The need for smart retail strategies to address the rise of conscious consumerism

The release of the Next-generation Retail Trend Report by Signify unveils a number of rapid transformations in the retail industry.

The innovative technology and interactive approach to consumer experience encourages ongoing sustainability benefits in store in response to the phenomena of conscious consumerism.

“Conscious consumerism involves businesses participating in the consumer economy in a way that is consistent with certain ethical and social values associated with the younger generations,” explained Michael Kardasis, Signify’s National Business Development Manager – Digital Solutions.

“The rise of conscious consumerism has become a significant retail trend.

“A trend that may be here to stay.”

As a result, businesses are required to consider smart retail strategies to reflect and meet the needs and desires of a growing customer base who are young and environmentally conscious.

Younger generations have influenced the global market by ensuring retailers adopt zero waste policies, vaunting the sustainability profiles of their stores, and making sure products are ethically and sustainability sourced.

This concept is supported by research released last year by IKEA which revealed that 85% per cent of Australians were concerned about climate change, igniting a myriad of initiatives to reduce their carbon footprint.

Findings from the Next-generation Retail Trend Report highlight that younger generations have put pressure on retailers to ensure economic justice is upheld throughout the entire supply chain process, and that companies should acknowledge the financial reward in upholding this assurance.

“Some retailers have adopted the use of track and trace technology to verify their supply chains to ensure that products are sustainable,” said Mr Kardasis.

“Other examples of this transparency include customers having the ability to scan a QR code and access information about where the product touched down and under what circumstances, who handled or processed it, and why.”

Large Format Retailers recognise the rise of conscious consumerism and have adopted environment and sustainable commitments that reflect the values of the brand and their customers.

For instance, IKEA Australia has committed that all home delivery vehicles will be electric by 2025, and Bunnings and Officeworks are working towards 100 per cent renewable electricity by 2025.

Conscious consumerism includes the notion of customers preferring locally sourced and manufactured products, indicating a considerate shift from globalised mass culture.

In response to growing consumer demand for locally sourced and manufactured products, Australian furniture and homewares retailer Freedom is expanding their range with an ambitious target to double their Australian-made sales by the end of the 2022/23 financial year.

E-commerce platforms around the world have also responded to consumer demand for brick-and-mortar stores.

Brands like Amazon are opening physical stores to supplement their online capability so people can buy products directly, speak with experts, and experience the merchandise.

Another smart retail trend and creative retail gambit is retail partnering with hospitality to showcase products.

For furniture brands, stocking a hotel with merchandise provides a unique showroom experience that is different from a traditional store.

“This form of soft selling introduces the brand and its products to a new market, allows guests to leisurely use the merchandise during their stay, and draw inspiration from how the hotel has displayed the products,” said Mr Kardasis.

“Sustainability continues to be the driving force in selling good business to the evolving values of the consumer,” added Mr Kardasis.

“The zero-waste movement, upcycling, recycling, and sustainable operations have become integral parts of retailers’ ethos.

“These changes represent the tip of the iceberg for next-gen retail, with conscious consumerism becoming more mainstream.

“It is critical for retailers to address and embrace conscious consumerism,” advised Mr Kardasis.