Dreaming of a new age of a sustainable world...or real WIP?!
Welcome to "nouveau monde", your "nouveau genre" (see, we even create new words) newsletter to better understand how to make the world better through the lens of retail. This is #43
Le menu du jour at nouveau monde is about some sustainable new marketing approach from an American Retailer and the real concerns of customers regarding delivery.
Things move fast in retail and sustainability, we’re really happy to help you get the right tips and be inspired!
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Today's newsletter is 655 words, a 3-minutes read.
Put the right Target to a sustainable expansion
Target has started adding a label to denote products with packaging that is refillable, reusable, compostable or made from recycled or plastic-reducing material to help customers reduce waste.
The retailer has rolled out the Target Zero icon for some beauty, personal care and household products, with more products to be added to the program that's part of the Target Forward sustainability strategy, which also includes the goal of having all private-label items' plastic packaging be recyclable, compostable or reusable by 2025.
It’s a curated collection of new and existing products from brands you love (like Burt’s Bees, PLUS, Pacifica and soon, guest faves such as Grove Co. and Everspring) designed to reduce waste and make it easier to shop sustainably.
Target Zero is an important step, alongside initiatives like Target Clean and their expansion of diverse brands, as the company aims “to be the market leader for creating and curating inclusive, sustainable brands and experiences”.
Will millennials save the last mile ?
Metapack, a delivery management system provider put out its 2022 benchmark about e-commerce and it has great insights about sustainability.
The first major insight is that the carbon footprint of the delivery still is a minor concern for customers (6,9% of the priorities) even if it is rising.
Cost, speed and convenience still are the major pillars of delivery, by far.
And if you take a closer look to what Metapack calls the “digital shifters” (people who permanently shifted to online shopping, especially thanks to Covid), their concern about the carbon footprint of the delivery is even smaller as they mostly focus on speed.
If still low, the concern about sustainability is emerging as people get more aware of climate challenges.
In the last mile delivery, customers are mainly not willing to pay an extra cost for it : they prefer to have an option for longer delivery time. One third of the panel is ready to switch to collection : get their delivery out of home in concentrating points.
These two takeaways make sense as they both have a significant impact on the delivery carbon footprint.
If you look deeper, you’ll see that younger people are twice as much willing to pay a higher cost for a sustainable delivery than people aged 55+. That might be a good insight to see that people more aware of sustainability matters already know that it might cost more in the future if delivery companies integrate the carbon footprint in their cost.
Last insight : a focus on out of home delivery.
Again, with no surprise, customers would choose this option mostly if it is cheaper than at home, or if it is faster. They would choose it if it has a benefit for the environment in only one out of five times.
This study has great insights to me : it shows how things really are in the minds of customers : yes, they know that sustainability is a problem, they might have an idea that delivery is bad for the environment (which, by the way, is a false claim). But their major concerns when they buy online are price and speed.
Up to retailers and delivery managers to get in the dance and find clever solutions that combine all that matters. Because, yes, speed is important but we must take carbon footprint concerns into account now if we want to live in a livable planet in the near future.
Source : Metapack
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