Going Green

Green, eco-friendly, environmental friendly...
Lately, these words have found salience amongst large retailers in the US. There seems to be a need to look and feel eco-friendly in their community. In part, to do their bit for the environment, more so to grab the increasing number of socially conscious customers



Though the retailers are working at a break neck speed to project a healthy image, they are following specific strategies to gain competitive advantage in this sphere.
Following the complete value chain, we observe that from suppliers to the customers, the retailers are trying to effect changes in all segments.
Starting with suppliers, the retailers enable sourcing eco-friendly materials to design a healthy product. Although healthy products form a valuable part of the retail store, initiatives like waste management, using recyclable paper and reduction of harmful carbon emissions from the stores form a significant part of their ‘greening’ efforts.
The above efforts also need effective communication to ensure healthy sales, thus the retailers, in tandem with manufacturers promote their products through an assortment of marketing activities.
Some effective tools in this regard are social activities and alliances with various ‘Healthy’ associations that ensures the much desired visibility amongst the consumers.
However, customers are still wary of many products which dot their shelves. Like the organic foods, the customers are full of skepticism for healthy products on offer by these companies. They feel that the products are nothing more than marketing ploys to attract the socially conscious customer base. They feel that the functional utility of these healthy alternatives isn’t much different than the conventional products.
The retailers don’t seem to be complaining though; companies like Wal-Mart, Tesco and Lowe’s sell organic apparel, natural foods as well as energy saving electronic appliances.
All the above activities make sure that the retailers get the desired clientele in their stores.

By Varun Kumar