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Ten Stats That Show How Consumers Feel about Sustainability in Retail

Summary

1 Ten Stats That Show How Consumers Feel about Sustainability in Retail1.0.0.1 Top 10 Statistics from the Consumer Perspectives of Sustainable Fashion2 McDonald’s Dynamic Yield and McDonald’s: What does it mean for retailers?2.1 One key ingredient to achieving omnichannel retail […]

Ten Stats That Show How Consumers Feel about Sustainability in Retail

Nosto conducted an online survey earlier this year to learn about the perspectives of consumers on sustainability. The study revealed many interesting contrasts and insights that retailers should be aware of in order to keep up with this growing expectation.

 

According to the UNECE , 20% of the world’s water waste is currently produced by the fashion industry. This percentage can be offset by efforts made in the last year to improve sustainability in fashion. These efforts range from promotion of eco-friendly clothing brands such as Everlane and Reformation, to a French initiative led by Emmanuel Macron.

We conducted an online survey with 2,000 fashion consumers in April 2019 to gain a better understanding of how they feel about sustainability. The survey revealed many interesting contrasts and insights that retailers should be aware of in order to keep up with this growing expectation. These are the 10 statistics that were derived from this survey.

 

Top 10 Statistics from the Consumer Perspectives of Sustainable Fashion

1. 52% – More than half of respondents to the survey said that they want the fashion industry more sustainable.

2. Gender-based sustainability expectations are broadly the same for both men and women ( 55%)

3. It is common for all age groups to desire sustainability. This suggests a shift from the trend traditionally associated with Generation Z (18-24), and millennial consumers (25-34)

4. 50% consumers who want sustainable fashion would be more inclined to purchase clothes from companies that are committed to it.

5. 28% consumers will stop purchasing clothes from companies if they discover that the company isn’t committed to the cause.

6. Many consumers find it difficult to identify sustainable brands. 45%of respondents to the survey said it was difficult to identify which fashion companies truly believe in sustainability.

7. Only 23% consumers think they understand what fashion brands mean by being committed to sustainability when they say so.

8. 32% consumers will pay more for products from brands that are committed to sustainability.

9. 43% consumers want brands to show sustainable products more often on-site in order to personalize their shopping experience.

10. 75% of environmentally-conscious consumers want brands to reduce the amount of packaging they use.

McDonald’s Dynamic Yield and McDonald’s: What does it mean for retailers?

 

This unlikely pairing highlights a crucial point in the evolution omnichannel retail1-to-1 personalization has become a default layer for any shopping experiences that involve a digital interface. Even fast-food drive-thru, digital experiences can be found everywhere.

McDonald’s is embracing digital personalization at 14k+ U.S. restaurants to improve the brand experience for their 68 million daily customer base.

Steve Easterbrook, McDonald’s CEO, stated that Dynamic Yield was his main focus over the next months and years. He also said that he expects to see the technology at 1,000 McDonald’s restaurants within the next three-months. It will be available in the company’s 14,000 U.S. locations (and elsewhere) within the next few months.

McDonald’s stated that Dynamic Yield will continue to be run as a separate business. However, this poses a greater risk to current and potential Dynamic Yield customers.

Why is that? It’s a long-standing tradition of brands and retailers acquiring AI, personalization and marketing commerce technology companies, and then deciding to repurpose this technology internally. This has been seen with retailers like:

  • Walmart purchased Aspectiva (UGC platform technology platform) in order to provide customers with behavior-based product suggestions on- and offline.
  • Nordstrom purchased BevyUp (customer service messaging platforms), to connect employees at stores with customers, answer questions, and provide styling tips.
  • Ulta Beauty purchased QM Scientific (AI-powered shopping assistant and augmented reality services respectively) in order to make personalization using data from its loyalty program.

These technology companies could also have long-term negative consequences if they invest in large corporations like McDonald’s.

It’s not unusual for a technology subsidiary that is growing, but unprofitable, to have to drastically reduce their investment in client management, product support, and product development. Their P&L may be examined differently if Dynamic Yield reports to McDonalds.

Dynamic Yield is a retailer who is concerned about the success of my company. I have to ask:

What level of service will my business receive? What influence will I have on the technology used in my business? What level of support will I receive from the technology company owned by the biggest fast-food chain in the country?

 

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One key ingredient to achieving omnichannel retail success

Nosto has been at the forefront of major changes in digital commerce for years as merchants and entrepreneurs.

We believe that retailers need (and should expect) technology vendors to pay attention to their changing needs.

This means that you must remain committed to building technology solutions for customers. Focus on unique retail challenges. Take machine learning and actionability to a new level.

source https://www.nosto.com/blog/mcdonalds-dynamic-yield-acquisition-personalization/