Green Grows

On November 12th, Brian Morrissey reports on a recent Yahoo study in AdWeek30. Yahoo commissioned an in person survey of fifteen hundred 18-54 year olds in Los Angeles, Portland, Oregon and Chicago. 3 out of 4 (or roughly 77%) respondents described themselves as "green" consumers.

57% reported making a "green" purchase in the last six months. Motives varied. 23% described themselves as "deeply committed" to the cause. Another 24% found purchasing green "trendy". Yahoo surmises, this 24% is derived from the younger demographic 18-34.

Overall the study found 5 consumer groups:
1. Deeply committed - 23% who are early adopters who are going green for the long haul. This group is mostly females over 35 who are more educated and likely to live in metropolitan areas. The best message for this group is "positive environmental impact".
2.Trendy - 24% who are going green to be cool. This is a younger and more ethnically diverse group who are motivated by the message "everyone else is doing it".
3.Practical - 13% are motivated by immediate health benefits or dollar savings. This demographic is generally more rural, over 45 with children.
4.Passive - 17% understand that green is important but don't see going green as their responsibility. It is more the responsibility of others. These are younger adults 25-34, more female, with children. They can be swayed if the benefits to their family are stressed.
5. Other - 23% who don't care about the environment or don't take any action.

Green purchases are most often made in cleaning and personal care product categories. Sustainability considerations are entering into larger purchase decisions as well, particularly in the automobile category. 71% reported interest in purchasing an environmentally friendly automobile.

Consumers reported using both online (68%) and offline (72%) sources for research. Traditional media, web portals and web search were mentioned most often. Company websites (20%) and blogs (21%) were also rans for research.

This is an interesting statistic. Word of mouth and peer to peer information are two of the most powerful purchasing motivators. Is it possible the geographic locations had something to do with these findings? Possible in LA and Chicago, but Portland is one of the "greenest" cities in the country and is very community oriented so I have to think both these factors come into play in purchasing decisions there.

Is it possible this is NOT true in the green category? Maybe the question is defining "green". Purchasing "green" products doesn't make one "green", especially when a percentage of those purchases are most likely made because being "green" is "trendy". Curiously, the "trendy" group is the one most likely to be affected by peer decisions and to use technology for their research. Maybe these are the ones using websites and blogs for research.

What can we take from this? There is a great deal of Green Awareness. 60% of respondents are buying green on a regular basis no matter what their motivation. 4 of the 5 consumer groups are open to a green marketing advertising message. Open to information, Awareness and Action are positive results for Green.

till next week --Restore, Refresh, Recycle and Renew

386 million lbs of Clothing Waste

New York City produces 386 million lbs of clothing waste annually. That's about 6% of total waste. Clothing waste is defined as clothing, shoes, linens, towels, hats and handbags. It is a big problem and many of us are probably at a loss about what to do with all these unwanted wearables. It is often difficult, especially for city-dwellers, to get the items to a donation point and it is difficult to know which organizations are recycling responsibly.

A New York City organization, Wearable Collections, has created a recycling process for urban areas that makes great sense. Wearable Collections provides a recycle bin for buildings in New York City. They promote the bin throughout the building, pick up full bins, sort items and process the goods appropriately, selling secondhand clothing to third-party vendors providing reduced-cost clothing for consumers in South American countries.

In addition, Wearable Collections will act as an agent for non-for profit organizations, helping them put on successful clothing drives as fundraisers. They provide bins, help with promotion, handle logistics and distribution and then pay the sponsoring charity for the items collected.

According to the Council of Textile Recycling, clothing recycling is one of the most efficient recycling businesses with about 50% of textile waste recovered as secondhand clothing. 20% is processed as material and becomes wiping and polishing cloths. The remaining 26% is converted into fiber for products such as mattresses and couches.

Discarded clothing is distributed to those in need world wide. Charities sponsoring clothing drives raise much needed funding. Waste is diverted from landfills. And Wearable Collections works to maintain an eco-efficient process - another great example of a win-win grassroots effort.

till next week --Restore, Refresh, Recycle and Renew

Fair Factories Clearinghouse

We've discussed how difficult it is for the consumer to research "green", "sustainable" and/or "fair trade" companies. It is not much easier for retailers to stay on top of the same issues with their suppliers. Enter Fair Factories Clearinghouse.

Fair trade practice issues have been making news since the early 1990's (Nike, Kathy Lee Gifford, etc.) In 2003, the National Retail Federation (NRF) and Reebok joined forces and approached the US Department of State to suggest a non-profit organization that would oversee a "factory database" with categories devoted to fair trade practices. Members would share information about supplier factories so each member could easily find factories that were in fair trade compliance. Funding was received in 2004 and Reebok, the NRF, Retail Council of Canada (RCC) and World Monitors joined forces to start the FFC.

FFC is a membership structured organization where industry partners share efforts to create more effective and efficient monitoring practices for factory assessment. The goal is to support and maintain fair trade practices in a variety of industries across the globe.

Based on Reebok's generously donated Human Rights Tracking System software, an FCC proprietary software solution consisting of 2 modules (an Audit Management System & a Sharing Platform) was born. Members can better manage factory compliance with the following features: factory personnel directories, product supply chain maps, production schedules, standard and custom audit questionnaire distribution, recording and assessment, performance improvement management, opportunities for collaboration, access shared documents, and member contact directory. In addition, the package includes a self-assessment tool for risk management.

Membership continues to grow. Pariticipating Fashion/Lifestyle brand members include Patagonia, L.L. Bean, Inc., Levi Strauss & Co., Adidas and Timberland. L.L. Bean, Inc, Global Monitoring Manager, Mike Sheehy reports an increase in ROI and efficiency from day one. Fair Trade Compliace is not just good for the world, it's good business.

till next week --Restore, Refresh, Recycle and Renew

5 Barriers to Greener Sales

According to an article by Sheila M. J. Bonini and Jeremy M. Oppenheim dated October 2008 featured in the McKinsey Report Quarterly, there are 5 barriers—lack of awareness, negative perceptions, distrust, high prices, and low availability. Overcoming these 5 barriers is crucial if consumers are going to accept and support greener products. While the article did not focus on fashion products, the lessons learned are certainly applicable to the Fashion/Lifestyle industry.

Barrier 1 - Lack of Awareness
Resolution: Consumer Education. Companies, non-profits and government must not only educate consumers on specific products but also the larger issues of pollution, climate change, overfishing, and other environmental problems. The Energy Star program is a successful example of this partnership. Launched by the EPA and the US Department of Energy in 1992, Energy Star educates consumers about the way suitable products can cut energy use, save consumers money, and protect the environment. Every appliance that meets government energy-efficiency standards can carry the Energy Star label, which has gained widespread consumer recognition and trust through the education process.

Barrier 2 - Negative Perceptions
Resolution: Offer well-designed products made with quality raw materials. Fashion is an area that has worked to overcome negative perceptions and our discussion of Sam's Club organic cotton program illustrated this. Although this is not the case, much of sustainable Fashion is still clouded by the perception the 1960's hippie movement. In the Sam's Club case study, we discussed the tenet that green products must be equal to, or better than, conventional alternatives. In Fashion, people make their purchasing decisions based on style, color, hand (the feel of the fabric) and price. Green is the added value.

Barrier 3 - Distrust
Resolution: In an effort to gain the green consumer, some companies mislead consumers by highlighting a single positive product feature while ignoring the negative ones. Bamboo is a great example of this. Bamboo is a sustainable natural resource. It is easy to grow and replenishes itself very quickly, however, the process that makes bamboo into fiber (Bamboo Rayon) is one of the dirtiest processes in the Fashion industry. Companies must come clean about the true environmental impact of their products and their attempts to reduce it.Only then will consumers believe a company’s green claims. As we have mentioned before H&M, Patagonia and Timberland are examples of companies who do this.

Barrier 4 - High Prices
Resolution: This is a difficult one to overcome unless you are a huge company like Walmart or Payless that can keep prices low through the sheer volume of units they sell. Quanitfying the savings and environmental returns for the consumer on their investment is a good start. Creating a design or positioning a brand in such a way that the consumer is known to be environmentally conscious on sight is another way to help them justify the higher cost. For example, a person wearing the Patagonia label will be seen by others as environmentally conscious by wearing that brand.

Barrier 5 - Low Availability
Resolution: Make the products easy to buy. Advertise where they can be purchased. Invest in enough units to make a statement. Display items prominently at retail. Place Green products in prominent locations. On the fixtures, place them in the sweet spot "eye level". Provide educational materials or signage whenever possible. Make sure your employees are aware of the products and where they are placed so that they can help direct consumers through the store.

As a consumer, you have the power to overcome these barriers as well. Educate yourself on green products, production processes and producers. Research new green products for design - especially look and feel in Fashion. Consider the higher price against the benefits. Demand green products from your local retailers and support those retailers that supply them.

till next week --Restore, Refresh, Recycle and Renew