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....

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 Final considered consumption Presentation Transcript

    • 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 springhousecleaning – bothmoral and physical’Karl Lagerfeld
    • Liberated1950s Ostentatious Careless Impulsive 1980s 1990s 2000s Consumption Consumption Consumption Consumption Conspicuous consumption
    • Current wealth = materialism
    • Business Increasing Efficiency availability cut costs AffordableGovernment sustainable Carbon Recession mass marketLegislations product activist pressure ‘Ruling class’ green status
    • Hypothesis• ‘Catalyst: ‘The Great Recession’• Efficiency now the top of the business agenda• Lack of capital in markets is creating sustainable choice for consumers
    • Sustainability is not a marketposition, rather it is part of abusiness plan
    • Liberated Ostentatious1950s 1980s Careless Impulsive Considered 1990s 2000s 2010s Consumption Consumption Consumption Consumption Consumption End of conspicuous consumption
    • 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 waste water solid waste air
    • 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 landfill
    • 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 clothes store Unable to be Unable to sell charitable
    • ‘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
    • 2. The consumer thinking
    • Curve of adoption Tipping point Early Late majority majority EarlyInnovators adopters 34% 34% Laggards 2.5% 13.5% 16% Considered consumption
    • 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
    • Ruling Class (Innovators)IdealistsWell educatedOpinionated and politically activeStrong sense of social responsibilityBoomers & Generation XStatus-oriented
    • 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 conservativeWork to a budget
    • 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 away’Julie Gilhart, fashion directorBarneys
    • 3. Businesses who arechanging
    • ‘It’s a steep andperilous ladder toclimb to convincethe consumer thatyou are actingfairly…. based onwhat you do as acompany (notmarketing)’ Anon
    • 6 case studies Bigbox Middle Brand Walmart Marks & Nike SpencerFast fashion Discounter High end Uniqlo Payless Fillipa k
    • ‘Dark Lord’ going greenWalmart is the worlds largest retailerRetail’s largest carbon footprintWas renown for importing in order to keep prices down
    • ‘ 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
    • Sustainability = good businesseveryday low cost means everyday low price
    • 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
    • The green giantWalmart have taken their environmentalmessage to marketPositioned as part of their value propositionStrategy to leverage saving + communitymindedness of early middle
    • 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
    • ‘I can honestly say Inever expected to beat Walmarts headquarters watchingpeople dothe Walmart cheer’John Hocevar, Greenpeacecampaigner
    • • image
    • 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’
    • 100 point plan, setting ‘realistic but influential’goals Business Suppliers Consumers efficiency product action
    • 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
    • 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 the garment care labels
    • "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
    • • Image here
    • 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)
    • ‘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 held in March and Septemberin Japanese storesWearable items distributed to developingcountries
    • 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
    • ‘Uniqlo believes itis not onlyresponsible formanufacturing andselling truly greatclothing…but alsofor making sure thevalue of clothing isfully utilizedthrough reuse orrecycle’
    • Payless shoe source
    • 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
    • ad
    • ‘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
    • Filipa K
    • 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’
    • “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.
    • 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 adopters) - Value (early middle)
    • 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. Sustainability is not a continuing expense
    • 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)
    • it’s not easy being green
    • ….simple questions, pleaseStephen.kulmar@retailoasis.com