developingcountries
  65. 65. Fashion to fuelItems no longer wearable are recycled:1. Fiber used to make thermal insulation work gloves and cotton rags2. Converted into power generating fuel.Since March 2007, 800,000 items had beenrecycled
  66. 66. ‘Uniqlo believes itis not onlyresponsible formanufacturing andselling truly greatclothing…but alsofor making sure thevalue of clothing isfully utilizedthrough reuse orrecycle’
  67. 67. Payless shoe source
  68. 68. Discounter reduces footprintSigned Summer Rayne Oakes(model/environmentalist) as a consultant to anew range of green foot wearRetailing for less than US$30 from April 2009Made from sustainable and eco-friendlymaterials
  69. 69. ad
  70. 70. ‘The sustainabilitymovement is pervasivetoday and is touching somany elements ofconsumers’ daily lives. It’sour mission todemocratise the latestideas in footwear andaccessories…and thebiggest idea is to makethem green’Matt Rubel, CEO
  71. 71. Filipa K
  72. 72. High-end made to lastSwedish fashion-basics brand, Filipa K createdan outlet for their ‘used clothes’Extra revenue stream for the brand, selling itswares to customer not traditionally in theirprice bracketCurrently located in Stockholm, run by a 3rdparty ‘vintage store owner’
  73. 73. “We are incredibly proudto be able to work withsustainability in this way.The fact that the superbquality and design of ourproducts enable us tooperate a second handconcept is very much inline with the things forwhich Filippa K stands,”Filippa Knutsson, Creative Director.
  74. 74. 4. What can you do?
  75. 75. Recognise Re-Learn Re-AlignRe-EngineerRe-Launch
  76. 76. 1. RecogniseRecognise the trend to sustainability inyour business practices
  77. 77. 2. Re-learnRelearn the behaviors of the‘considered consumer’ segments
  78. 78. 3. Re-alignRe-align your offering to your chosenconsumer segment: - Ruling Class (Innovators) - Followers (early adopters) - Value (early middle)
  79. 79. 4. Re-engineerRe-engineer your business bymaking long term efficiency the keydriver
  80. 80. 5. Re-launchRe-launch your brand with clarityaround your point of sustainabledifference
  81. 81. Recognise Re-Learn Re-AlignRe-EngineerRe-Launch
  82. 82. To summarize…1. Sustainability is not a trend2. When implemented correctly directly correlates to business efficiency3. Sustainability is not a continuing expense
  83. 83. FootnoteIf you don’t change ….legislation will force youDept-Enviro Food Rural Affairs ‘sustainable clothingaction plan’Launched at London Fashion Week, developing 20product road maps – clothing is oneDevelopment stage to help high street retailersenforce more sustainable practice (esp. supply chain)
  84. 84. it’s not easy being green
  85. 85. ….simple questions, pleaseStephen.kulmar@retailoasis.com

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