Sustainability Matters

WITH JOSEPH BADR, ANAITA SARKAR, KIRSTEN KORE & COSTA KOULIS

We sat down with sustainability champions Anaita Sarkar of Hero Packaging, Kirsten Kore and Costa Koulis of Designerex as well as Joseph Badr of Dsmile to learn more about why sustainability is of utmost importance to retailers now, more than ever.

 Sustainability in retail, why does it matter?

 

Anaita: The goal of retail businesses has always been to fulfill the needs of consumers. Now, retail businesses must understand that they need to do more than that. They need to satisfy customer needs, but not compromise the planet in doing so. Retailers are also seeing an increase in customer demand for more sustainable practices. Almost 80% of retailers believe that their sustainability efforts lead to higher customer loyalty and according to Shopify, nearly 50% of consumers globally are choosing to buy from brands committed to sustainability. This shows that if retailers want to truly make customers and employees happy, their focus on doing good is critical.

 

Kirsten: There is a plethora of reasons why it matters, just to name a few, 1 in four parcels in retail are returned which equates to a huge amount of packaging waste and emissions, and the fashion industry globally is equating to 92 million tons of textile waste. We started Designerex because of a gap in the market that wasn’t being fulfilled and one that consumers were yearning for. So, there is no other way forward but for retailers and brands to put sustainability at the forefront of their agenda. Those who don’t will simply lose out as consumers demand more transparency around the goals and actions of the companies they buy from.

 

Joseph: It is well known that the healthcare sector is a major contributor to single-use consumption. Our mission at Dsmile is to stop that! That’s why after more than 20 years on the frontlines of our dental industry, we’ve created Australia’s first reusable oral healthcare system with subscription refills. It is designed for a new generation of conscious consumers. I wholeheartedly believe our circular model is the future of retail and we’re only just getting started. 

 

What is the importance of small retailers having a sustainability plan?

 

Anaita: Having a plan is the fastest path to achieving any sustainability goals. I usually follow the G.A.M.E plan, which asks retailers to define their goals, actions towards those goals, metrics, and external parties who may have specialised skills in certain sustainable activities. Small retailers are the ones who find it hardest because they are juggling everything in their business, so having a clear plan with daily or weekly tasks can really help.

 

Costa: Small retailers are agile and can pivot quickly, which places them in an incredibly advantageous position against their larger competitors. For them to focus and lead in sustainability not only addresses consumer's desires for more sustainable solutions but will inevitably set them up for success. I believe this is a very low-hanging fruit opportunity for small retailers to gain market share quickly.

 

Joseph: Having a simple and actionable sustainability plan doesn’t have to be difficult. At our dental clinics, for example, we have appointed green ambassadors in each location who oversee the implementation of our single-use and waste-reduction initiatives. They also oversee our supply chain impacts, sustainable customer feedback, green partnerships and collaborations, and scalable processes to implement key findings.

How can sustainability be achieved for SMEs?

Anaita: There are 4 quick win ways SMEs can achieve sustainability: Look at the electricity usage: switch lights to LED, use solar where possible, and put lights on a timer. Look at all the paper in the office or in your retail store and see what you can digitize immediately and what you can remove altogether. Minimise and replace single-use plastic packaging. Retailers can switch to home compostable packaging and/or remove excess packaging like ribbons, stickers, and thank you cards. Replace traditional bins with separate bins for rubbish, recycling, and compostable/food waste.

Kirsten: Firstly, transparency and communication to their audience are of paramount importance, as we all do need to truly understand you can’t do it all at once, so take baby steps through assessing your opportunities, seek advice from an expert sustainability consultant, and start chipping away!  Designerex has become the world’s largest designer dress renting platform, with over 40,000+ dresses & 1,000 designer brands available to consumers, all because we listened to what people wanted, which was the desire for accessible designer occasion wear, for one-off special events. Ultimately this is driven because, prior to Designerex, consumers couldn’t attribute a justifiable cost-per-wear to seasonal expensive pieces.

Joseph: A clear vision, intent, an executable plan, and an accountable team are the secret sauce here. After two decades in oral health care, I’ve also learned that collaboration with other sustainable brands is crucial. Why? Because none of us can go at this alone. Exchanging ideas, maintaining momentum, and creating a culture of innovation is the only way forward for SMEs.

 

 What trends are you seeing in customer behavior when it comes to making sustainable purchases?

Anaita: Research done by Couriers Please in 2022 showed that 9 out of 10 Australians are more likely to purchase ethical and sustainable products over products that are not. 85% of those customers want brands to be more transparent about their practices. At Hero Packaging, we agree with these stats. We are seeing customers demand more from the brands they buy from, whether it’s certification numbers on the packaging, supply chain transparency, or the carbon footprint of each order. A huge trend we are also seeing is the willingness to spend more on products that are better for the environment and/or products that give back to a charity or NFP.

Costa: Some interesting data on Gen Z - they will soon account for nearly 50% of global spending power by 2030, and, in the US alone, 75% of them say they want to consume sustainably. But at the same time, this cohort of consumers is also the very reason for the fast fashion behemoth, Shein's success. What this says is that desire to consume sustainably is there, however, the actions with spend are different. It’s our job to win these consumers over, by creating products and solutions that they actually love, and that fit into the current demands of the retail experience, such as last mile, personalisation, shopping channels, etc.

Joseph: Customers want sustainable products, it’s that simple. We found that over 90% of our patients have chosen Dsmile in part because of our obsession with creating refillable oral healthcare products that transition them away from single-use consumption. But it doesn’t stop with them. We’re seeing this across the board with Dentists, Oral Health Therapists, health insurers, corporates, and our other partners.

 

Climate change is at the forefront globally for all businesses, how can small retailers pivot to deliver more sustainable goods and practices in a frictionless way?

Kirsten: Sustainability can be overwhelming. It is nearly impossible to understand it completely across the board. Again, identifying low-hanging fruit is the easiest and quickest way to implement new sustainable practices.

Joseph: At Dsmile we saw a problem, so we created a solution. Our remit was simple: How could we empower Aussies to reduce their single-use waste? We got to work creating reusable products and subscription refills. Four times each year our patients receive three months’ worth of dental products delivered straight to their door. It’s a convenient, frictionless, and more cost-effective way of transitioning our customers away from single-use consumption.

What are your top 3 tips for retailers to be more sustainable in 2023?

Anaita: Ask customers what they would like to see in terms of sustainability in your business. Collaborate with other businesses who have the same goals as you and look at websites like BCORP and APCO to see best practices in business.

Costa: Ask and listen to your customers. Be transparent with them. Do something first that matters to them. Get advice from an expert sustainability consultant to help you identify quick wins and an overall plan that is specific to your business. Place sustainability at the top of your agenda moving forward, including the development of any new product, solution, or strategic partnering you do.

Joseph: Get on the front foot - Engage a sustainability expert to help put a plan in place. Join forces - Collaborate with local sustainable brands to exchange ideas and drive momentum. Educate, tell your team, customers, and the market about your sustainability drive and engage them in the process.

 

 What are your top 3 predictions for customer purchase behaviour around sustainable products in 2023?

Anaita: Boycotting brands that continue to have non-sustainable practices. I also believe many companies will be reported for not doing the right thing. Consumers will start sharing more sustainable unboxings on social media and refuse to create content around single-use plastic packaging. There will be a huge move towards second-hand purchases and rentals.

Kirsten: The Circular Economy will continue to be embraced and mass adopted by consumers. People will increasingly look for transparency on supply chains and sustainability goals from their favorite brands and retailers. Consumers will begin to gain a more significant voice and influence on heightening awareness of brands doing good, and bad.

Joseph: After more than 20 years as one of Australia’s leading dentists, I’ve seen that customers want 3 simple things: sustainable products that are effective, simple, and beautiful. This is our philosophy at Dsmile and empowering everyday Aussies to embrace sustainable oral health care in 2023 and beyond is what gets us excited!

 What are your reflections on the impact that shifting customer sentiment toward the environment has been?

 

Anaita: I’m excited that consumers are pushing retailers to make changes. When it was up to the retailers alone, sustainability efforts were pushed to the bottom of the list, but as profitability and growth become more and more affected, retailers are jumping on board. I love to see this shift.

 

Joseph: It has forced leaders like me in the health sector to finally act against single-use consumption. Driving and supporting this sustainable transformation via our reusable oral care products & subscription refills is what customers want and what the world needs. We’re all in this together so it’s the only way forward for us and our customers.

What advice can you give small retailers on starting their sustainability journey and how to stay on course?

Anaita: Do the small things first. Ticking those things off your list and seeing how customers respond will make you feel motivated to make bigger changes. Set long-term goals and make a weekly action list. Keep communicating with customers every step of the way and get them rooting for you.

Joseph: It is good for the planet and good for business, so it’s a no-brainer! Small businesses have the advantage of being nimble, so they can make green pivots without getting bogged down in the legacy of the unsustainable business.

 

And finally, what we can expect to learn in your session at Retail Therapy?

Anaita: Practical and actionable advice on how to be more sustainable that businesses can implement immediately!