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Green Retailing

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Retail has a dark history of contributing to the world water crisis.

An unfortunate fact is that retail is the second largest industry in mass waste and
pollution. Synthetic materials are one of the most significant pollutants in the
industry.

Retailers are sources of environmental pollution, 80–90% of which is ultimately due to the processes that retailers
set in motion by their orders for the products they carry and sell.

Billions of tons of plastics dumped in oceans also lead to the


death of millions of children and animals every year.

Water and air pollution are the main actors.

Major Industries that Of the total industries:


contribute to pollution: 1. 77 % - water pollution
1. Energy
2. Transport 2. 15 % - air pollution
3. Agriculture
4. Fashion Industry 3. 8 % - both air and water
5. Food Retail pollution.
Green
Retailing
Retail Management
Presentation
Green Retailing
Green Retailing (GR) refers to the management approach that pursues environmental protection to improve
the retail value chain through eliminating waste, increasing efficiency, and reducing costs.

The two major drivers that lead


retailers to consider eco-friendly
practices are:
1. Consumers are becoming
aware of eco-friendly goods and
services and are willing to spend
extra money on green and organic
products. This is sometimes seen
as an opportunity to expand their
offerings.
2. Retailers have realized that
having an eco-friendly brand will
set them apart from their
competitors in the crowded
market.
Going green can give off the best of both worlds such as it will increase consumer demand and reduce
your business cost. It also delivers business sustainability.
In the beginning years of green retailing, retailers focused on selling organic products
but
nowadays retailers are emphasizing not only selling green products but also adopting green practices in
stores.
Each company is leading its way in a specific field, pioneering specific initiatives which will define the future
of the retail landscape.

A large part of the lives of today’s consumers has become a


digitized form of emails and instant messages.
Leading companies are working to provide customers with
an easy shopping experience using smart technologies.
Green Retailing

Advantages Disadvantage

1. Increased revenue 1. Takes more time

2. Tax incentives 2. Data risks

3. Good PR 3. Costly Green


Certifications
4. Conservation of
natural resources 4. Greenwashing
7Ps Of Retail Management

A place where people, aim to help


make sustainable living habitual.
• Hygiene Factors
• Differentiating Factors
• Segment
• Proportion

You purchase a socially or


environmentally preferable
offering primarily because
you want the solution that
product or service provides,
but you also want it with or
People are our
without a specific attribute
most valuable
(e.g. health, safety, ethical, asset and serve
specific ingredients, guilt as brand
reduction, financial savings, ambassadors at
tax advantages, etc.) as an all times.
added benefit.
Green Retailing Practices by retailers

Countries that Reasons for Adopting


practice green Green Retailing:
Retailing:
1. Government
1. Sweden Pressure
2. Switzerland 2. Competitive
3. Norway Pressure
4. Japan 3. Cost or Profit issues
5. Finland 4. Economical Business
6. Denmark Model
7. New Zealand 5. Employee and
8. Germany Industry Goodwill
9. Canada 6. Consumer
10. Netherlands Friendliness
Article: Sustainability in India’s Retail

Transportation Storage Store Management Energy Management

Important areas to implement sustainability


The process of designing, sourcing, producing, and distributing products in global
markets plays a crucial role.
As these activities consume a major share of the resources and have a huge impact on
the environment.

Hence, Supply chain management activities are a primary factor in promoting environmental sustainability.
The main elements of a supply chain include purchasing, operations, distribution, reverse logistics, and
integration.
Robust supply chain management is a great advantage for global retail giants.
Source: https://www.researchgate.net/publication/259921418_Sustainability_in_India's_Retail
In India, the SCM is in a nascent stage with the exception of a few retailers.
Some retailers have adopted cutting–edge technology to generate operational efficiency, reduce costs, and
improve customer experience.

Energy For Example:


Consumption
across these three The physical retail locations account for a
primary huge percentage of retailers’ energy
categories in the consumption.
retail industry In a typical 50,000 sqft retail building, lighting,
heating, ventilation, and air conditioning alone
Stores account for 75 percent of total energy use.
On average, a retail store in a developed
Distribution economy consumes 14.3 kWh per square foot
Centers and spends 1.47 USD per square foot on
energy, depending on the price of energy.
Transportation
Challenges in SCM in India:

1. Indian retail is heterogeneous. There are regional variances in demand patterns.

2. Indian consumers are value-conscious and demand lower prices. Hence, the retailers
have to be cost-efficient.

3. There an is absence a of strong infrastructure system and it is a great challenge to reach


consumers in remote areas.

4. Lack of sufficient and suitable cold chains leads to heavy wastage mainly of farm
produce.

5. Supply chain expertise and manpower availability are the major challenges of the retail
sector.

6. Supply chains in India involve multiple intermediaries, which leads to high lead times,
high costs, and huge wastage.

7. Vendor-managed inventory and integration with suppliers are inadequate.


Reliance Retail is an Indian retail company and a subsidiary of
Reliance Industries Limited.
Founded in 2006, it is the largest retailer in India in terms of
revenue. Its retail outlets offer foods, groceries, apparel, footwear,
toys, home improvement products, electronic goods, and farm
implements and inputs. Apart from physical outlets, the company
also sells products on its e-commerce channels.

Green Retailing Practices


1. Creating Value from Waste
2. Implementation of EMS (Environmental Management System)
3. Making Bags and Receipts Optional
Approach to Sustainability:
1. Waste Management - Company has
stopped using single-use plastic and
formulated a policy under EPR to comply
with plastic waste management rules.

2. Prevent Pollution - The Company


made a start by installing solar panels in
Spencer's Retail is an Indian chain of some of our stores helping to reduce the
retail stores headquartered in Kolkata, carbon footprint.
spreading across 35 cities with more
than 120 stores. 3. Climate Change - Company has
significantly increased the share of
It began its operations as a retail chain electronic transactions vs physical paper-
in the early 1990s, and it expanded based transactions.
rapidly between 2006 and 2009.
4. Energy Efficiency - To conserve energy
Two formats of stores: Company has installed energy-efficient
1. Convenience stores called Spencer’s fittings, automatic lighting, water taps &
2. Hypermarkets called Spencer’s Hyper air dryers.
Walmart is an American multinational retail corporation headquartered
in Arkansas with more than 4000 stores and 1.5 million employees in the
United States alone.
Walmart was established on July 2, 1962.

Talking about their green retailing strategy there are mainly 3 aspects they focus on.

1. Zero Carbon Emissions (Project Gigaton):


 
 Walmart’s aim in 2040 is to produce zero carbon emissions by the year 2040. They are doing so by the following-
 
 Harvesting enough wind, solar and other energy resources to power their facilities with 100% renewable energy by 2035.
Currently, they power around 36% of their operations using renewable energy.
 
 Zeroing out emissions from their transport vehicles like trucks and lorries by buying electric power units saving 75 million
dollars in fuel cost and almost 4,00,000 tons of Co2 pollution in one year alone.
 
 Switching to low-impact refrigerators and other electronic equipment in their stores and distribution centers.
2. Limit Waste-
 
 As of 2020 Walmart has reduced their landfill waste by 81% as well as donated
millions of pounds of food in the U.S alone.
 During 2020, Walmart recycled for than 375 million pounds of plastic.
 Their aim is to use 100% recyclable, reusable, or industrially compostable packaging by 2025.
 They are also constantly working with suppliers to reduce product and packaging waste and help preserve natural
resources.
 

3. A Focus on Nature-

- They aim to preserve the forests by sourcing


palm oil, beef, paper, and timber 100%
deforestation-free by 2025.
- Preserving at least one acre of natural habitat
for every acre of land used for industrial
purposes in the United States.
- Adopting regenerative agriculture and forest
restoration practices.
 
GREEN RETAILING
Myntra for Earth

Myntra is a major Indian  Myntra for Earth, a one of its kind theme store dedicated especially to
fashion e-commerce company sustainable fashion alternatives.
headquartered in Bengaluru,  It was Launched in October 2020.
Karnataka, India. The current  Myntra for Earth offers over 5500 sustainable styles from 70
CEO of the company is Nandita brands including trendy dresses, cool kicks, beautiful ethnic for festivals and
Sinha. even effective skincare, for the customers to choose from.
 The effort focuses on bringing together brands that incorporate more
handloom and handcrafted items and use organic, natural-dyed, recyclable,
It operated on a B2B business eco-friendly, vegan, and cruelty-free material.
model during its initial days.  The long list of brands in this campaign includes top brands like H&M, Mango,
Myntra sold on-demand Adidas, Fabindia, Unnati Silks, Bharatsthali, Pothys,  and other.
personalized gift items.
 The customers can also find Myntra’s own in-house brands with earth-
conscious collections like Taavi, Roadster and Ether.
Myntra with LENZING™ ECOVERO™

 Taking the earth-friendly approach a step further, in 2020 Myntra joined hands with
LENZING™ ECOVERO™, an innovative fibre brand that derives fibre from certified
renewable wood sources using an eco-responsible production process that meets high
environmental standards. 
  This branded special variety of viscose fibre has been awarded the EU Ecolabel, a
certification given only to those products and services meeting extremely stringent
requirements of sustainability.
Paper is the way to go

 Bubble wrap and shrink wraps are among the most popular packaging materials used
across the industry to secure the material being shipped to the customers. 
  In line with the sustainability roadmap, one of Myntra’s latest initiatives has been to
use eco-friendly recycled paper shreds to replace the bubble wrap and air-filled plastic
packing pouches for the packaging of products. 
 All the other plastic that they cannot avoid using, they recycle.
Solar Panels – Bid to reduce carbon footprint

• To reduce carbon footprint, two of the largest


fulfilment centres of Myntra, one at Bhiwandi
and the other at Bilaspur, are now equipped
with solar panels, leading to drastic reductions
in the dependency on energy from non-
renewable sources.

• The power generated from these panels is more


than enough to cover our usage requirements,
allowing us to export the rest of the energy back
 In packaging, Myntra has eliminated
to the power grid.
1500 tonnes of plastic from entering
landfills in 2021 alone. The plan is to
• With the help of around 5500 solar panels, they double this elimination this financial
are generating 1.75 megawatts of power at the year.
moment and reducing our carbon footprint by
2600 tonnes. It’s equivalent to planting 35000 “Sustainability is not just another
trees.  buzzword for us- it is a way of life
and it is here to stay”.
Article: Green Retailing: an Indian Experience

Nine Crore Groups of Green Retail


Practices

1. Distinctness of green products for their benefits and appearance


2. Promoting sustainable business practices
3. Use of environmental keywords
4. Promotion for Awareness
5. Promotion offers for sale
6. Ensuring availability and visibility of green products in retail stores
7. Approval for environmental claims, verifies the environmental information related to
green products and their packaging.
8. Environmental friendly appeal of the store.
9. Consumer involvement with green products and sustainability-related activities.

Source: https://www.researchgate.net/publication/272158093_Greening_retail_an_Indian_experience
CASELET 1:
1. Distinctness of green products for their
It describes green retailing initiatives of a single-brand retail outlet for
benefits and appearance -
grains, natural spices, stationary, beauty products, idols, bags, home décor,
and food products. The retailer ensures that the products are available most 2. Promoting sustainable business practices
of the time in the store and are 100 percent organic (organic honey and 3. Use of environmental keywords
organic dry fruits, etc.), non-greasy, silicone-free, alcohol-free, paraben-
4. Promotion for Awareness
free, light in weight, and are produced without using chemicals, fertilizers,
and pesticides (for food products), meet ethical standards (no child labour, 5. Promotion offers for sale
not tested on animals, etc.) and are awarded eco-labels (such as ECOCERT,
6. Ensuring availability and visibility of
etc.). As well, the packaging of the sourced products is ensured to have
green products in retail stores
used sustainable raw materials and to be environmentally safe, and
recyclable. The retailer offers to carry bags to consumers made of 7. Approval for environmental claims,
environmentally friendly materials (paper, etc). Together with this, the verifies the environmental information
retailer is committed to promoting the “reduce-reuse-recycle” concept and related to green products and their
discouraging child labour, product testing on animals, and using non-toxic packaging.
substances in products. It also gives a definite percentage of business profit 8. Environmental friendly appeal of the
to the non-government organizations (NGOs) who are working for store.
community development for women empowerment and children. These
9. Consumer involvement with green
commitments and activities are communicated to consumers using text-
products and sustainability-related
based banners displayed in the store throughout the year.
activities.
Conclusion
Retailers need to incorporate the best global practices to save the planet, to make it a better place
to live for generations to come.
It is needless to mention that a major responsibility lies with the Government not only in enacting
legislation towards “green” initiatives but also in ensuring its effective implementation, which
no doubt can be
achieved only with the cooperation of the various stakeholders.
Thank You

Kuhu – AC05
Ishaan – AC06
Rahul – AC011
Neel – AC19
Sumedha – AC44
Shreya – AC47
Yashasvi – AC50

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