As global attention to environmental issues grows, brands and retailers that take a stance on sustainability across their entire supply chain will win the hearts and wallets of consumers ahead of those that simply concentrate on the downwards race to meet ever-faster delivery times.
Companies are addressing the inherent redundancy in every aspect of the supply chain, from improved forecasting of demand to drive accurate product manufacturing and reduce waste to recyclable and smart packaging, as well as delivery efficiency versus speed.
Implementing Artificial Intelligence
New AI technology is being used by companies such as fashion giant H&M which have historically faced issues with sustainability, specifically in regard to understanding consumer demand. H&M Head of Advanced Analytics Arti Zeighami recently spoke at NRF on how this technology assists the chain in making more sustainable business decisions by better aligning product supply and demand, in turn reducing waste. As consumers educate themselves on sustainability we will see more companies utilizing technology like AI.
Reshaping The Idea Of ‘Ownership’
The trend toward sustainability is reshaping how people think about their products and possessions. That is why we are seeing recommerce develop as a business model, whether consumers are renting as they do with Rent the Runway or buying from online consignment stores like The RealReal. Companies like Rent the Runway that are spearheading the apparel rental industry have inspired countless others, changing the nature of how consumers think about the concept of ownership versus rental. This trend is expanding quickly to established brands and retailers.
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The North Face has launched its own recommerce business — The North Face Renewed — enabling its products to have an extended lifespan. Other retailers are responding fast as well: in late 2019, Selfridges in the UK established high-end second-hand clothing and accessory boutiques in its stores. In fact, the second-hand luxury shopping marketing is expected to grow 12% year on year, compared to just 3% growth for the luxury market overall.
The Extinction Rebellion environmental protests at Fashion Week around the world are getting more attention and driving change with established brands, some of which have begun to publish an annual environmental P&L report. The movement also is encouraging new brands and innovative new materials to emerge, such as the recycled fishing nets turned into swimwear fabric by the Italian company Econyl.
Seeing Customization Production Delays As Positive
The popularity of customized products continues to rise, enabling manufacture-to-order systems for brands and reducing wastage and the environmental impact of inventory storage. These offerings also increase consumer tolerance for longer delivery times, as there is an understanding that a product made just for you takes more time to produce.
The appeal of immediate delivery is hard to deny, and for those items where immediacy is important (such as grocery and household goods), companies like Amazon are able to meet these needs by using their local stores, such as Whole Foods, to fulfill orders. Such strategies also reduce the environmental impact of using a centralized warehouse and delivery system.
Consumer expectations and demands, as always, will set the pace here. The trend toward a serious attempt by consumers to shop responsibly is undeniable, and will trump short-term enjoyment of the immediate gratification/shamefaced guilt of same-day delivery and the delight of owning a brand-new product. It is undeniable that shopping is not just about necessity but also personal expression and fun; however, it is exciting to see these new, more sustainable ways to shop quickly emerging.
As Chief Client Success Officer, Vanessa Cartwright is responsible for client success and strategic direction at Astound Commerce, ensuring that the company provides the very best partnership and solutions to all of its clients while managing Astound’s business and operations. Prior to becoming CCSO, Cartwright was the CEO for Fluid for six years, managing client relationships and the delivery of services and solutions. She has deep experience in retail and e-Commerce as well as financial services, telecommunications, publishing and CPG. Previously, Cartwright was General Manager (NY) and SVP Senior Client Partner for Blast Radius. She has also held senior leadership positions within RMG Connect/J Walter (Canada) and Rapp Collins (UK) and carries with her a deep digital background. She has a BA in Russian and English, and a postgraduate Chartered Institute of Marketing.
