Sustainability - Top 5 Trends Impacting Retail in 2023
According to a Deloitte survey, 55% of consumers recently purchased a sustainable product or service. Retailers are attempting to lessen their environmental effects in response to rising demand for eco-friendly products. They are attempting to mitigate the effects of climate change, decrease waste, and lower their carbon footprint.
Eco-friendly Workplaces: Brands are assessing how their workplaces run and the impact on their communities in order to comply with sustainability laws. Retailers such as IKEA and Prada are increasingly embracing the Leadership in Energy and Environmental Design (LEED) standard, a globally recognised third-party metric.
Environmentally Friendly Shipping and Delivery Options: During the epidemic, internet sales increased, as did carbon emissions from delivery vehicles. This expansion has compelled business leaders to seek out more environmentally friendly distribution ways, making it a top sustainability trend in 2023. To avoid using vehicles that run on fossil fuel, for the last mile - the final part of the shipping and delivery process - brands are switching to electric vehicles, drones, and cargo bikes. Here are several examples: BrightDrop launched by General Motors is a start-up that uses cutting-edge technology to provide "all-electric first- and last-mile products and services." FedEx, Walmart, and Verizon are all customers.
Metaverse: In 2023, the flood of metaverse activations in retail is unlikely to lessen. Several brands entered virtual worlds last year to promote their brands and interact with younger audiences. Gucci, H&M, Puma, and Gap are just a handful of the brands that have dabbled in the increasingly difficult-to-define metaverse.
PwC estimates that AI could reduce worldwide greenhouse gas emissions by 4% in 2030.
Ethical Standards: Businesses are attempting to assure that their vendors, partners, and suppliers adhere to ethical standards for environmental stewardship, sourcing, and worker conditions.
Use of Recycled materials: Many brands introduced new recycled-material initiatives in 2022. This includes recycling programmes and the distribution of capsule collections made from existing recycled materials. Several big names, including Zara company Inditex and Goldman Sachs Asset Management, have invested in recycled materials startups.
In the last 12 months, half of consumers say they paid a premium—an average of 59% more—for products labelled as sustainable or socially responsible.
Conclusion: With customer interest growing, companies and brands may launch additional environmental efforts in 2023. Although the greater cost of more ecologically friendly retail products may deter some customers from purchasing them, a survey finding says: Consumer behaviour is changing, with three out of every four customers saying that they want to do more at home to achieve their sustainability goals, such as lowering water and energy usage, recycling products, and generating renewable energy.