Five earth-friendly retail trends in Asia

Advertising and digital marketing across Asia highlight the efforts brands are making to present themselves as climate conscious. Consumers are not easily won over. They are questioning the substance of the messaging. They want to know exactly what brands mean by sustainability, and why terms like low-carbon, carbon-neutral, zero-carbon, and net-zero are used interchangeably.

The concept of emissions transparency is advocated by McKinsey. It argues retailers should “start tracking emissions profiles at a product or subcategory level to help prioritize efforts to decarbonize and enable customers to make sustainable choices”. Investing in technology to make emissions information readily available and jargon-free will provide clarity.

Takeaways:

• Climate-aware consumers do not want sustainability to be used as a marketing tool, but as a clear statement of positive action
• Demonstrating real environmental benefits is preferred to soundbite climate jargon
• Building trust through transparency will create new engagement with consumers

Demonstrating leadership in clean solar energy can forge relationships with customers who are eager to learn about the transition to renewables. This can form part of an integrated climate action strategy. Retailers shifting to renewables to reduce their energy costs will also be expected to invest in reducing waste and eliminating plastic trash.

In Japan, Lawson will purchase reusable energy and develop solar installations to power its convenience stores, and Aeon is starting to convert 160 shopping malls to renewable electricity. In Singapore, DBS launched its first solar-powered ATM kiosk, which derives its energy from photovoltaic roof panels.

Takeaways:

• Consumers respond to retailers and brands that integrate renewable energies into their day-to-day operations
• Corrective climate initiatives build a positive world-of-mouth buzz on social media
• Transitioning to self-sufficient solar power is viewed as real progress toward creating planet-friendly retail environments

Tastes change and favorite flavors come and go, but consumers recognize that food chains must be less energy intensive. According to UNESCAP, food systems account for up to 37 percent of all greenhouse gas emissions through agricultural land use, transport, packaging, processing, retail, and consumption.

Across Asia, automated agritech combines artificial intelligence, drones, and analytics to improve crop cultivation. Low-energy refrigeration reduces the carbon cost of transportation. Japan’s Ministry of Agriculture, Forestry and Fisheries, and the Asian Development Bank are developing a Strategy for Sustainable Food Systems with regional targets for zero emissions in agriculture, sustainable import sourcing, and certified organic farmland.

Chinese dairy brand Yili debuted an organic milk product certified carbon neutral by Bureau Veritas, which is produced at China’s first zero-carbon food factory. In Singapore, slow-food brand SaladStop! opened the first net-zero dining outlet in Southeast Asia.

Takeaways:

• Consumers want net-zero implementation across a product's lifecycle, from procurement, production, and logistics to consumption and waste management
• Agritech innovations increase efficiency and cut wastage in fresh produce and ingredient cultivation
• Selecting a certified net-zero restaurant for lunch or dinner will be a developing trend

Recycling rates vary across Asia with some markets struggling to develop the infrastructure for processing used items and trash. Consumers are engaging with circular economy concepts that enable them to participate in waste prevention.

Start-ups and brands are launching upcycling projects that create functional and fashionable products, preserve resources and ease the pressure on landfill sites, which generate toxins and emissions.

Octopus in Indonesia collects recyclable items to produce “post-consumer products”. It records all reclaimed items and supplies the data to brands so they can track where, when, and how often their products are discarded. In Japan, fashion designer Ryohei Kawanishi created a bespoke line of clothing, bags, and hats by upcycling safety airbags from cars.

Meanwhile Swiss watch brand Maurice Lacroix’s new Aikon #tide collection, launched in March 2022, has incorporated sustainably sourced material which uses upcycled plastic waste recovered from oceans in Thailand, Indonesia, and the Philippines. The watch packaging is also made entirely out of ocean material and is designed to be re-used as a mug. With every Aikon #tide watch, Maurice Lacroix is helping to recover approximately 17 plastic bottles from the ocean.

Takeaways:

• Consumers engage with campaigns that help them reduce waste and deliver practical benefits to the environment
• Retailers and brands launching an upcycling initiative should clearly explain the carbon emissions savings
• Engaging customers at each stage of the project and providing post-campaign updates builds support and advocacy

Balancing on-demand convenience with low-carbon commerce is challenging. Asia’s growing love affair with app-based shopping will test the green credentials of consumers, brands, and e-marketplaces.

Demand for ever-faster order turnaround of online food and shopping purchases means environmental corners get cut. Round the clock buying and same-day deliveries create more motorbikes on the roads and more packaging for disposal.

In Vietnam, vehicle maker VinFast and delivery firm Ahamove jointly launched a new delivery service using only electric bikes. In China, logistics platform Cainiao has introduced a sustainably driven platform to help customers monitor and record their planet-friendly actions, such as recycling delivery boxes, to earn credits and incentives.

Takeaways:

• New gamified innovations will integrate personal sustainability challenges into the overall eCommerce chain
• Biodegradable packaging and waste management are emerging concerns for climate-aware online shoppers
• E-shoppers are showing greater interest in hyperlocal fresh foods cultivated near to home to cut the carbon cost of transport