[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/10\/08\/sustainable-retail-strategy\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/10\/08\/sustainable-retail-strategy\/","headline":"Sustainable retail: Better for the planet and the bottom line","name":"Sustainable retail: Better for the planet and the bottom line","description":"Sustainable retail has gone mainstream as younger generations become market forces. Going green not only helps the environment, but boosts profits.","datePublished":"2021-10-08","dateModified":"2021-11-04","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/krupa-singampalli\/#Person","name":"Krupa Singampalli","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/krupa-singampalli\/","identifier":585,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/82c522ebbd71fd6a9d16e214ed7ca782af5a1e87771d237950f248b155de21a5?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/82c522ebbd71fd6a9d16e214ed7ca782af5a1e87771d237950f248b155de21a5?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/10\/Sustainable-retail-ftr.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/10\/Sustainable-retail-ftr.png","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/10\/08\/sustainable-retail-strategy\/","video":[{"@context":"http:\/\/schema.org\/","@type":"VideoObject","@id":"https:\/\/www.youtube.com\/watch?v=5MqGOhZXNvE#VideoObject","contentUrl":"https:\/\/www.youtube.com\/watch?v=5MqGOhZXNvE","name":"Circular E-Commerce: Embracing Sustainability in E-Commerce","description":"Digital technology and environmental sustainability may seem mutually exclusive, but in reality they can often be mutually reinforcing. In this episode of Keeping Up with E-Commerce, our experts will delve into how e-commerce brands can up-level their most sustainable practices and still increase revenue. \n\nJoin Sven Rittau, Dan Gingiss, Krupa Singampalli for this episode of our LinkedIn Live series, Keeping Up With E-Commerce. We are bringing together external e-commerce influencers with SAP experts who are committed to bringing you real, unscripted discussions on the latest e-commerce topics. For thought leadership on the topic of e-commerce, learn more here: http:\/\/sap.to\/6053JBfzL \n\n#sapupscalecommerce #sapupscale #ecommerce #commerce #cx","thumbnailUrl":["https:\/\/i.ytimg.com\/vi\/5MqGOhZXNvE\/default.jpg","https:\/\/i.ytimg.com\/vi\/5MqGOhZXNvE\/mqdefault.jpg","https:\/\/i.ytimg.com\/vi\/5MqGOhZXNvE\/hqdefault.jpg","https:\/\/i.ytimg.com\/vi\/5MqGOhZXNvE\/sddefault.jpg","https:\/\/i.ytimg.com\/vi\/5MqGOhZXNvE\/maxresdefault.jpg"],"uploadDate":"2021-09-27T19:46:35+00:00","duration":"PT26M2S","embedUrl":"https:\/\/www.youtube.com\/embed\/5MqGOhZXNvE","publisher":{"@type":"Organization","@id":"https:\/\/www.youtube.com\/channel\/UCJ-J9ws028X7ASicv0-r8dQ#Organization","url":"https:\/\/www.youtube.com\/channel\/UCJ-J9ws028X7ASicv0-r8dQ","name":"SAP Customer Experience","description":"The official SAP Customer Experience (SAP CX) YouTube channel.  \n\nCheck out product demos, executive presentations, great customer experiences, customer and partner stories and more!\n\nSAP privacy statement for followers: www.sap.com\/sps \n\nFor more information from SAP Customer Experience or to have someone from SAP Customer Experience contact you please go to: cx.sap.com","logo":{"url":"https:\/\/yt3.ggpht.com\/Xh1UKLBf2zMxSEnvtd-X9C7nv3-dc9FCbfDkMhrO6DSRQYKMH_rdLPYabMMsf9FRYSmNTbVNow=s800-c-k-c0x00ffffff-no-rj","width":800,"height":800,"@type":"ImageObject","@id":"https:\/\/www.youtube.com\/watch?v=5MqGOhZXNvE#VideoObject_publisher_logo_ImageObject"}},"potentialAction":{"@type":"SeekToAction","@id":"https:\/\/www.youtube.com\/watch?v=5MqGOhZXNvE#VideoObject_potentialAction","target":"https:\/\/www.youtube.com\/watch?v=5MqGOhZXNvE&t={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"},"interactionStatistic":[[{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=5MqGOhZXNvE#VideoObject_interactionStatistic_WatchAction","interactionType":{"@type":"WatchAction"},"userInteractionCount":635}],{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=5MqGOhZXNvE#VideoObject_interactionStatistic_LikeAction","interactionType":{"@type":"LikeAction"},"userInteractionCount":8}]},null],"about":["B2C Commerce",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/","name":"Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Commerce","http:\/\/www.wikidata.org\/entity\/Q26643"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/sap-customer-experience-live\/commerce-live\/","name":"Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Commerce","http:\/\/www.wikidata.org\/entity\/Q26643"]},"Direct to consumer: D2C",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/e-commerce-solution\/","name":"E-Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/E-commerce","http:\/\/www.wikidata.org\/entity\/Q484847"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/e-commerce-solution\/e-commerce-general\/","name":"E-Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/E-commerce","http:\/\/www.wikidata.org\/entity\/Q484847"]},"Future of Grocery Retail","Retail Trends, Data, News",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/sustainability\/","name":"Sustainability","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Sustainability","http:\/\/www.wikidata.org\/entity\/Q219416"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/sustainability-in-business\/","name":"Sustainability in Business","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Sustainable_business"]}],"wordCount":884,"keywords":["Circular Economy","Sustainable Commerce","Sustainable Retail"],"articleBody":"Sustainable retail has recently transitioned from an \u201cif\u201d to a \u201cwhen\u201d and \u201chow.\u201d More and more, consumers expect their favorite brands to take a stand for what they believe is right and sustainability is a priority. Customers and investors alike want to support a brand that puts humanity and the environment first.This shift didn\u2019t happen overnight; it came about alongside generational shifts. For example, as Gen Z gains more spending power and millennials solidify their position as leaders in the market, sustainability and ethical practices are becoming core to retail strategy.The newer generations of consumers are very passionate about these topics and are willing to pay more for greener practices.      Give people what they want: A sustainable business model                Consumers, investors, and partners are increasingly making decisions about your company based on a sustainable business model. Here, we examine the rise of sustainability as a business value.      Gen Z leads the charge for sustainable retailHalf of Gen Z shoppers said they are willing to pay more for a sustainable product, but that number keeps dropping as older generations were surveyed, decreasing closer to 20% for Baby Boomers.Sustainable retail is more critical for brands that primarily target younger generations. There are three different rationales for these brands:It’s simply the right thing to do and will help future-proof their businessIt’s important to their customersIt gives them a competitive advantage that will compound over timeBrands that focus on sustainability now are setting themselves up for future success. Building in sustainability or elements of the circular economy open up huge opportunities to differentiate their business and become a consumer favorite.This content is hosted by a third party ( www.youtube.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowExample of sustainability in retail: Levi’s and slow fashionOne brand getting this right is Levi\u2019s. In the spring of 2021, the brand launched a campaign titled \u201cBuy Better. Wear Longer.\u201d It’s the antithesis of fast fashion, when consumers buy vast quantities of lower quality goods that they throw out quickly.The campaign notes that global clothing consumption has doubled in the last 15 years and urges consumers to buy fewer, higher quality goods. This strategy flies in the face of the normal retail strategy that encourages as many purchases from shoppers as possible.While Levi\u2019s might be encouraging less purchases over time, they’re likely to bring on loyal customers with higher average order values. This is thanks to higher product quality, which can help boost long-term loyalty and potentially even word-of-mouth advertising.      Green is the new pink: Sustainable fashion will rule the runway                Consumers are changing the face of the fashion industry via their demands for sustainability. Discover four ways retailers can rule the ethical runway.      Ecofriendly retail, built from the ground upIn theory, this all sounds great for every brand, but cost is a concern. The concept of the \u201cdigital native\u201d brand has been popularized over the last several years, and now there’s the concept of the \u201csustainable native.” For sustainability to really work for a brand and not disrupt established supply chains or other business practices, sustainability needs to be built into the business model from day one.This is much easier than having to switch production practices and find new vendors when everything is already established.Sustainability practices have to align with profit and revenue in order to be more widely adopted in the retail community. Retailers like Amazon that handle massive orders every day offer the ability to batch packages instead of sending multiple packages to complete the order.After all, being \u201cthe everything store\u201d doesn\u2019t mean that all of those products are necessarily in the same warehouse. Batching orders slows down the shipping time a bit, but it also cuts down on emissions and waste from multiple boxes and deliveries.      Saving the world in 3 steps: Creating green e-commerce                E-commerce is not very eco. In fact, it\u2019s frequently the opposite. Learn how you can do your part and create green e-commerce in three steps.      Sustainable retail: Rewards for recyclingEstablished brands must look for ways to be greener without raising prices higher than their customer base is willing to pay. One option is offering an incentive for batch orders, like a small discount or free gift.Another way to take action on sustainability is to reward shoppers for recycling products they no longer want. Brands like Apple and Madewell have done this for years, offering discounts on new products when an old one is given back to the retailer.This way, they can recycle or donate the products, helping the consumer feel good about not contributing to unnecessary waste and extending the product lifecycle. The Madewell recycling program boasts that it’s saved 548 tons of waste from landfills from the 1,096,265 (and counting!) pairs of jeans recycled to date.E-commerce and sustainability are much more closely linked than it may seem, in fact they can be mutually reinforcing. Brands can up-level their most sustainable practices and still increase revenue by making \u201cgoing green\u201d part of their key value propositions.  Giants don’t leave (carbon) footprints.Future-proof your business \u2013and the world.Get your free trial\u00a0HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"10","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/10\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"08","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/10\/\/08\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Sustainable retail: Better for the planet and the bottom line","item":"https:\/\/www.the-future-of-commerce.com\/2021\/10\/08\/sustainable-retail-strategy\/#breadcrumbitem"}]}]