Article
For retailers, it's not easy being green
Retailers need green initiatives to meet new customer expectations.
May 4, 2008
"It takes a lot of work to buy green," said Kathleen Draper, a self-described environmentally conscious consumer. In order to find products that are free of toxins and chemicals, Draper invests time researching products online and then searches for a nearby retailer that carries it. But even today, in an age of increasing environmental awareness, Draper is frustrated by the lack of available products and well-informed retailers, leading her to do much of her buying online.
According to the Green Gauge Report produced by Roper Starch Worldwide, the most proactively green Americans, called True Blue Greens, like Draper, currently make up 30 percent of the entire adult population. Right behind those folks in terms of zealousness are Green Back Greens, which account for 10 percent of the population.
Of particular interest, however, is the growth in these two categories in the last decade. In 1997, True Blue Greens only accounted for 10 percent of the population, while Green Back Greens, were only 5 percent. From 15 percent of the population in 1997 to 40 percent in 2007 hints of a major shift that is underway that retailers will want to follow.
Carolyn Allen, publisher of California Green Solutions, is witnessing it and asserts that those percentages will likely grow.
"We're in the throes of significant long-term change when it comes to lifestyle," she said. These changes are driven by a new measure of success, she said - health. And with a new focus on healthful living comes increasing demand for education, information, and product solutions.
Retailers that are able to educate, inform, and sell eco-friendly products will be at the leading edge of this new movement.
New consumer expectations
Retailers need to recognize that consumers are evaluating them with new scorecards. Jeff Wuorio and his family try to live a green lifestyle, from going out of their way to buy from grocers that use paper bags instead of plastic, to drinking fair trade coffee, to eschewing restaurants that use plastic utensils instead of the washable metal variety. Evaluating retailers on their eco-friendliness "is always an element of what we do," he said, and how they buy.
Retailers that recognize consumers' interest in being environmentally responsible are reaping the rewards. One such store is Counter Culture, a vintage fashion, art, and lifestyle retailer. In August 2007, owner Monika Wood rolled out a new initiative designed to encourage shoppers to donate their used clothing at the store, to help reduce the two quadrillion pounds of used clothing and textiles Americans add to landfills each year.
The two-month program, titled Project Juxtaposition, was expanded into a year-round effort due to consumer enthusiasm. Wood explains that customers want to participate, to feel that they're making a difference, but they also "want what's easy" - meaning don't ask them to go too far out of their way. "Keep it simple," she strongly advises when designing such initiatives.
However, consumers - even green consumers - are inconsistent in their spending. They may be staunch supports of green transport or organic foods but not give a second thought to energy-efficient light bulbs or green apparel, explains Allen. "We educate ourselves in one sector [product category] at a time," she said.
Education yields sales
Just as consumers are dipping their toes in the green water, so, too, are retailers large and small. In an effort to woo the growing legions of green consumers, retailers are introducing new programs and campaigns designed to attract attention from the environmentally conscious shopper set.
For example, most grocery stores, and even major retailers like Target, now sell reusable fabric tote bags to encourage shoppers to forego the disposable plastic bag (50-80 million of which we use annually). Whole Foods recently stopped offering plastic bags altogether in its stores, instead offering customers recycled paper or reusable bags. Other grocers, such as Aldi charge customers for either paper or plastic handle bags, to reduce expenses and encourage shoppers to bring their own.
Other stores are stocking up on environmentally friendly products to meet the growing interest of shoppers like Draper. Even Wal-Mart has rolled out an Earth friendly-branded line of organic apparel, eco-friendly garden and patio products and energy-efficient appliances. Home Depot has debuted a no-VOC line of paints in 65 colors, an all-natural insect repellant, as well as boosting its selection of energy-efficient products. Its competitor, Lowe's, developed a line of organic gardening supplies safe for children and pets.
"The challenge that all retailers have, is that consumers perceive that green products are more expensive, and most consumers are not willing to spend more for green products," said Gary Hillery, owner of The Green Path Company.
They are also wary of "greenwashing," where retailers misuse the green lingo to claim environmental friendliness, when, in fact, they are not.
However, education is frequently the key to changing behavior. Allen recommends creating display vignettes that help consumers identify green products as well as learn how they can be used. She offers the example of a display that educates about eco-friendly products for cleaning the bathroom: within a display that contains a toilet and sink, you could place a variety of products, from drain cleaners to floor cleaners to toilet cleaners, recycled toilet paper, and even LED lighting.
Other tactics for informing and selling to environmentally conscious consumers include shelf talkers, she suggests, with facts about how to reduce your carbon footprint. "Or offer comparisons between products," she said, "to show the total cost over, say, 10 years."
While you're communicating to customers the benefits of the products you sell, also let them know about other - behind-the-scenes - ways you are helping the environment. This might include buying green power, changing the packaging your products are shipped or sold in, or donating a percent of profits to support fair trade, for example. Since green consumers like to support green retailers, make sure they know you are one of them.
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