Supply chain News and trends

Sustainability has become a top priority for many consumers, and retailers are responding. A Deloitte report showed that 55% of consumers surveyed recently bought a sustainable product or service. In response to growing demand for eco-friendly products, retailers are trying to reduce their impact on the environment. They’re working to combat the effects of climate change, reduce waste, and eliminate their carbon footprint.

The sustainability trends for 2023 go beyond eco-friendliness, however. They also include measures aimed at improving working conditions and employee well-being.
In order to meet these sweeping goals, companies rely on data and technology.

Sustainability trends 2023 reshaping retail
The United Nations World Commission on Environment and Development defined sustainable development as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”

In other words, it’s a way to preserve resources, care about the environment, and build a better, safer reality for all.

Here’s our breakdown of some of the biggest sustainability trends impacting retail in 2023:
1. Greater transparency, increased regulation
2. Focus on improving delivery to reduce the carbon footprint
3. Rise of the circular economy
4. Eco-friendly, fair workplaces
5. Ethical supply chain
6. Growing role of data and AI in sustainability efforts
7. Reliance on cloud technology

Via EcoVadis

There are signs of a disconnect between consumers and retailers when it comes to sustainability.

A recent report has found that two-thirds of consumers are willing to pay more for sustainable products than retailers expect — and reveals that consumer preference for recommerce models is also being underserved.

Further reinforcing this misalignment is the finding that only half of the senior retailer executives surveyed believe sustainability to be an important purchase consideration for consumers — a stark contrast to the three-quarters of consumers saying it is “somewhat” or “very important” to them.

Where the two sides do meet is with nearly all the senior retail executives agreeing that today’s consumer expects retailers to operate in a more sustainable way.

Via EcoVadis

Brands have realized that focusing on sustainability is a critical part of the modern supply chain by locating and arranging warehouses and fulfillment centers at the nearest location to optimize travel time and resources.

There is a huge shift that has been observed in the brand's world as the industry is switching to a non-retailer-based model and incorporating D2C models in their businesses. And the same trend is forecast to grow over 15 times, almost threefold from the current size by reaching $100 billion, as per the recent report by Statista. 

D2C is becoming a pivotal factor and disrupting the retail industry post-pandemic. The innovative approach, quality product, unbelievable level of customization is catching the attention of especially young customers towards D2C brands. 

Via EcoVadis

The voluntary guidelines, published by the BRC, outline the steps retailers can take to adhere to circular economy principles. By following this circular model, the BRC says retailers will further the progress they have already made to lengthen the lifecycle of the products they buy.

As part of the guidelines, it explains clothing, footwear, homeware textiles, and other items, retailers can promote resale markets and platforms; use hire and rental subscription services; and offer product swaps, upcycling and repair schemes, instead of throwing away items.

The guidelines also emphasise the importance of quality checks, which “clearly informs” the customer of the item’s condition. They also clarify that its aim is not to promote the circulation of perfect items, but rather to circulate all items, “safe in the knowledge” that both buyer and seller have the same level of information and expectation of their condition.

Retailers recognise the role they can play in helping their customers shop in more environmentally friendly ways.

The UK trade association explains that its long-term goal is to limit, and ultimately end, the sending of items to landfill unnecessarily and to keep them in circulation for longer so that they can be used and loved by more people.

The BRC says it is already working with retailers on their journey to Net Zero through their Climate Action Roadmap. Supported by over 80 major retailers, it is the Retail Industry’s commitment to reduce industry and supply chain carbon emissions to zero by 2040.

Chief Executive of the BRC, Helen Dickinson OBE, said: “We are delighted to launch our first voluntary Guideline on second-hand and preloved items. With more people looking for ways to shop sustainably, particularly as the cost of living rises, the sale of second-hand items in-store and online can encourage sustainable behaviours at affordable prices and take us one step further towards a circular economy.

“Retailers recognise the role they can play in helping their customers shop in more environmentally friendly ways, and we hope that this Guideline will help many on their sustainability journey.”

Via EcoVadis

Sustainability often comes at a price, but despite inflation and other global disruptions, many Americans are open to shopping sustainability. Among those surveyed, 68% indicated they would pay more for sustainable products. This increased from 56% in 2020 to 47% in 2019. Gen Z stood out again when it came to spending and reported that they were the most likely to pay up to 100% more for a sustainable product.

Related to cost is also where consumers are shopping. Sustainability is driving consumers to change the brands they shop from based on whether they make sustainable offerings. 50% of U.S. consumers have changed where they purchased goods in the past year, and 14% are purchasing from businesses with sustainable practices.

Via EcoVadis