(post excerpted from 5/31/11 blog by Klein Merriman, Association for Retail Environments)

There is really no doubt that a recovery is underway in the retail environments industry. Here at A.R.E., we’ve just received the results of our 2011 Industry Performance Report.

There’s a lot of good news in this year’s report. First, industry revenues actually grew 9.4 percent in 2010. That’s good news after the declines in both 2008 and 2009. And sales are projected to grow an additional 15 percent in 2011, according to the Revenue Trends Survey we conducted in March. Additional good news from the Industry Performance Report: Profits have returned—with a median 2.7 percent pretax profit margin reported for 2010.

Survey participants were asked to identify three practices from a list of 10 where they believed their company excelled, compared to the average company in our industry. A few best practices were cited significantly more frequently by the high-profit companies. For example, high-profit companies cited “sales and marketing” as a best practice much more frequently than the typical companies did. The high-profits also cited “design and product development.”

This best-practice data is not presented as statistically valid or as incontrovertible evidence, but it offers some interesting food for thought. We now can see that high-profit companies see themselves as excelling in sales and marketing as well as in design and product development…in comparison with more typical companies.

###

Link: http://www.retailenvironments.org/RETAILENVIRONMENTS/RETAILENVIRONMENTS/Networking/Directory/BlogViewer/Default.aspx?BlogKey=6192a160-51bf-4274-912d-a30b1c874ec9

(by Heather Clancy, SmartPlanet.com)

What do consumers “see” when the word green is used to describe a product? A new survey of 2,000 American and Canadian consumers from biotech company Genencor indicates that renewable materials are the things they most associated with that label, followed by the energy needed to produce the product. That’s just one finding of the new Genencor Household Sustainability Index, which also found that acceptance of the term “biobased” is on the rise.

According to Genencor, here’s a breakdown of what consumers consider to be green attributes. The responses differ slightly depending on nationality:

American
Made from renewable materials (40 percent)
Uses less energy to produce (38 percent)
Contains little or no harmful materials (37 percent)
Requires less energy when product is used (33 percent)
Uses less water to produce (27 percent)
Uses less water when product is used (25 percent)

Canadian
Made from renewable materials (50 percent)
Contains little or no harmful materials (48 percent)
Requires less energy when product is used (38 percent)
Uses less energy to produce (37 percent)
Uses less water when product is used (33 percent)
Uses less water to produce (29 percent)

The likelihood that a consumer will buy a green or biobased product, if cost and quality are comparable to a non-green alternative, is fairly high at 80 percent. In Canada, consumers were more likely to buy green household cleansers than other products; while Americans were considerably less focused on this category, it was still the most frequently cited product cited by the survey respondents.

The chart above shows how likely U.S. and Canadian consumers are to buy three different types of things — biobased ethanol, laundry and dish detergents, and biobased clothing.

Women were slightly more likely than men to convinced that green descriptors were accurate. In addition, the more familiar a person was with green concepts in general, the more likely he or she was to have confidence in green claims.

###

Gary Barker, CEO of Ditto® Sustainable Brand Solutions spoke before a full house of environmental industry peers at the San Francisco Green Supply Chain Forum on Friday, May 13th. Leveraging years of experience as an award-winning industrial designer, Gary shared the design and marketing strategies that have made Ditto successful: reverse engineering retail display and consumer products to be 100% recyclable.

The monthly Forum is rewarding as a way of promoting forward-thinking ideas, and also serves a strong networking role, allowing for sharing ideas among like-minded industry groups. There’s a strong mix of business, non-profit, and advisory groups in the Forum’s membership, natural synergies that open discussions for creating mutually beneficial alliances.

“Ditto is a truly revolutionary business; sustainable and well-positioned to grow significantly as our planet embraces green solutions to age-old (landfill) problems!,” stated Paul Tasner, co-Founder of the San Francisco Green Supply Chain Forum.

For more information:
Ditto® Sustainable Brand Solutions: www.dittobrandsolutions.com
San Francisco Green Supply Chain Forum: http://groups.google.com/group/sf-bay-area-green-supply-chain-forum

What happens when a company takes responsibility for a product beyond the UPC reader at the store? How does a company reverse design products to be manufactured from sustainable materials so that they are 100% recyclable? What does a green product really look like?

Gary Barker, CEO of Ditto® Sustainable Brand Solutions will address the San Francisco Green Supply Chain Forum on Friday, May 13th on environmental design and manufacture of ecologically intelligent and highly designed everyday products. Gary will discuss reverse engineering retail display and consumer products to be 100% recyclable. He’ll also share marketing strategies for creating mainstream consumer acceptance for sustainable products and – their bigger challenge! – how Ditto has successfuly influenced retail industry decision makers to adopt green products in order to connect with the vast majority of American consumers with a stated preference for buying sustainably manufactured products.

Where: San Francisco Green Supply Chain Forum
MBA Campus, San Francisco State University
835 Market Street, 5th Floor Conference Room

When: Friday, May 13, 2011 from 12 – 1:30 pm

How: This is a free event hosted by the San Francisco Green Supply Chain Forum.

Gary is an award-winning designer who’s work includes projects for the GAP, Adidas, Starbucks, Samsung and the National Geographic Society. He was awarded an Artist Fellowship from the Massachusetts Council on the Arts and Humanities and has served on several boards such as the Graphic Artists Guild, Board of Directors for ICON4, MFA Review Board for the School of Computer Arts New Media at the Academy of Arts University in San Francisco.

###

(by SustainableProductsReview.com)

Sustainable product design is a factor which is proving to be ever more important in the fight to save and preserve the planet. Designers have now established standards against which any new product can be measured to see if it can be advertised as being sustainable. A label of sustainability is a major selling point, as an ever increasing awareness of environmental factors is ensuring that there is a guaranteed niche market for anything which genuinely has no negative effect on the environment. Design for a product which is marketed as sustainable must consider one thing above all else – can the process of creating the product be carried on indefinitely?

Associations have been formed which can label products as sustainable, according to the strict standards which are set. The criteria by which products are judged are simple enough to understand, but not so simple to evaluate. The entire life of a product is assessed, right from the moment the raw materials are extracted from their source to the moment when the product is discarded at the end of its useful life. All stages of the product’s life have to be sustainable. That is, they have to be duplicable over an indefinite period of time.

New accounting systems have been devised to allow sustainability to be taken into account when evaluating products. The conventional accounting system only considers one factor, and that is financial profit. The new expanded accounting methods consider extra factors, which are of equal if not even greater importance in creating an improved living environment for all citizens. The environmental factor is given primary consideration, and social factors are taken into account as well. By using a more accurate system of accounting, we are now in a far better position to evaluate which products truly do have sustainable design.

One of the most contentious issues with sustainability is the issue of packaging. Packaging is nearly always considered to be just a useless addendum to a product which provides no real value, and which simply wastes resources. Much of this is true, but there are of course cases where packaging is necessary in order to prevent damage to a product during transit. The packaging industry has its own standards, and its own associations which uphold these standards and issue labels based on these.

The product and its packaging need to be considered as an integrated whole when evaluating sustainability. If either has even the slightest element of permanent damage to the environment, then the product cannot be considered truly sustainable. That is not to say that it should automatically be rejected, but practical considerations have to apply.

However much we want to protect the environment, we have to live in the real world as it is today. Often, this means compromise. The good news is that there are a great many situations where we truly can make a sustainable choice, and that is largely due to advances in sustainable product design.

(by SustainableBusiness.com News)

The appetite for green products has increased in the past two years, and green consumers are likely to demonstrate brand loyalty, according to a new poll.

Green consumerism is on the rise, with 78% of consumers believing more than ever that buying green is a way to shop with their values and ethics (up 9 points vs. two years ago), according to a new Green is Universal poll. The poll was originally conducted in 2009, and was just re-fielded to measure the change in consumer sentiment around green.

68% of consumers say it’s worth paying more for a green product or service if it is a brand they trust (an increase of 8 points vs. 2 years ago). The poll also reveals that an overwhelming majority of consumers feel they have a personal responsibility to take care of the earth (93%), and believe that if we don’t do so, there will be negative consequences for future generations (91%).

“These findings underscore that consumers are increasingly shopping with their values, particularly when it comes to the environment,” said Beth Colleton, Vice President, Green is Universal. “This is an enormous opportunity for marketers to communicate their brand’s commitment to green, as a way to build both loyalty and returns for their business.”

Not only do consumers hold themselves accountable when it comes to protecting the earth, but they believe companies should be held to the same standard. Nine out of 10 consumers say companies have a social responsibility to protect the environment, and three-quarters (77%) say they have a more favorable impression of companies that promote environmental causes. Putting their money where their mouth is, findings show substantially more consumers who say they have boycotted a company/product in the past year, because it had policies and practices that were not environmentally responsible (27%) (up 8 points from 2009).

Additional highlights from a related but separate Green is Universal poll on re-use, “From Trash To Treasure,” include the following:
- 62% say they are making a conscious effort to purchase products made by environmentally responsible companies
- 68% say they are paying more attention to whether products are made from recycled materials
- 84% appreciate companies who make it easier for them to recycle
- 78% appreciate companies who make using recycled materials a priority because it provides them with an easy way to help the environment
- 57% say they are likely to encourage others to buy products that are made from recycled materials

(by Maureen Azzato, GreenRetailDecisions.com)

(Note: This is Part 2 of a two-part report from a Mintel presentation about the different options available to manufacturers to develop green products. Part 1 tackled consumer expectations. Part 2 discusses the different paths to convert conventional products to sustainable ones.)

Over time, sustainability and green products are gaining shopper attention, and the easiest alteration is for manufacturers to change the package type, according to Lynn Dornblaser, director of CPG Trend Insight for Mintel International.

“This is the most common path manufacturers are choosing, primarily because consumers understand it,” said Dornblaser, who spoke recently at the FMI/GMA Sustainability Summit in Washington D.C. In fact, 67% of consumers said they bought a product that made a sustainability claim because they want to create less waste, according to Mintel research.

Some new initiatives are moving from bottles to pouches, although this is more popular in Europe than the U.S. so far. Reckitt Benckiser’s Lysol, however, is taking the plunge with 100-fluid-ounce pouch with a carry handle and a twist off cap. “U.S. consumers may balk at the format, but the message is a strong one,” she said.

In addition to changing the package type, there are at least four other major paths to develop greener products, Dornblaser said.

•Change the package size or weight: “Although consumers say they look for products that use minimal packaging, they are mostly concerned about economy, “said Dornblaser, noting that 40% of consumers said they are more concerned about economy than green for cleaning products. “So focus on the green benefits, but promote the economy of the choice,” she recommended. One product of note includes Method laundry detergent, which has eight-time concentrated detergent in a pump container with a claim that the product is made using less water and plastic than conventional two-time concentrated detergents. Some like Kimberly Clark’s tube-free toilet paper and PepsiCo’s Rip n’ Go Quaker Chewy Granola Bars (no box), have removed packaging altogether. “We could see more of this type of packaging if the consumer finds it to be a seamless transition,” Dornblaser said.

•Change the formulation: Feature a new proprietary ingredient, promote your “kind to the environment” formula and investigate third party certifications, “but be careful and be sure consumers know what the certification means,” Dornblaser warned. For example, Mintel research revealed that while 34% of consumers said they buy products with Fair Trade claims, the same percentage said they have never heard of the claim. An example of a new and unique branded ingredient is EarthGrains new formula, which uses 20% Eco-Grain wheat that is grown using sustainable farming practices. The product tagline is “Helping to preserve the earth, one field at a time.” Dornblaser said this approach can work “as long as there is a clear, traceable story.”

•Tell the story about the product and/or the company: 36% of consumers said they would prefer to buy green products from a company that has a clear set of green standards, according to Mintel research. Moreover, 23% of U.S. consumers would like to see a detailed report of a company’s environmental impact. “Surprisingly, companies do less than you would imagine to easily and clearly tell consumers what they are doing as a corporation – and consumers want to know,” Dornblaser said.

•Combine sustainability claims with wellness: 43% of consumers buy organic products because they are concerned about the environment, according to Mintel, indicating that sustainability and wellness are interrelated in the consumers’ mind and can build on each another.

by Maureen Azzato, GreenRetailDecisions.com

(Note: This is the first of a two-part report from a Mintel presentation about the different options available to manufacturers to develop green products. Part 1 tackles consumer expectations. Part 2 next week will discuss the different paths to convert conventional products to sustainable ones.)

Despite the economic downturn, consumers remain loyal to green products, but manufacturers who thought they would be willing to pay more for these products were mistaken.

In fact, a majority of consumers will purchase green products only if price, quality and convenience are equivalent to conventional offerings, according to Lynn Dornblaser, director of CPG Trend Insight for Mintel International.

To better understand where consumers are on the green scale, Mintel research reveals that only 9 percent are what they term Super Green, while 27 percent are True Green, 57 percent are Light Green and 7 percent are Never Green.

“Sustainability is a crowded place,” said Dornblaser, who spoke recently at the FMI/GMA Sustainability Summit in Washington D.C. In fact, 20 to 25 percent of all new products in the U.S. carry sustainability claims and many bundle multiple claims together, which can be advantageous in some instances. For example, bundling sustainability and wellness claims together makes sense to the consumer. “Adding a variety of benefits and claims together can yield something that is far greater than the sum of its parts, both for consumers and for the environment,” Dornblaser said.

And when it comes to sustainability, it is often smaller companies leading the charge. “In some cases small companies help us rethink what’s possible and large companies find ways to have big success,” she said.

One small company success story Dornblaser relayed is Innocent smoothies and juices in the United Kingdom, which are all natural and Rainforest Alliance certified, with a portion of proceeds going to charity. A large company example is Kraft’s Back to Nature line, which is organic, uses recyclable package and supports Nature Conservancy.

But then there are companies, such as Kellogg, whose seemingly logical sustainability initiative may have been just a bit ahead of its time. Kellogg came out with space-saving boxes that eliminated some headspace, but consumers were skeptical and assumed there was less product, even though product weight was the same, Dornblaser said.

“Consumer need bold statements to help them make choices at the shelf,” Dornblaser said. “Most surprising is that many CPGs are hiding their sustainability light under a bush, and I’m not sure why. They should be pushing the messages out — it’s all very positive.”

According to Mintel, there are five top corporate responsibility practices U.S. consumers want to see from companies. They want them to:

• Minimize air and water pollution;
• Minimize use of toxic chemicals;
• Offer recyclable, reusable or biodegradable products;
• Reduce carbon emissions or carbon footprint; and
• Reduce the amount of waste generated.

“Sustainability initiatives and benefits of some of these programs remain confusing, so continued consumer education is essential,” Dornblaser said.

Last week Ditto was in Las Vegas. But we weren’t interested in games of chance; our goal was to spread the word about Ditto’s revolutionary company and products.

For three days at GlobalShop 2011 (March 28 – 30th), Ditto Sustainable Brand Solutions shared the floor of the Sands Expo in Las Vegas with over 600 other exhibitors, before thousands of buyers representing the Top 200 global brands. Global Shop is the largest store design and retail marketing show in the US. And we were able to capitalize on that visibility, connecting with some of the world’s most forward thinking and innovative retail brands.

And the word is getting out. Our Ditto Sustainable Paper Displays stood out distinctively from the crowd. Fully brandable and a powerful marketing tool, attendees saw first hand the adroitness of Ditto Displays to connect retailers to their customers. From around the world Global Shop attendees learned that Ditto Displays ship 35% more garments per container for their Garments on Hanger (GOH) systems, or that they store 48% more product in distribution warehouses. They smiled when they saw our Displays, just like their customers do when they buy products on our innovative and ecological Displays.

In addition to walking away with over 150 sales leads, Ditto’s CEO Gary Barker, sat down with trade media to tell our story; he was interviewed by Anne Downes, editor of P-O-P Design, Jo Rossman, sustainability writer for A.R.E., and Claire Dickinson, associate editor for visual merchandising of WGSN.

Ditto will be back at Global Shop in 2012 to keep telling their story.

Ditto believes that it takes the effort of many committed enterprises to affect a change in perception and everyday actions that’ll result in meaningful conservation of the Earth’s limited natural resources. So, when we learn about a group that’s helping to make that change a reality, we love to let our readers know about it!

Recyclebank.com is more than a web site offering lots of information and suggestions for sustainable action, the New York, Philadelphia and London-based corporation provides a point-base reward system for motivating people and companies for “taking everyday green actions”. It’s really pretty simple; you select a green action you want to be rewarded for and each time we have confirmation that you’ve done it, either through a points code or by recycling, Recyclebank awards you “Recyclebank Points”. These points can be used for rewards at local and national retailers and online. Today, through their rewards-for-recycling program, they have more than two million members in over 300 communities across 29 states and in the United Kingdom.

Facebook: www.facebook.com/Recyclebank
Twitter: www.twitter.com/Recyclebank