Retailers must prioritise inclusivity, community involvement, and sustainability to stay competitive and increase customer retention & loyalty, writes Krishnan Menon
The retail industry’s future is shaped by many factors, from digitisation to the growing emphasis on sustainability and ESG values. Businesses must embrace a fresh perspective and adapt continuously to enhance their consumer experience. They need to integrate inclusion and sustainability into their strategy for ongoing transformation.
Enhancing customer experience requires optimising operational efficiency throughout the supply chain. This ensures a seamless and personalised purchasing journey across all channels. Additionally, organisations are adopting inclusive business models to tackle environmental and socio-economic challenges in local settings. In the past year, 73% of Consumer Industry CXOs have increased investments in sustainability, as reported in Deloitte’s 2023 CxO Sustainability Report. Retailers use a systematic approach to sustainability that manages the dynamic difficulties and traverses the domain’s recent advances.
The rise of Eco-conscious and Inclusive consumers
Inclusivity is about upholding the core values of equal opportunity. It shifts the focus to ensure everyone is treated as individuals, empowering them to accept the opportunities they deserve. Inclusivity can breed support, build morale, and nurture loyalty.
At the dawn of this new era, consumers have a climate-friendly perspective on lifestyle choices and decisions. According to a NielsenIQ report, 76 per cent of consumers expect companies to reduce their environmental footprint proactively.
Moreover, businesses guided by the principles of sustainability these days have come up with diverse pricing strategies for their offerings. This approach helps make the products easily accessible and serves as a unifying factor, nurturing an overall sustainable ecosystem.
Retailers embrace Inclusivity & Sustainability
In a digitised and socially evolving marketplace, retail managers and brand leaders must continually adapt to changing consumer preferences to remain relevant. According to a Deloitte report, 34 per cent of consumers believe their trust in brands would increase if an independent third party recognises them as ethical/ sustainable. Another 32 per cent feel their trust would improve with a transparent, accountable, socially, and environmentally responsible supply chain. As a result, major retailers are now reviewing how they work, from operations and merchandising to hiring and HR practices.
Today’s market and consumer behaviour are more dynamic than ever before. Because of this, sales are no longer just about the quality of the product or accessibility; they are about what the company stands for. This sentiment is central for younger consumers. Research found that 75 per cent of Gen Z consumers will not buy from a brand that runs ad campaigns perceived as “macho, racist, or homophobic.”
Retailers must prioritise inclusivity, community involvement, and sustainability to stay competitive. By focussing on being socially conscious businesses, they can showcase their identity and increase customer retention & loyalty. This will also help in providing a more consistent customer experience.
Time for Change
Retailers have an enormous opportunity to help mitigate some of the adverse effects of consumerism by enforcing sustainable initiatives. Businesses must consider leveraging digital communication to bring users into marketplaces. Customers still love to get a feel of the product before buying. Nobody wants to make a purchase to return the product eventually. By incentivising customers to enter stores, retailers can provide an experiential in-store event that elevates their delight and ensures they purchase items in the right colour, size, units, etc.
Retailers catering to inclusive and sustainable consumer needs can expect more than increased loyalty and revenues. They may also gain advantages in other business areas, such as attracting and retaining top talent.
Consumers are changing the imperative for retail. Each unit plays a part – the retailers, the consumers, and the organisations. The evidence is overwhelming: the mindful consumer leads the pack. They influence organisations across demographics and vote for industries supporting sustainable entrepreneurs and their inclusive offerings. Companies across sectors are transforming their business models to shape a sustainable future, one that protects people, the planet, and profits.
(Krishnan Menon is the Merchant Relations Director at Pluxee India – a Sodexo enterprise)
