final considered consumption
DESCRIPTION
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.comTRANSCRIPT
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Disposability
or
Sustainability
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Power is shifting ….
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greenGreed Green
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greenInstitutions Individuals
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greenLegislators Local Activists
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greenPop-up Permanent
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greenThrow out Wear out
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Fad Fashion
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The way we consume is changing
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‘The ruling ideas of each age have ever been the ideas of its ruling class’
Karl Marx
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Roland Mouret US$2,150 Topshop £60
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‘Bling is over. Red carpetry covered with rhinestones is out. I call it the ‘new modesty’. This whole crisis is like a big spring housecleaning – both moral and physical’
Karl Lagerfeld
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1950
s Liberated Consumption
1980
s Ostentatious Consumption
1990
s Careless Consumption
2000
s Impulsive Consumption
Conspicuous consumption
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Current wealth = materialism
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Business Increasing Efficiency
Affordable sustainable
mass market product
‘Ruling class’ green status
Government Carbon
LegislationsRecession
activist pressure
availability
cut costs
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Hypothesis
• ‘Catalyst: ‘The Great Recession’
• Efficiency now the top of the business agenda
• Lack of capital in markets is creating sustainable choice for consumers
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Sustainability is not a market position, rather it is part of a business plan
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1950
s Liberated Consumption
1980
s Ostentatious Consumption
1990
s Careless Consumption
2000
s Impulsive Consumption
2010
s Considered Consumption
End of conspicuous consumption
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INSERT VIDEO
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1. The facts
2. Consumer changes
3. Businesses who are changing
4. What you can do?
5. Close
6. Questions
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1. The facts
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3 key areas of concern
1. Production2. Landfill3. Recyclability
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2kgs of CO2
emitted to air
45kgs of waste water
1kgs of solid
waste
1kg of apparel output
=
1. Production
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In the UK, 2 million tonnes of clothes are bought each year
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An increase of 33% since 2004, which is equal to…
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An extra 48,792 cars on the road each year
or
1.3 million tonnes of Co2
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14 Olympic sized pools every year
or
18 million tonnes of waste water
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An extra 4,666,667 full garbage bags every year
or
700,000,000 kilos of solid waste
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7.5 end up in landfill
10 garments
bought =
2. Landfill
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This is the fastest growing area in landfill, in the past 5 years this has increased by 25%, which is equal to…
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An extra 167 t-shirts bought by every Australian every year
or
1.5 million tonnes of clothing
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3. Recyclability
Low quality clothes
Sent to charity store
Unable to sellUnable to be charitable
The low quality of disposable fashion effects charity
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‘Isn't the whole idea of (fast) fashion the antithesis of a sustainable approach…Each new trend that sweeps through the high street renders the old trend obsolete? Its difficult to imaging a more wasteful system.’
Mark Lynas, Climate Change Specialist
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2. The consumer thinking
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Curve of adoption Tipping point
LaggardsInnovators2.5%
Early adopters
13.5%
Early majority
34% 34%
Late majority
16%
Considered consumption
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Considered consumption has been led by the ‘ruling class’ for the past 5 years.
The recession is pushing the social movement to its tipping point
Forcing the top half of the market to adapt or consider adaptation
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Ruling Class (Innovators)
IdealistsWell educated Opinionated and politically activeStrong sense of social responsibilityBoomers & Generation XStatus-oriented
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Statement-driven:‘Green is good…I’m green, says ‘I’m good’’
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Followers (Early Adopters)
FollowersTech Savvy Ruled by need to know ‘First’Savvy/ impulsiveGeneration YPeer group orientated
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Participation-driven:‘I want to be green, to be seen as part of the team’
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Value Middle (Early Majority)
DeliberatorsCommunity-orientedTrend-lessFickle and mercurial (trade down and out)Older more conservativeWork to a budget
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Value-Driven:‘There’s real value in being green’
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‘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 director Barneys
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3. Businesses who are changing
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‘It’s a steep and perilous ladder to climb to convince the consumer that you are acting fairly…. based on what you do as a company (not marketing)’ Anon
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6 case studies
Bigbox
Walmart
Middle
Marks & Spencer
Fast fashion
Uniqlo
Discounter
Payless
Brand
Nike
High end
Fillipa k
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‘Dark Lord’ going green
Walmart is the worlds largest retailer
Retail’s largest carbon footprint
Was renown for importing in order to keep prices down
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‘ To me, there can’t be anything good about putting all these chemicals in the air… the smog you see in cities…so that somebody can buy an item for less money in a developed country. Those things are just inherently wrong, whether you’re an environmentalist or not.’
H. Lee Scott, former CEO Walmart
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Sustainability = good business
everyday low cost means everyday low price
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Putting on pressure
Hedge themselves against suppliers – forcing sustainability
The greener their suppliers are the more cost efficient Walmart is
Eg. P&G slimmed down laundry detergents, better value and less space on shelf
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The green giant
Walmart have taken their environmental message to market
Positioned as part of their value proposition
Strategy to leverage saving + community mindedness of early middle
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2,000 vendors committed to reducing packaging
Sold 100 million CF Light bulbs in 15 months
World largest purchaser of organic cotton
15% increase in retail energy efficiency
Global Co2 Emissions is down to 20,388,574
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‘I can honestly say I never expected to be at Walmart's headquarters watching people do the Walmart cheer’
John Hocevar, Greenpeace campaigner
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The middle market plan
£200 million sustainability initiative ‘plan a’
Mission: ‘to become carbon neutral, have no waste going to landfill, ensure raw materials are sustainable, raise the bar in ethical trading, and help customers lead healthier lives by 2012’
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100 point plan, setting ‘realistic but influential’ goals
Business Suppliers Consumersefficiency product action
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Oxfam clothing exchange
Goal: increase the amount of recycled material it uses
Supported by consumer campaign with Oxfam clothing exchange
Customers were given a coupon for £5 to use in store when they recycled their clothes
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So far they have reduced the amount of clothes sent to landfill by 1,000 tonnes
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Wash at 30M&S is encourage customer to
wash clothes at 30 degrees
Saves 40% energy per wash
‘Think climate – wash at 30’ on the garment care labels
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"We continue to make solid progress and although Plan A is less than two years old it is already becoming ingrained into the way we do business. Conditions may be challenging on the high street but Plan A has made us think of new ways of working’
Stuart Rose, CEO
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Garbage to gold
Partnership with Steve Nash (basketballer and environmentalist)
Nike have created the first performance recycled basketball shoe
‘Trash talk’, made from their own manufacturing waste and modeled after Nash’s shoe (RRP$100)
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‘any opportunity to promote the environment and preserve our planet is a step in the right direction’
Steve Nash
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Recyclable fast fashion
Japanese-based ‘fast fashion’ retailer Uniqlo has been recycling its wares since 2001
Collections are held in March and September in Japanese stores
Wearable items distributed to developing countries
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Fashion to fuel
Items no longer wearable are recycled:
1. Fiber used to make thermal insulation work gloves and cotton rags
2. Converted into power generating fuel.
Since March 2007, 800,000 items had been recycled
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‘Uniqlo believes it is not only responsible for manufacturing and selling truly great clothing…but also for making sure the value of clothing is fully utilized through reuse or recycle’
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Payless shoe source
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Discounter reduces footprint
Signed Summer Rayne Oakes (model/environmentalist) as a consultant to a new range of green foot wear
Retailing for less than US$30 from April 2009
Made from sustainable and eco-friendly materials
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ad
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‘The sustainability movement is pervasive today and is touching so many elements of consumers’ daily lives. It’s our mission to democratise the latest ideas in footwear and accessories…and the biggest idea is to make them green’
Matt Rubel, CEO
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Filipa K
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High-end made to last
Swedish fashion-basics brand, Filipa K created an outlet for their ‘used clothes’
Extra revenue stream for the brand, selling its wares to customer not traditionally in their price bracket
Currently located in Stockholm, run by a 3rd
party ‘vintage store owner’
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“We are incredibly proud to be able to work with sustainability in this way. The fact that the superb quality and design of our products enable us to operate a second hand concept is very much in line with the things for which Filippa K stands,”
Filippa Knutsson, Creative Director.
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4. What can you do?
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Re-Launch
Re-Engineer
Re-Align
Re-Learn
Recognise
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1. Recognise
Recognise the trend to sustainability in your business practices
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2. Re-learn
Relearn the behaviors of the ‘considered consumer’ segments
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3. Re-align
Re-align your offering to your chosen consumer segment:
- Ruling Class (Innovators)
- Followers (early adopters)- Value (early middle)
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4. Re-engineer
Re-engineer your business by making long term efficiency the key driver
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5. Re-launch
Re-launch your brand with clarity around your point of sustainable difference
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Re-Launch
Re-Engineer
Re-Align
Re-Learn
Recognise
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To summarize…
1. Sustainability is not a trend
2. When implemented correctly directly correlates to business efficiency
3. Sustainability is not a continuing expense
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Footnote
If you don’t change ….legislation will force you
Dept-Enviro Food Rural Affairs ‘sustainable clothing action plan’
Launched at London Fashion Week, developing 20 product road maps – clothing is one
Development stage to help high street retailers enforce more sustainable practice (esp. supply chain)
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it’s not easy being green