Category Archives: packaging

What opportunities for green marketing as retailers expand in Indonesia?

Carrefour logoThe Jakarta Post had this interesting tidbit of news a few days ago: “This year, minimarket chain Indomart is targeting to open 750 new outlets while its main competitor Alfamart plans to open 600 new outlets. ” This is happening while hypermarkets continue an aggressive expansion across the archipelago, with Carrefour Indonesia (40% market share in the hypermarket segment) planning to give the country 20 new outlets each year.

So if you’re working for an environmental NGO, why exactly is this worth stopping to think about?

Convenience shopping carries a rather mammoth footprint with it. Every additional retail outlet that opens represents new transport journeys for distributors, which creates additional traffic and polluting emissions. Add to this energy use to air-condition and light large spaces. Then you have the products themselves, packaged in styrofoam and other plastic material—and we all know where this packaging will end up (hint: not in a sanitary landfill).

If we look beyond the employment opportunities and added convenience that more retailers will offer to Indonesia, one thing is clear: unchecked and unmanaged, their impact will be felt in the air that we breathe and the water we use to wash ourselves.

And here is the opportunity for environmentalists and retailers: crafting alliances to collaborate on energy use optimization, waste reduction and consumer awareness. This will ensure that as we see more supermarkets around us, our living environment does not suffer from it.

For progressive companies, this means working with NGOs to source food products locally as much as possible, reduce superfluous and polluting packaging, and most essentially, educate customers through green marketing and work with them to reduce their environmental impact.

Because of their centralized structure, companies such as Carrefour and Hypermart lend themselves well to implementing environmental measures that will be replicated at a national scale. Some NGOs may balk at the prospect of working with big corporations—but it may offer the best chance of delivering large-scale actions that will limit the environmental impact of modern shopping.

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Free ‘green bag’! (with bonus plastic wrapping)

What do you get when you buy two packs of detergent? No less than a free cloth ‘green bag’ (the brand’s term, not mine).  Such was the deal on offer at a Sanur supermarket today, strategically placed next to the cash register for those impulsive last second purchases.

Two things struck me.

First, you have to appreciate the irony of getting a free ‘green bag’ which—get this— is wrapped in its own plastic bag, and then bundled again in more transparent plastic wrapping for the 2 packs of detergent. Whereas the original reason for the so called ‘green bags’ was to reduce disposable plastic bags, this detergent promotion essentially tramples over the whole idea and hands you a cloth bag with green motifs (of course emblazoned with the brand name) while still using adding plastic to the waste stream.

Second, the ‘green bag’ label has officially lost its true significance. It now essentially boils down to this: design a bag from any non-plastic material (or even polypropylene (yes, its plastic)), slap on it some green leafy motifs, mix in a slogan with the words green or eco, brand it, and hey presto—green bag! Will your customers use it? Probably. Will they reduce their use of plastic bags because of it? Probably not.

And here is the problem. A ‘green bag’ is never really a green bag unless its owner turns it into one. And that doesn’t require magic—only bringing it along for a shopping trip on a recurrent basis. Until this happens, businesses are stalling on their sustainability work.

In 2010, so-called ‘green bags’ are no longer a market differentiator to burnish a company’s sustainability credentials. Its time to move on. To stand out from the competition and implement a business sustainability policy that catalyzes a demonstrable positive change, don’t just give your customers a free cloth bag. Show them how to use it in a green way, and then reward them for it. Freebies. Discounts. Anything that reinforces the behaviour and loyalty to your brand.

And perhaps a good start would be to give away the detergent IN the green bag, rather than packaged in plastic.