Green efforts equal competitive advantage.
The Green issue is more and more paramount in Retail industry today. So let’s look at the results of a new survey of 100 industry executives, lead by Aberdeen, a market research firm, identifying the top five drivers of sustainability programs in the retail industry.
For retailers, green initiatives have turned out to be a win-win; they are able to reduce operating costs and win customer loyalty. Here are some numbers to understand better the retailers attitude towards green efforts. First comes the desire for competitive advantage (57%), then the need to control rising energy costs (38%), the will for the improvement of brand value and equity (34%), and the need for innovation (31%), and pressure to comply with companywide mandates for environmental performance (30%).
According to the report, those “best-in-class” retailers can enjoy a range of advantages and benefits: revenue growth, cost savings and increased customer loyalty; in terms of percentages, they are now achieving: a 20% decrease in energy costs, an 8% decrease in their logistics and transport costs, 5% less in merchandise costs, +17% in customer acquisition and retention.
So what’s the way to become a best-in-class? The answer comes from Aberdeen's Jhana Senxian, author of the survey: "Sustainability is as much about change in organizational culture as it involves process transformation. Vision, leadership, education, and communication are as important as processes and technology. To be successful, companies must be visionary, holistic, and quantitative in approach."
(source: Sustainable life media)