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Advertising Express Magazine:
Green Retailing : An Emerging Concept in Organized Retail Sector
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With the growing realization about the ill-effects of global warming, customers across the globe are urging the companies to come up with eco-friendly alternatives to manufacturing processes. In response, the retailing world has taken the onus to provide eco-friendly products to customers in order to satisfy them. The retailers have also discovered that these `green initiatives' are inturn leading them to identify cost-effective ways of doing their businesses. The article elaborates on the green retailing process and cites exampls of retailers going `green'.

 
 
 

Of late there has been a growing concern about global warming across the world due to its increasing effects on the climate, atmospheric temperature, on melting of glaciers and the rise in sea levels. Mounting concern about environmental damage is stimulating more and more customers to buy products that are eco-friendly. They are expecting manufacturers and retailers to offer them `greener' alternatives in this context. Retail, which is an important link between consumers and manufacturers, has been forced to sincerely consider the rising demand for eco-friendly products.

Retailers who have taken the `green initiatives' have discovered that achieving environmental sustainability is cost-effective as it saves a business from producing excess waste material which is nothing but cost. Retailers have been found to be in a position where they have shaped consumer choices for eco-friendly products and have made consumers environmentally conscious.

There are plenty of examples of international retailers who have adopted the `green initiatives' zealously. Some among them are Tesco, Sainsbury, Home Depot, Marks & Spencer and Wal-Mart. In India, manufacturers and retailers like Birla Cellulose, ITC, Reliance and Cartridge World have taken the initiative to provide customers with environment-friendly products.

There are three distinct steps involved in executing a green initiative by a retailer. A holistic and customer-centric approach is the key to success for a retailer as far as green retailing is concerned.

Any green initiative that is adopted by a retailer needs to fit into its overall business strategy and its core business philosophy else it is bound to be a failure. As a competitive move, many retailers often declare their intentions of reducing product packaging or becoming carbon neutral before a certain date but then they are unable to implement their plans as their green aspirations are not in sync with their overall business strategy. This leads to erosion of consumer confidence and brand credibility for a retailer. Any green initiative has to be in tune with the retailer's positioning strategy. For example, international organic grocery retailer, Whole Foods' brand positioning is "whole foods, whole people, whole planet." Such a positioning gives customers the confidence of purchasing items that are environmentally-friendly. In order to strengthen the green proposition, Whole Foods' management and employees are committed to promote the green alternative. Whole Foods make it a point to even recruit employees who have the passion for organic food and believe in eco-friendly activities. IKEA, a Swedish furniture and home furnishings retailer's positioning statement is "to create a better everyday life for the majority of people". This allows the addition of environment sustainability mission so that both customers and employees can make efforts to reduce the waste.

 
 
 

Advertising Express Magazine, Green Retailing, Retail Sector, Global Warming, Environmental Sustainability, Birla Cellulose, ITC, Compact Fluorescent Light, CFL, Viscose Staple Fiber, VSF, CFL Bulbs, Hallmark Cards, Strategic Marketing, Aditya Birla Group Company.