Retail AI/ML & Data Science
Defining AI & ML- Simplified
Defining AI & ML- Simplified By Fernando Monteiro, SVP EMEA The two most common technology acronyms you may find yourself reading and talking about
April 19, 2022
Sustainability, a topic that has long been discussed, is becoming one of the most important strategic priorities for retailers.
Consumers over the years have become more and more conscious of their environmental footprint, and are now expecting retailers to adopt the same mindset. This growing responsibility has forced retailers to rethink how they produce and deliver their products, a term is now known as Green Retailing.
Throughout this blog, discover what green retailing is, why retailers should adopt this strategy, and the positive impact advanced technology can have on sustainable strategies.
We have seen a rise in environmental activists from all across the globe– whether they are young climate justice activists like Greta Thunberg, green politicians, celebrated actors like Leonardo DiCaprio, or even social media influencers, their voices have made an impact on environmental awareness such as overconsumption, fast fashion, and greenwashing.
These activists, along with many nonprofit organizations, have influenced consumers to shop differently. And as we know…whenever there is a shift in consumer behavior, retailers are encouraged to act on it.
However, consumers have been making bold efforts to protect the environment since 2017, and many retailers have made little to no changes. What retailers have failed to see is the positive impact it can have on their business.
According to a study conducted by Cone Communications:
Green retail strategies aren’t limited to just packaging and distribution. It has the potential to impact all areas of the retail business including manufacturing, supply chain management, promotional and marketing strategies, and even consumer experience.
Here are different ways retailers can implement green retail strategies:
While these initiatives may require substantial investment and transition, it’s crucial to keep in mind that the concept of sustainability can also be achieved through more manageable, smaller initiatives.
The important thing is that each retail brand recognizes its obligation to develop an environmentally friendly strategy that works for its company and enables them to advance both now and in the future.
Before you go ahead and implement green retail strategies, it’s important to avoid greenwashing.
Companies that greenwash present themselves (intentionally or unintentionally) as greener or more sustainable than they truly are. They can achieve this by making unsupported, untrue, or erroneous claims. Or by simply omitting important details and focusing on the meager sustainable actions they take—like using environmentally friendly packaging or initiating a sustainable line while still overproducing—instead of the larger, more important issues.
According to a recent survey from Genomatica, Customers are alert for “greenwashing” in the retail sector, particularly in the clothing market:
How advanced technology can improve sustainability efforts:
Today, there are many solution providers that serve to capture the most significant financial opportunity for retailers, whether they focus within supply chain, merchandising, operations, etc. Take for instance, within the merchandising space there is a need for effective promotion management.
A promotion management solution provides data-driven insights by processing all the data, running forecasts on different promotion attributes, and concentrating on the right combination of promotion attributes to meet the desired outcomes. With the amount of clarity a promotion solution can provide, retailers can expect to optimize supply flow, adjust order processing, and cut down on waste.
At Cognira, our PromoAI Solution helps retailers reduce up to 25% of their waste and save on inventory.
Retailers can contribute to a greener planet and will likely see results in their key performance metrics that are optimized as well (KPIs). The outcomes of the green retailing measures could be more sales, healthier margins, lower inventory costs, and more automation.
Furthermore, today’s consumers demand more from their favorite brands than just high-quality goods; many of them want to see these businesses stand with them in unison for a future they trust in.
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