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TheIndustry.fashion in partnership with Avery Dennison

Conscious e-commerce: driving consumer loyalty through sustainable delivery

IN PARTNERSHIP WITH

TheIndustry.fashion | Averydennison.com/rbis Conscious e-commerce: driving consumer loyalty through sustainably delivery | 2

Section 1 Foreword


Foreword

At the recent G7 Summit in Biarritz, world leaders were told that the fashion industry could contribute up to a quarter of the world’s carbon budget by 2050 and that the industry was a bigger polluter than sectors such as the aeronautical and shipping industries combined.

Much of the criticism has centred on the waste involved during manufacturing and at consumption level. The fast fashion model in particular has led to a system of over-manufacturing leaving brands with tonnes of deadstock each season, while cheap prices encourage consumers to buy more clothes than they could ever hope to wear. All of which has led to unhappy outcomes such as fashion being incinerated by the container load, sent to landfill or left languishing unworn in wardrobes around the globe.

But the industry has responded, and in earnest too. At that same G7 Summit, some of the world’s major fashion leaders from the luxury houses of Kering to H&M and Zara owner Inditex came together to sign a pact to do better and to strive to create a more circular and sustainable industry, while many global players (including most of the signatories of that pact) have publicly stated environmental strategies in place.

Fashion, of course, is nothing if not entrepreneurial and creative. And the environmental challenge has also led to an eruption of new business models designed to encourage more conscious consumption. Start-ups and global players have rushed into the rental and resale (or recommerce) spaces to ensure clothes are given a longer useful life before being discarded (or rather

recycled). Indeed the global resale market is predicted to reach $41bn by 2022, up from $20bn in 2018, according to ThredUP’s 2018 Resale Report, while everyone from Urban Outfitters to Banana Republic and start-ups such as Hurr Collective and MyWardrobeHQ are driving a boom in clothing rental.

Couple this movement to rental and resale, which is largely conducted online, with an already expanding e-commerce market and it throws up another key area for focus: packaging and delivery. According to a recent report from The Freedonia Group, global e-commerce packaging demand is forecast to reach $22.1bn by 2023.

In this study we surveyed 3,000 online fashion shoppers (see Appendix for sample breakdown) across the key global markets of the US, UK, France and Germany and discovered that for them the sustainable credentials of the packaging and delivery services used to transport their purchases are almost as important as the sustainable credentials of the clothing itself (with 63% placing importance on packaging and 68% on clothing). Furthermore, consumers are prepared to put their money where their morals are with almost half saying they would pay extra for a plastic-free delivery service.

It’s clear that just as the focus on fashion waste has driven a requirement for urgent action as well as a significant opportunity, the same can be said of e-commerce packaging. This report examines this in detail.

Fashion has found itself under a, sometimes uncomfortable, spotlight in recent years. It has been outed as one of the world’s most polluting industries and has been the subject of scrutiny and criticism by environmental, animal and human rights campaigners, as well as by journalists and politicians.


Section 2 Consumer conscience – is it conscious?


Consumer conscience – is it conscious?

However, it’s not safe to assume that sustainability isn’t important on the basis of that one answer alone. While price comes first, shoppers are very conscious of the areas in which retailers could improve their performance when it comes to matters of sustainability.

When asked how important the sustainable credentials of the clothes they bought were, some 68% of shoppers said it was either somewhat important, important or very important, while 63% felt the same about the packaging their clothing was delivered in. So almost as many consumers consider the sustainability of the packaging to be as important as the sustainability of their clothing. When devising and revising their sustainable strategies, this is a powerful statistic for brands and retailers to bear in mind.

When asked what was the most important factor when buying fashion online (which about half of our respondents do more than once a month), sustainability doesn’t rank highly. Just 6% ranked it more highly than price, quality and design. Price on the other hand, was cited by 45% of consumers as the most important factor to consider. The answers are pretty consistent across the age groups too.

68%

63%

said the sustainable credentials of the

clothes they bought were important …

68%

63%

felt the same about the packaging

their clothing was delivered in


Consumer conscience – is it conscious? continued

There’s wide consensus too, across all age groups that fashion brands and retailers are over-packaging their e-commerce parcels or using materials perceived to be unsustainable. Some 63% of respondents agree to some extent that online fashion orders are delivered in excessive or unsustainable packaging, a further 20% are on the fence, leaving just 17% feeling satisfied that the brands and retailers are getting it right in this regard.

How strongly do you agree with the following statement:

When I receive my online fashion order, the brand or retailer has used too much/unsustainable packaging

STRONGLY AGREE

AGREE

SOMEWHAT AGREE

NEITHER AGREE NOR DISAGREE

SOMEWHAT DISAGREE

DISAGREE

STRONGLY DISAGREE

DON’T KNOW

16%

23%

24%

20%

7%

5%2% 3%


Section 3 Positive packaging and plastics-free


Positive packaging and plastics-free

Some 54% of consumers said they would be more likely to shop with a brand or retailer that offered a sustainable packaging option over one which did not.

This figure increases to an impressive 60% of shoppers under the age of 34, which proves the theory that Gen Zennials are much more drawn to brands that stand for positive values.

Interestingly, French shoppers are far more likely than any others to reward brands and retailers that offer sustainable packaging with 71% saying it would make them more likely to shop there. The US is the least concerned with just 43% of shoppers saying sustainable packaging would make them more loyal to a brand.

Far more significant than just being aware of the issue of over-packaging and unsustainable packaging, is the fact that consumers are prepared to reward those brands and retailers who make efforts to address the issue.

If a brand or retailer offered the choice of a sustainable packaging solution(e.g. reusable/recyclable/less waste), would that make your more likely to shop with that brand or retailer rather than at one who did not?

DON’T KNOW

IT WOULD MAKE NO DIFFERENCE

NO

YES

18-2

4

7%

23%

10%

60%

6%

24%

10%

60%

5%

24%

8%

52%

7%

30%

8%

55%

6%

37%

6%

51%

10%

38%

9%

43%

6%

17%

6%

71%

10%

24%

8%

58%

8%

38%

50%

8%

37%

51%

25

-34

35

-44

45

-54

55

-64

65

+

UK

US

FR

AN

CE

GE

RM

AN

Y

DON’T KNOW

IT WOULD MAKE NO DIFFERENCE

NO

YES

18-2

4

7%

23%

10%

60%

6%

24%

10%

60%

5%

24%

8%

52%

7%

30%

8%

55%

6%

37%

6%

51%

10%

38%

9%

43%

6%

17%

6%

71%

10%

24%

8%

58%

8%

38%

50%

8%

37%

51%

25

-34

35

-44

45

-54

55

-64

65

+

UK

US

FR

AN

CE

GE

RM

AN

Y

of French shoppers agreed

71%of UK shoppers agreed

51%of US shoppers agreed

43%of German shoppers agreed

58%


Case StudyEliminating Plastics

Christopher Raeburn


Eliminating Plastics Christopher Raeburn

British fashion designer Christopher Raeburn has built his brand Raeburn around the ethos of Remade, Reduced, Recycled, which spans his entire business from the clothes he produces to the packaging. The designer turned to Avery Dennison to create an e-commerce transit bag solution that would have a better carbon footprint than those currently available on the market. Avery Dennison proposed and designed the bag using BioFlex™.

BioFlex™. is made from a non petroleum replaceable raw material (sugarcane), as opposed to most traditional bags, which are produced from fossil based polyethylene (PE). The bags are 100% recyclable alongside regular PE, without the side effect of potentially contaminating the waste stream that biodegradable and compostable alternatives do.

“All our online orders are shipped next day delivery in our brand new bags which we’ve developed with our branding partner Avery Dennison RBIS; made from sustainable Bio Polyethylene (B-PE) derived from sugarcane grown in Brazil. 100% recyclable, 100% made from renewable resources!”

Christopher Raeburn

The use of BioFlex avoids the need for plastic produced from finite fossil fuels. Ethanol produced from sugarcane, which is a renewable resource, is not taken from foodstocks but is purpose grown, and as the plant grows it captures and stores CO2 from the atmosphere, helping to reduce greenhouse gas emissions.

Life-expectancy of the bags is also enhanced through the use of perforation and personalised adhesive double tape for easy returns.


Section 4 Unboxing the potential of packaging


Unboxing the potential of packaging

From a range of factors that would encourage customers to re-order from a brand or retailer “Packaging that I can keep and reuse” ranked the most highly. Some 30% of respondents awarded it a Very Important rating, while a further 27% thought it important. Only 20% of respondents believed it to be of little or no importance.

The balance therefore of creating packaging that people want to keep and producing packaging that is also sustainable is one that brands and retailers, and in particular, those serving the premium and luxury markets, will have to weigh up.

The point at which a consumer unboxes their e-commerce order should be the point at which they are feeling the most positive about the shopping experience and the brand from which they have purchased. In too many cases this moment is under-used by brands to drive excitement and encourage further purchases.

Survey question: Which of the following factors would make you more likely to re-order from a fashion brand or retailer at the point of unboxing your order?

Please attribute a score of 1-5 to each with 1 being Very Important and 5 being Not at all Important.

1 VERY IMPORTANT

2

3

4

5 NOT AT ALL IMPORTANT

Packaging that I can keep and re-use

Sample products contained with my order

Special offers contained with my order

Packaging that is a pleasure to open

Additional information about the sustainable credentials of the packaging used

Additional information about the sustainable credentials of the products I have purchased

Additional information about the sustainable credentials of the delivery service used

Additional information in my order about other products I might like to buy

30% 27% 22% 10% 10%

27% 26% 25% 11% 11%

26% 26% 25% 12% 10%

23% 22% 27% 11% 16%

18% 22% 29% 15% 15%

18% 23% 31% 14% 15%

16% 21% 32% 14% 16%

15% 21% 30% 15% 19%

1 VERY IMPORTANT

2

3

4

5 NOT AT ALL IMPORTANT

Packaging that I can keep and re-use

Sample products contained with my order

Special offers contained with my order

Packaging that is a pleasure to open

Additional information about the sustainable credentials of the packaging used

Additional information about the sustainable credentials of the products I have purchased

Additional information about the sustainable credentials of the delivery service used

Additional information in my order about other products I might like to buy

30% 27% 22% 10% 10%

27% 26% 25% 11% 11%

26% 26% 25% 12% 10%

23% 22% 27% 11% 16%

18% 22% 29% 15% 15%

18% 23% 31% 14% 15%

16% 21% 32% 14% 16%

15% 21% 30% 15% 19%


Unboxing the potential of packaging continued

Farfetch-owned luxury retailer Brownsfashion.com has, from July of this year, started offering its customers a choice of its luxury packaging or a more sustainable option at checkout. All paper and cardboard used in its packaging is now made from FSC approved sources and its dust bags and suit carriers are made entirely from recycled materials. Rival Matchesfashion.com also takes this approach with shoppers able to choose from its marbled paper covered luxury boxes or a more simple and sustainable solution at checkout. If a shopper opts for the luxury option, the chances are it’s because they want to keep it and use if for other purposes.


Section 5Takeaways


There is wide consensus that brands and retailers use too much/unsustainable packaging with 63% of our 3,000 consumers agreeing. Whether this is a fair perception or not, it shows that more must be done to communicate the efforts brands and retailers are making in this area.

Consumers place almost as much importance on the sustainable credentials of the packaging they receive their clothes in as they do the clothing itself, at 63% vs 68%. This is a powerful message to brands and retailers about the priorities for their sustainability strategies.

Consumers will reward brands and retailers for their efforts with sustainable packaging with 54% saying they would be more likely to shop with a brand or retailer that offered a sustainable solution over one that did not. This figure rises to 60% among consumers under 34 years old.

Plastics are unpopular. Alternatives would be welcomed by consumers of all ages with 45% saying they would be prepared to pay more for a plastics-free delivery solution.

Some 52% of consumers surveyed say they recycled the packaging their purchases came in but keeping and reusing packaging appeals to consumers. 30% of consumers thought that having packaging they could keep and reuse was “very important” and a further 27% ranked it as important. Design of packaging should therefore be front of mind.

There is considerable opportunity in unboxing when it comes to driving further sales. Consumers would be very open to receiving discounts and offers, as well as samples.

Innovative and sustainable packaging encourages young consumers in particular to share their online purchases via social media, meaning it has added marketing value. Some 44% of 18-24 year olds who share images on social media would be more inclined to do so if their parcels were innovatively packaged.

Takeaways

1 5

2 6

3 7

4


Appendix

About the study and the sample

Avery Dennison and TheIndustry.fashion surveyed 3,000 online fashion shoppers across the US, UK, France and Germany during September 2019 in partnership with leading consumer research company Savanta. To qualify to participate in the study, respondents must have purchased fashion online within the preceding three months.

Gender split: 52% of respondents were female, 47% male with 1% preferring not to say.

Age breakdowns: 18-24 – 12%; 25-34 – 19%; 35-44 – 17%; 45-54 – 19%; 55-64 – 18%; 65+ 16%.

Some 78% of those surveyed buy fashion in both online and offline environments with 22% buying online only.

14% of those surveyed buy fashion online once a week or more, 37% once a month or more, 28% once every three months or more, 15% once every six months or more with the balance stating they didn’t know.

TheIndustry.fashion | Averydennison.com/rbis Conscious e-commerce: driving consumer loyalty through sustainably delivery

Avery Dennison Michael Kaufmann Global Business Development Director, Online

[email protected]/rbis

@averydennison

@averydennison

@averydennison

TheIndustry.fashion

Antony Hawman Chief Partnerships Officer

T: 020 3912 0001 [email protected] www.theindustry.fashion

@theindustryfashion

@theindustryfash

@theindustryfashion

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