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1、INDEPENDEN T P U B L I C AT I O N BYRACONTEUR.NET17/07/2022#0817with the consumer.In many cases,they can become a trusted partner,”observes Rhiannon Thomas,partner and managing director at the Kearney consultancy.“Whats particularly inter-esting about the latest shifts is that re-tailers are looking
2、 to meet an end-to-end consumer need,rather than merely of-fering ser vices adjacent to their retail lines.”In John Lewiss case,its about provid-ing“all the services to create the best home for you,including the building.This is similar to Nike offering you all the services to motivate you to run,”s
3、he says.Given that such developments represent a radical form of brand extension,they need to sit well with the retailers existing offerings.Ikea uses solar panels to gener-ate much of the energy required by its stores,for instance,and it sells these products widely in Continental Europe and Austral
4、ia.The firms move into sup-plying renewable electricity therefore seems a logical and appropriate next step.Similarly,its not too much of a stretch to understand why chocolate retailer Hotel Chocolat might have chosen to build a hotel alongside its cocoa plantation on the Caribbean island of St Luci
5、a.Other brand extensions might seem more tangential,but they still make sense.For instance,menswear retailer Flannels has opened a fitness studio on the fifth Elastic brands:retails diversification driveFacing an increasingly uncertain future,several players are branching out,providing services rang
6、ing from rental homes and renewable energy to weddings and workouts.Are these extreme brand extensions a stretch too far?ven before the pandemic acceler-ated the ecommerce revolution,many British retailers were busy transforming their high-street stores into venues offering services and enhanced cus
7、tomer experiences as well as goods,seeking a level of engagement that could never be achieved over a smartphone.This trend has strengthened since the Covid trading restrictions were eased,as the sector faces new challenges that have driven some players to rethink their busi-ness models entirely and,
8、in some cases,venture boldly into uncharted territory.For instance,the John Lewis Partnership surprised many observers by announcing amove into residential property develop-ment.In June,it revealed plans to build ontop of two of its Waitrose supermarkets in Greater London and convert a vacant wareho
9、use in Reading into homes.These developments will form part of the UKs burgeoning build-to-rent market.The partnerships stated aim is to“raise standards in rental property,through our role as developer and our commitment to manage the buildings”.Last August,Ikea announced plans to sell renewable ene
10、rgy to domestic consu-mers,starting in Sweden.Ingka Group,which controls most Ikea stores,will buy solar-and wind-generated electricity on the Nord Pool power exchange and sell thison to customers without a surcharge.Selfridges,which opened a cinema at its Oxford Street branch in 2019,has recently o
11、btained a wedding licence,so that cus-tomers can go there to do more than simply buy an outfit for the big day.Packages range from the modest“Just the two of us”option through to the“All-out extraordi-nary wedding”,which includes a make-up appointment with the stores beauty con-cierge and hair styli
12、ng at its Daniel Galvin salon.The couple can make their vows atits wedding lounge before heading to a private room at the Brasserie of Light for a three-course meal with 20 guests.“Retailers occupy the envious position of having direct contact and engagement Simon BrookeA journalist with 25 years ex
13、perience of covering business and finance,the luxury sector and sustainability issues.Laurie ClarkeA freelance technology journalistwhose work has been published in the Observer and theNew Statesman Fiona DuffyAn award-winning journalist with more than 30 years experience.Health and fitness,consumer
14、affairs and crime are among her specialist subjects.Nick EasenAn award-winning writer and broadcaster,covering business,science and technology for Time,CNNand BBC World News.Amy NguyenA researcher and writer focusingon the nexus between sustainablebusiness,fashion andsupply chains.She is a regular c
15、ontributor to Forbes.Ana SantiA journalist with 15 years experience of writing about business,fashion and sustainability.She was formerly deputy editor at fashion industrymagazine Drapers.Paul SillersAn aviation journalist covering the experiential,economic,technological and environmental aspects of
16、 air travel.floor of its flagship store in Liverpool for customers whose interest in their appear-ance extends beyond their wardrobe.John Lewis certainly sees no incongru-ity in its move into the build-to-let market.“Delivering new rental homes is a natural extension of our heritage.Its what drives
17、us as a business,”says Chris Harris,the partnerships director of property,who points to John Lewiss expertise in provid-ing products such as white goods and fur-niture along with services such as home styling,contents insurance and individual savings accounts,which many people use to build a deposit
18、 for a home.“Most crucially,it allows us to play to our strengths of being a purpose-led,repu-table brand with high quality standards.We believe that these core values apply as much to letting homes as they do to retail.”A retailer offering financial services is nothing new,of course.Sainsburys Bank
19、 started life in 1997 as a joint venture bet-ween the supermarket chain and Bank of Scotland,for instance,before the former took full ownership in 2014.But there hasbeen a fresh influx into this sector in recent years with the growth of embedded finance integrated services that enable customers to p
20、ay for their products seam-lessly.UK brands expect to generate 230bn from these services over the next five years,according to estimates by em-bedded finance provider OpenPayd.The concept of a retailer that offers everything is something that dates back to the heyday of the department store in the l
21、ate 1800s and early 1900s.Today,Amazon is following in this proud tradition.Having transformed from an online bookseller to a general retailer,the etail behemoth is using its considerable heft to enter sectors ranging from commercial insurance to medical care.Such diversification is not without its
22、dangers,notes Professor Adrian Palmer,head of marketing and rep-utation at Henley Business School.“Management time may be-come focused on a large number of peripheral problem business-es,diverting attention away from the core enterprise,”he says.“If a company is strug-gling in its main market when o
23、ther players are succeeding,the question must be asked whether that business has the management talent to cope in sectors that are less familiar to it.”Palmer points out that a hasty and poorly focused expansion would put a strain on any enterprise,however well resourced.“In the late 1980s,for examp
24、le,Next came close to collapse after it had diversified too quickly into non-core activities,includ-ing travel services and wallpaper manufac-turing,”he says.Buffeted by problems such as high infla-tion,staff shortages and disrupted supply chains,retailers are taking a risk and doing some impressive
25、ly innovative thinking to refresh and,in some cases,reinvent them-selves.But,as ever,its largely down to the consumer to decide whether their bold gambits will prove successful or not.Distributed inPublished in association withAlthough this publication is funded through advertising and sponsorship,a
26、ll editorial is without bias and sponsored features are clearly labelled.For an upcoming schedule,partnership inquiries or feedback,please call+44(0)20 8616 7400 or e-mail .Raconteur is a leading publisher of special-interest content and research.Its pub-lications and articles cover a wide range of
27、topics,including business,finance,sustainability,healthcare,lifestyle and technology.Raconteur special reports are published exclu-sively in The Times and The Sunday Times as well as online at .The information contained in this publication has been obtained from sources the Proprietors believe to be
28、 correct.However,no legal liability can be accepted for any errors.No part of this publication may be reproduced with-out the prior consent of the Publisher.Raconteur Media/future-retail-2022raconteurraconteur_londonFUTURE OF RETAILS U S TA I N A B I L I T YS T R AT E GYF U L F I L M E N TCircular e
29、conomy schemes face scrutiny How to thrive in the midst of a recessionWhy delivery by drone is taking ContributorsHOW ARE RETAIL BUSINESS LEADERS FEELING ABOUT THE FUTURE?Global retail executives expectations for their firms operating margins this year compared with 2021 In the late 1980s,Next came
30、close to collapse after it had diversified too quickly into non-core activitiesS E R V I T I S AT I O NCampaign director Emma LuddittDeputy editorFrancesca CassidyHead of productionJustyna OConnellDesign/production assistantLouis NassManaging editorSarah VizardReports editorIan DeeringSub-editorsNei
31、l Cole Christina RyderDesignKellie JerrardCelina LuceyColm McDermottSean Wyatt-LivesleyDesign directorTim WhitlockIllustrationSamuele MottaEDeloitte,2022Deloitte,202254%of retail executives anticipate year-on-year sales revenue growth of up to 5%in 202232%anticipate growth of 5%or more14%anticipate
32、either no change or a decline in sales revenueLowerStableHigher38%30%32%Simon Brookeraconteur-mediaF U T U R E O F R E TA I L02DisagreeNeutralAgreeNot sure/dont knowHOW OPEN ARE BRANDS ABOUT THEIR SUPPLY CHAINS?Percentage of global fashion brands that disclose details about their first-tier manufact
33、urersPublish a list of their first-tier manufacturers47%Disclose at least 95%of their manufacturers29%Include their manufacturers contact details44%Disclose any certifications held by a manufacturer5%7%Disclose whether a manufacturer has a trade unionInclude a gender breakdown of their factory worke
34、rs21%Disclose annual carbon footprint of their own operations62%Publish science-based targets26%Disclose a time-bound and measurable sustainable materials strategy44%Disclose their annual carbon footprint at a raw material level17%Define what they consider to be a sustainable material30%Report on th
35、eir progress towards eliminating the use of hazardous chemicals31%10%Publish a time-bound and measurable commitment to zero deforestation HOW THE INDUSTRY IS PROGRESSING TOWARDS NET ZEROPercentage of global fashion brands that are transparent about their environmental impact12%14%of executives in th
36、e global fashion industry see sustainability as the biggest opportunity for growthsee sustainability as the biggest challenge67%65%of Black employees in the fashion industry report experiencing micro-aggressions at workof LGBTQ+employees report experiencing micro-aggressions at work11%5%of global fa
37、shion brands disclose selected raw material suppliersof disclosures cover more than one raw material typeMy company is doing what it takes to improve racial/ethnic DE&IMy company is doing what it takes to improve gender DE&IThe best opportunities go to the most deserving employeesFashion Revolution,
38、2021Fashion Revolution,2021Fashion Revolution,2021McKinsey and Business of Fashion,2022Council of Fashion Designers of America and PVH,2021NOT QUITE A MERITOCRACYBreakdown of responses from employees to the following statements about diversity,equity and inclusion(DE&I)initiativesCouncil of Fashion
39、Designers of America and PVH,2021Fall 2022Spring 2022Fall 2021Spring 2021Fall 2020Spring 20202505075100Plus-sizedOver-50Transgender and non-binaryNOT ALL PROTECTED GROUPS ARE FLOURISHINGNumber of plus-sized,over-50,transgender and non-binary models present on global Fashion Weeks runways since sprin
40、g 2020The Fashion Spot,2022200021202220%10%50%40%30%SpringFallRACIAL DIVERSITY ON THE CATWALK IS IMPROVING Percentage of models of colour on Fashion Week runways in New York,London,Paris and Milan combined The Fashion Spot,2022S U P P L Y C H A I N T R A N S P A R E N C YS U S
41、T A I N A B L E P R A C T I C E SF A I R N E S S I N T H E F A S H I O N W O R K F O R C ETRENDS FORGOODThe fashion industry has never been known for its ethical credentials,butmany retail brands have been working hard to change the publics perceptions.A look at the sectors recent record in areas ra
42、nging from sustainability to racial equality gives an idea of the progress being madeR E P R E S E N T A T I O N O N A N D O F F T H E R U N W A Y20%9%10%13%14%8%9%10%8%58%67%74%R A C O N T E U R.N E T03Commercial featuresustainable,bar the carbon footprint of its data centres.By contrast,the back e
43、nd of the operation is built upon mostly physical assets,such as materials,machines,factories and vans.Here,the sustainability challenge is tougher and any disconnect between front and back under-mines a brands ethical and eco credentials.Innovation that can help reimagineSo,to provide the evidence
44、base for intelli-gent sustainability improvements,real-world operating data is a must.This is why Smurfit Kappa uses insights from more than 90,000 supply chains and 130,000 consumers to inform its omnichannel design process.The upshot is that success in this sus-tainability space is often manifeste
45、d in seemingly small,but significant innova-tions,such as the child-proof TopLock Box,which sits in the Smurfit Kappa Better Planet Packaging portfolio.Being renewable,recyclable and biode-gradable,as well as safe and convenient,the TopLock is an example of a popular pack-aging product reimagined to
46、 provide a sus-tainable paper-based alternative to the rigid plastic laundry pod detergent box.Packaging gets smart on sustainabilityWith brand owners under pressure,packaging providers are investing in innovations which can help retail to future-proof delivery without compromise and greenwashingor
47、UK retail,the 2020s have so far proved a decade of disruption,with markets and supply chains hit hard.First Covid,then the conflict in Ukraine,have made it difficult not only to get the shoppers to the goods,but also to get the goods to the shoppers.As a result,a lot of tough questions have been ask
48、ed of solution providers in the pack-aging sector.In response,the industry has increasingly looked to smart design to help provide the answers,says Arco Berkenbosch,vice-president for innovation and develop-ment at Europes leading corrugated packag-ing company,Smurfit Kappa.“Smart design seeks to ne
49、gotiate a prod-uct path between the complex,often con-flicting,demands of efficiency and flexi-bility.In this way,smart principles help us respond to the two megatrends driving the retail packaging agenda at present:agility and sustainability.”Agility built on security of supplyWhen it comes to agil
50、ity,retail customers faced with market shocks and business risks are really looking to their packaging suppliers for reassurance Berkenbosch suggests.“Priorities have changed.Pre-pandemic,for instance,security of supply was typi-cally little more than a nice-to-have in the packaging industry.While w
51、e all had contin-gency plans,they almost never got called into play.Now,dependability has become a key differentiator.”This fresh emphasis on future-proofing and resilience has sparked something of a trade-off,in terms of a relaxation of spec-ification requirements for the sake of flex-ibility,he ad
52、ds.“As long as a product performs,custom-ers are now more likely to allow the packaging company to pick the specification,for exam-ple.Before,they might have micro-managed the spec right down to the last detail;today,there is some wiggle room,some flexibility.This shift has partly been driven by a n
53、eed for speed.The beer,wine and spirits trade is an example of a sector that was forced by lockdown restrictions to switch to online sales almost overnight,in a bid to mitigate the impact on turnover and revenue.Overall in 2020,official UK government figures for total retail sales showed volumes shr
54、ank by 1.9%year-on-year,representing the largest annual fall on record.At the same time,online sales rose to a record high of 33.9%as a share of all retail spend.To add to the global economic pressure on brand owners and FMCG leaders to develop a responsive approach to design and man-ufacturing,ther
55、e has also been the influ-ence and impact of disruptors to consider.Startups can prove quicker at getting prod-ucts to market and better at adapting to pro-cess shifts.So,to boost the responsiveness of bigger brands and under-pressure industry players,Smurfit Kappa made a significant investment in i
56、ts new Design2Market Factory.A potential game-changer for companies in a race to release products on ecommerce platforms such as Amazon and Alibaba,this unique facility creates a fast and seamless development process from packaging design through to market launch.It provides rapid prototyping for pi
57、lot pro-duction,combined with industry-leading packaging performance analysis and field-lab facilities,all under one roof.Sustainability from front to backAlongside agility,the other global megatrend moving markets is sustainability.Brand owners are experiencing not only the pull of consumer demand,
58、awareness and activism,but also the push of regulation and policy initiatives such as the EU Green Deal.In principle,therefore,it is critical for retail players to partner with packaging pro-viders who are fundamentally aligned on the sustainability agenda,with the numbers to prove it.Smurfit Kappas
59、 most recent launch,AquaStop,offers another example of sus-tainable high-performance innovation at work,being water-resistant,as the name suggests.End-to-end cultural shiftUltimately,though,delivering sustainabil-ity at speed and scale is not merely a matter for tech,important as that may be.From re
60、d tape and recycling infrastructure,to end-user education and behaviour change,true change is systemic,concludes Berkenbosch.“Whats needed is an end-to-end cultural shift to move to more sustainable packaging solutions that are smarter by design.These must still deliver agility in terms of efficienc
61、y and flexibility,but also a cleaner and greener environment,that is built on affordable energy and responsible sourcing,for a better quality of life overall,for everyone.”For more information,visit At Smurfit Kappa,the sustainability per-formance is there for all to see.Working towards at least net
62、-zero-emis-sions by 2050,the company has already achieved a 41.3%reduction in CO emis-sions since 2005(as validated by KPMG)and is on target to hit 55%by 2030,validated by the Science Based Target initiative(SBTi).SBT validation provides Smurift Kappa with confirmation that its CO target is not only
63、 ambitious as a stand-alone target but also aligned with the Paris Agreement objec-tives and the recommendations of the latest climate science findings.On responsible and sustainable sourcing,Smurfit Kappa can also provide evidence that 93.45%of the packaging solutions sold to customers in 2021 were
64、 chain of custody certified.Plus,the company is on target to deliver a 30%reduction in waste sent to landfill by 2025.In practice,however,the sustainability picture gets bigger and more complex.A fundamental disconnect is emerg-ing in the rapidly evolving retail model.Driven by digitalisation and di
65、sruption,the front end is an increasingly virtual,online sales engine perceived as relatively F Smart design seeks to negotiate a product path between the complex,often conflicting,demands of efficiency and flexibilityRunning low on creditroviders of buy-now-pay-later finance achieved blockbuster va
66、l-uations on a wave of pandemic-fuelled hype last year,sending everyone from high-street banks to tech giants scrambling to market their own BNPL offer-ings.But growing regulatory pressure and soaring inflation in the UK are starting to pose serious problems for the sector.Could it be the service pr
67、oviders,rather than the users,who will ultimately pay later?The surge in ecommerce prompted by 2020s Covid lockdowns helped the BNPL market to gain serious momentum.It dou-bled in value to 5.7bn in 2020-21,accord-ing to estimates by the Financial Conduct Authority,as more and more enticing buttons a
68、ppeared on etailers checkout pages inviting customers to pay for their purchases by interest-free instalments.Stagnating wages and the return of high inflation have since caused a cost-of-living crisis that has forced millions of British consumers to tighten their belts this year.In April,the Office
69、 for National Statistics recorded the first monthly decline in retail sales for 15 months.“People are spending less on items such as clothing,which has been a big driver of BNPL profitability,”reports Benedict Guttman-Kenney,a PhD student at the University of Chicago who has been study-ing the secto
70、r for his economics doctorate.As well as limiting the retail activity thats the lifeblood of the BNPL sector,the cost-of-living crisis has caused concern that a wave of defaults is approaching as growing numbers of consumers find them-selves unable to make their repayments.Atthe same time,rising int
71、erest rates are pushing up providers operating costs,while the sector attracts greater regulatory attention amid claims that it ensnares young people in debt.Last June,Klarna was valued at$46bn(39bn),making it Europes most valuable private fintech firm,but the Swedish com-pany is now seeking new fin
72、ance at less than half that valuation,having recently announced its intention to lay off 10%of its workforce.Meanwhile,the share price of rival Affirm has tumbled 80%this year.The cost-of-living crisis could boost demand for BNPL services,but uptake may be more focused on essential,rather than discr
73、etionary,spending.Some providers have steered away from this category,but firms such as Zilch enable customers to spread payments for groceries and even energy bills.Indeed,Zilch was recently criticised for encouraging consumers to pay for basics such as supermarket pizza over several weeks.Retailer
74、s appetite for BNPL is based on the promise of improved sales volumes.Providers argue that they help consumers manage their spending more effectively and offer better terms than credit cards(several of which have been charging inter-est rates exceeding 20%).But critics say that they can still trap c
75、ustomers in a debt spiral,and that BNPLs sheer ease of use means that many people dont even realise theyre becoming indebted.“This trend gets worrying when you see reports that increasing numbers of cus-tomers are using BNPL to cover essential purchases,”notes Hannah Hilali,industry strategist at fi
76、ntech consultancy 11:FS.A YouGov poll of BNPL customers on behalf of debt advice charity StepChange last October found that 49%of respond-ents were struggling to keep up with house-hold bills and other debt repayments.And research published by Citizens Advice this June found that more than 20%of rec
77、ent BNPL customers had been obliged to borrow money to make their repay-ments.There are concerns that the situa-tion will worsen in the coming months as the financial pressure on consumers shows little sign of easing.A surge in defaults would be painful for BNPL providers,given that most of them don
78、t charge interest or late-payment fees that they could use to offset the damage.They make their money by charging retail-ers a fee for each transaction.And then there is regulatory uncer-tainty.Westminster is planning to require lenders to perform affordability checks on BNPL applicants,but such leg
79、islation is unlikely to be enacted until next year.In the US,meanwhile,the Consumer Financial Protection Bureau has ordered,Affirm,Afterpay,Klarna,PayPal and Zip to disclose information about their com-mercial practices.“The longer this goes on,the more uncer-tainty there will be about what the rule
80、s are going to be and how they will affect businesses,”Guttman-Kenney says.The cost-of-living crisis and the prospect of tougher regulation are taking the gloss off the market for buy-now-pay-later finance,but that hasnt deterred a slew of recent entrantsYet the gathering storm clouds havent dissuad
81、ed new players from entering the market.Apple recently became a notable challenger in this sector,alongside an increasing number of retail banks.Barclays,Monzo,NatWest,Revolut and Virgin Money are among those offering,or planning to offer,new products featuring instalment repayments.How can these co
82、mpanies avoid the worst ramifications of the looming default crisis?“One approach could be to stop giving credit to really high-risk people,because theyre too risky to lend to in this environ-ment,”Guttman-Kenney says.Klarna,which decided to strengthen its credit checks in the UK at the end of last
83、year,intends to share information with credit reference agencies Experian and TransUnion.Such moves wont mitigate the effects of inflation and recent increases in the Bank of Englands base rate on BNPL providers operating costs,of course.“Another option for them would be to pass their extra costs on
84、 by increasing the cut they take from retailers,”Hilali says.Laurie Clarke A lot of fintech companies are altering their business models or exploring new ones to stay afloatBut,while BNPL providers have typi-cally charged merchants between 3%and 6%commission on every transaction,Klarnas CEO,Sebastia
85、n Siemiatkowski,told Bloomberg in January that intensify-ing competition in the sector meant that retailers were no longer so content to pay thetop rate.Because most BNPL firms dont charge customers interest,a fresh approach may be warranted,according to Hilali.“One of the wider trends were seeing i
86、s that a lot of fintech companies are altering their business models or exploring new ones to stay afloat,”she says.A study published last October by equity research house Redburn indicated that profit margins in the BNPL sector were wafer-thin or non-existent even while the market was booming.The r
87、esearchers sug-gested that providers would have to expand into all-purpose digital wallets to ensure their survival.Hilali notes that she has seen several players,including Klarna and Afterpay“evolving to focus on solving adjacent customer needs,such as building shopping experiences around their pro
88、ducts”.Highlighting the importance of Visas and Mastercards instalment products in enabling firms to launch their own BNPL offerings,she adds:“I think were about to see a lot of companies enter such partner-ships across the world.”Notwithstanding the prospect of more stringent regulation,the BNPL re
89、volution could still be in its infancy,according to Guttman-Kenney.“Im pretty confident that its going to survive this crisis,”he says.“The sector has very attractive eco-nomic and psychological factors to both consumers and retailers.”PAY M E N T SPnimis69 via iStockNONE OF THE BNPL LEADERS HAVE BE
90、EN MAKING A PROFITPre-tax losses of the top three pure-play BNPL businesses($m)Affirm201920202021KlarnaAfterpay-127-108-379-408-167-115-23-3-123Redburn,2021F U T U R E O F R E TA I L04A 360-degree reappraisalCircular economy initiatives ranging from take-back programmes to rental services are enabli
91、ng fashion retailers to enhance their green credentials.But how effective are such schemes in reality?he task of establishing a circular fashion economy is widely accep-ted as vital,given that a truckload of textiles is being incinerated or buried every second,according to a global esti-mate by the
92、Ellen MacArthur Foundation.The charity has also calculated that the under-use of clothing and lack of garment recycling costs the global economy more than$500bn(420bn)a year.The longer-term price paid by the environment is likely to be far greater.The microplastics that the synthetic fibres in our c
93、lothing shed when washed have been found in human blood,placenta and,most recently,fresh snow in the Antarctic.Developments such as the EUs circular economy action plan of 2015 and the UKs circular economy package of 2020 have prompted many fashion retailers into act-ion.The EU strategy for sustaina
94、ble and circular textiles,published this March,also stressed the importance to the industry of acredible long-term strategy for durability,recycling and waste management.In June,Boris Johnson even promised 80m of public funding to help establish a“circular fashion model”.But critics of the industrys
95、 historically profligate practices argue that circularity has become a mere buzzword,used by com-panies seeking to apply a coat of greenwash over their continuing wasteful ways.Clothing take-back programmes have become central to the circularity drive.The Waste&Resources Action Programme(Wrap)charit
96、y estimates that such schemes adopted by the likes of H&M,M&S and Primark prevented 620,000 tonnes of used textiles from ending up in UK landfills in 2018.H&M has reported that its“Close the loop”recycling and repairing initiative collected 18,800 tonnes of unwanted cloth-ing in 2020.Juliet Lennon,p
97、rogramme manager at the Ellen MacArthur Foundation,says:“Rental,resale,remake and repair have the potential to make up 23%of the global fashion market by 2030,representing a$700bn opportunity.”Retailers work with white-label services such as Yellow Octopus and I:CO,which sort garments into categorie
98、s for reuse or recycling.In theory,such innovations are welcome,yet not all clothes collected are suitable for either process.I:CO,a partner in H&Ms take-back programme,recently reported that 8%of what it received was neither reusable nor recyclable and would therefore have to be incinerated.More co
99、ncerning is research published by Greenpeace in April,which claimed that no more than 30%of used clothes are stay-ing in the country of donation.Much of the remainder is sent to countries in the Global South,where it often ends up“on huge dump sites,on open fires,along river-beds and washed out into
100、 the sea”.Kantamanto Market in Accra,Ghana,illustrates the scale of this problem.About 15 million garments enter the marketplace every week.Some of these can be used to support the local textile industry,but re-searchers estimate that 40%of the items are of such poor quality that they are deemed wor
101、thless on arrival and are either buried or burnt.Viola Wohlgemuth,a campaigner for Greenpeace Germany,says that countries such as Ghana“dont have the infrastruc-ture to cope with the large volumes of tex-tiles that are arriving,even if all of them were reusable”.The large-scale dumping of unwanted t
102、extiles is creating a socioeconomic and ecological crisis for local communities.The waste material is a health hazard,as its de-composition not only releases microfibres into watercourses but also produces dan-gerous levels of flammable methane gas.Moving clothes from one country to an-other is by n
103、o means circular.The practice simply shifts the burden to a territory with less capacity to handle it and weaker envi-ronmental laws.Chile,for instance,has long been a hub for used and unsold gar-ments from all over the world.The port city of Iquique accepts nearly 60,000 tonnes a year,but less than
104、 half of this material is experiences have led her to conclude that“the system is not working”.Transparency is key to encouraging par-ticipation in any sustainability initiative.A recent Wrap poll found that 42%of consum-ers deemed it important to know the likely destination of their donated garment
105、s.“When people give back clothes,they expect these items to be reused,to raise money for charity or to benefit people that need them,”Wohlgemuth observes.“They wouldnt expect them to end up in huge,overflowing landfills in Africa.”Some retailers run incentive schemes that offer customers discount vo
106、uchers for donations,but such measures have drawn criticism for fuelling further consumption,which works counter to the circular eco-nomy.There has been“little evidence of plans to reduce the flow of fashion a pre-condition for any meaningful attempt at circularity”,Wohlgemuth argues.When donating c
107、lothes or buying sus-tainable garments made from recycled polyester,consumers should proceed with caution,she adds.Regulations such as the UK Competition and Markets Authoritys Green Claims Code are designed to prevent companies from making misleading state-ments,but Wohlgemuth believes that“most ci
108、rcularity claims are greenwashing.Amy Nguyen Most circularity claims are greenwashing.Fewer than 1%of clothes produced are actually made from recycled textilesCommercial featureHappy warehouse employees:the key to better retailFulfilment is an increasingly important part of the retail landscape but
109、all too often it is left to robots to sort-to the detriment of quality,efficiency and customer service.he rapid expansion of the ecom-merce sector since the onset of the pandemic has led to ever-growing retailer reliance on the fulfilment industry to get products into the hands of consum-ers.Unfortu
110、nately,because consumers are demanding faster,free delivery and speedy returns for their purchases,the industrys response has been to push untrained ware-house staff to walk further and work harder in repetitive,manual roles.At the same time,to create cost sav-ings and make free delivery more viable
111、,many fulfilment companies have moved to replace human problem-solving and personalised service with crude automa-tion and basic robotics.All thats left for the human employees is monotonous and unfulfilling work,which is why the industry is blighted by an increasingly dissatisfied and transient wor
112、kforce to the detriment of quality,efficiency and customer service.Consequently,ecommerce providers are finding themselves unable to speak to another human when they need to resolve a pressing fulfilment problem,try out a new sales channel or introduce a new product line.Not only is this a frustrati
113、ng day-to-day experience,but it is also stifling innovation,as retailers regularly find themselves bat-tling a computer says no mindset.Thankfully,one UK-headquartered fulfil-ment company,Huboo,is boldly bucking the trend and turning the fulfilment model on its head.The company has created a micro-h
114、ub model that replicates the functionality of a complete warehouse within as little as a few hundred square feet.It gives warehouse employees the freedom to work quickly and intelligently on a set client portfolio,under-taking more engaging,varied and empower-ing work,while benefitting retailers by
115、ensur-ing they deal with the same warehouse team members each time.“More rewarding warehouse roles make for happier humans,which has huge benefits for the retailers we serve.Unlike traditional warehouse roles,our employees have real responsibility.They know a retailers prod-uct offering inside and o
116、ut,meaning that they can spot any problems with products arriving into the hub and work with retailers directly to solve any issues they face,”says Martin Bysh,CEO and co-founder at Huboo.“Whats more,our human-centred approach allows us to offer bespoke kitting and packaging requirements across even
117、 the most diverse product lines,meaning we can adapt and flex to meet the needs of side hustlers and established large-scale busi-nesses alike.”A crucial differentiator between Huboo and traditional fulfilment companies is that,rather than striving to replace human work-ers,Huboo applies technology
118、to enhance the effectiveness of its employees.“We use technology to empower our work-ers to take ownership of their roles and enjoy more meaningful day-to-day work.We turn to robots for the manual,repetitive tasks that we know arent rewarding for staff,such as stock checking or moving inventory out
119、of deep storage onto the warehouse floor,”adds Martin.Huboos business model successfully challenges the assumption that machines can out-pace and out-think humans in a warehousing environment and demon-strates that over-reliance on technology is not a smart way to drive cost and time effi-ciencies.T
120、he superior precision of human workers is shown by Huboos picking accu-racy rates of 99.9%,significantly higher than the industry average.The companys human-centric approach puts its people at the heart of its warehousing strategy,aug-mented by great technology,and it is the combination of these fac
121、tors that keeps Huboos logistics costs competitive.Huboos bottom line is proof of the suc-cess of this approach the company is tipped to become a future Unicorn,with its valuation predicted to exceed$1bn later this year.In little over a year it has increased its UK footprint and opened in three new
122、countries-and is eyeing further global expansion in 2022.But its success is per-haps best reflected in its client churn rates,which have remained consistently near zero from day one a remarkable achievement in a logistics industry renowned for its high client dissatisfaction and low retention.To fin
123、d out more,visit T More rewarding warehouse roles make for happier humans,which has huge benefits for the retailers we serveS U S TA I N A B I L I T YT23%of the global fashion market could consist of circular business models(resale,rental,repair and remaking)by 2030Fewer than 1%of clothes produced a
124、re actually made from recycled textiles.”Sarah Gray,senior analyst for textiles at Wrap,recommends that companies build“a solid evidence base to ensure that they can verify details on recycled content to make certain that their claims about circu-larity are truthful”.Genuine and effective circular i
125、nitiatives call for higher standards of reporting on supply chain risks;efficient monitoring systems;investment in technology to en-hance transparency;and legally compliant collection processes.Lennon believes that“economic and regulatory incentives are needed to increase the viability of circular b
126、usiness models,as voluntary commit-ments by industry leaders alone will not achieve the scale required”.Retailers should focus on consistency too.Any firm thats vocal about plastic packaging as part of its circularity drive,yet doesnt publicly disclose the volume of synthetic material in its collect
127、ions,should reconsider its approach,for instance.Doing so will be key to its long-term survival.Opaque reverse-logistics operations and half-hearted circularity initiatives are leaving companies vulnerable to several ESG risks and investors,if not consumers,are watching them closely.Ellen MacArthur
128、Foundation,2022s the metaverse going to be the next big thing for retail-ers?Before answering that question,lets first work out what the metaverse actually is and,perhaps just as crucially,what it isnt.A key point to understand is that the metaverse is not an entity in and of itself one you can see
129、and isolate,with a clear beginning and end.Rather,it refers to the evolution of what we call the internet into some-thing thats generally more immer-sive.In practice,that means greater use of virtual and augmented reality and,yes,in some cases,avatars.The thing you will note is that none of these co
130、ncepts is particular-ly new.Virtual reality has been around for decades;millions of peo-ple use augmented reality every day through Snapchat filters;and gam-ing has long made use of avatars.So why all the stink about the metaverse now?Is it really the next big thing and what has it got to do with re
131、tail?At the risk of someones avatar saying to me in 10 years time“do you remember when you said”,I always regard the next big thing in retail with a hefty scoop of scepticism.In my role,I speak to an awful lot of people and there have been an awful lot of next big things over the years some of which
132、 youve heard of;others,believe me,you havent.The main problem with next big things is that,by definition,they tend not to have happened yet.We see all the buzz,the excited chatter and the artists impressions of how a certain development is set to enrich peoples lives,why well all find it irresistibl
133、e and so on.Much of that hype tends to come from those with a vested interest in its success.Enter Facebook.Or,to give the com-pany its updated moniker,Meta.When one of the worlds largest companies is the main driving force behind the buzz,you might assume that the metaverse is a done deal.The truth
134、 is that the hi-tech highway is littered with broken-down next big things.Consider Google Glass,which never got going at all.Or 3D printing,where wewere going to create all our own products at home without any intervention frommanufacturers or retailers.Or Amazon Alexa,which was set to change how pe
135、ople search retail sites for products but in reality is just used for setting timers and playing music.And now we are getting to the crux of the problem with next big things.Maybe we will all be wearing Google Glasses in 2030 and some of the technologies mentioned above will have found practical app
136、lications.Buy-now-pay-later solutions were around back in 2010,but they didnt enter the mainstream until Klarna arrived.The key point Im making is that the use case for them isnt al-ways immediately evident.You can put this technology out there and make it easily accessible,but do people understand
137、it?Do they need it?Is it actually helping them in the context of their lives?In short,does anyone care?Those use cases might vary wildly by industry.In gaming,for instance,it is straightforward enough to iden-tify.Using augmented reality to walk around museums and other exhibits on the other side of
138、 the planet might work.In retail,though,it can be easy to make mistakes.Some companies will probably get their approach to the metaverse right and so reap the rewards.But firms should be wary when doing something specifically because its viewed as the next big thing especially when someone on the bo
139、ard decides its a good idea without putting a well-considered,measurable strategy behind it.Will the metaverse come to mean something genuinely transforma-tional for retailers or,in a practical sense,are we just talking about sell-ing non-fungible tokens here?You can put technology out there and mak
140、e it easily accessible,but do people actually need it?Andy Mulcahy Strategy and insight director,IMRGI N S I G H T SISTORYPLUS via GettyImagesWaste material from a garment factory dumped in a canal in Dhaka,BangladeshAndy Mulcahy of UK ecommerce association IMRG discusses whether the metaverse will
141、really deliver onthe promises its making for retailersbought by merchants for resale.The rest is simply dumped in huge mounds in the sur-rounding Atacama Desert,where it could take two centuries to biodegrade.Wohlgemuth recounts a recent visit to Gikomba,Kenya,where she found herself walking along t
142、he banks of the Nairobi River and realising that they mostly com-prised piles of textile waste,from which garments would fall and be swept down-stream.Its hardly surprising that such R A C O N T E U R.N E T05brands have become some of the most notable early players in the metaverse.“The sectors inte
143、rest in gen Z is one of the key fac-tors driving this behav-iour.The metaverse is a new virtual playground with serious longevity for this group,as well as tomorrows consumers,”he predicts.“Experimenting with metaverse and crypto activations gives brands relevance and enables them to tap into new au
144、diences.”Gucci has been particularly active in the metaverse,most recently with the release of a set of NFTs called Gucci Grail.Minted on the ethereum blockchain,this is the result of a collaboration between thebrands creative director,Alessandro Michele,and fictional“famed digital craftsman”Wagmi-s
145、an.Selfridges has announced that it will sell NFTs and digital fashion in its store on Oxford Street,London,with prices ranging from 2,000 to more than 100,000.The inaugural Metaverse Fash-ion Week was held at the end of March in Decentraland,a browser-based virtual re-ality platform that uses a cry
146、ptocurrency called mana.Burberry has announced a partnership with Mythical Games to create an NFT col-lection inside the latters flagship product,Blankos Block Party,an open-world multi-player game.Burberrys limited-edition Blanko(character),Sharky B,is an NFT that can be bought,upgraded and sold wi
147、thin the games marketplace.Alongside this,the brand is launching its own in-game NFT accessories,including a jet-pack,armbands and pool shoes,which players can put on to any Blanko they own.“When it comes to the fashion industry,NFTs can be the digital versions of physi-cal pieces of clothing or a o
148、ne-off digital-only design.This can be anything from a whole outfit to a pair of digital shoes,ahandbag or even earrings,”says James Gaubert,founder and creative director of Republique,which describes itself as a“metaverse-ready”fashion house.WILL THE LUXURY SECTORS ETAIL SALES CONTINUE TO GROW?Perc
149、entage of luxury goods sales transacted online and offline from 2017 to 2025 Statista,2021What role can the retail industry play in improving diversity,equity and inclusion in the workplace?Retail has long provided a unique environment in which diversity and inclusion can thrive.It is a dynamic,agil
150、e and innovative industry that has always attracted a varied workforce.It is often the first step into the world of work for peo-ple and it can be a perfect choice for those with caring responsibilities who are seeking part-time work to fit around their lifestyles.This workforce diversity is vital w
151、hen it comes to responding to the changing needs of consumers.Pres-sure is mounting on employers to ensure that promoting equality is entrenched into business practices.It is no longer good enough to consider simply diversifying the leadership level and then expecting a permanent change to unfold th
152、roughout the rest of the industry.That is why the British Retail Consortium has produced a diversi-ty and inclusion charter,which has gained the support of more than 60 retailers.This makes a commitment to improving the retail employment landscape and making that a lasting change.The charters pledge
153、s focus on oversight,recruitment,progres-sion,reporting,inclusivity and re-sponsibility.They are designed to help all retailers challenge their cul-ture and biases holistically and embed diversity and inclusion into all facets of their businesses,there-by making our industry as vibrant,creative and
154、innovative as it can be.The rising cost of living is one of the biggest concerns for retailers right nowHelen Dickinson CEO of the British Retail ConsortiumI N S I G H T SPrint media cant generate leads.WWr ro on ng g.Some of the advertisers in this report will generate over 200 leads thanks to Raco
155、nteurs integrated print and digital campaigns.Email to find out more.Experimenting with metaverse and crypto activations gives brandsrelevance and enables them to tap intonew audiencesMeet the luxury brands testing out the metaversehe luxury sector is determined not to make the same mistake again.It
156、 generally regarded the internet with suspicion when the ecom-merce revolution started in the late 1990s.Most luxury brands took several years to understand its potential before rushing to catch up with the rest of the retail world.Regular global studies of the personal luxury goods segment by Bain&
157、Company have charted the increasing importance ofecommerce.Its research indicates that the proportion of online sales more than tripled from 7%in 2017 to nearly 22%in a pandemic-boosted 2021.Having learnt from bitter experience,most luxury brands are determined not to be left behind by the latest di
158、gital developments,despite the challenges that technologies such as cryptocurrency,NFTs and the metaverse present to a sec-tor particularly focused on preserving its heritage and protecting its image.In September 2021,for instance,Philipp Plein became the first global high-end fashion brand to accep
159、t crypto as payment both online and in its stores.It has part-nered with Coinify,a payments platform owned by Voyager Digital,enabling it to handle 24 cryptocurrencies,including bitcoin and ether.In the same year,crypto payment pro-cessor BitPay saw a 31%annual growth in the volume of transactions i
160、nvolving luxury goods such as yachts,cars and jewellery.More recently,crypto exchange FTX announced that it would be targeting luxury brands to help them to benefit from this fast-moving trend.For many high-end names,crypto is in essence a way to enter the metaverse and reap the benefits offered by
161、the growing interest in assets such as non-fungible to-kens(NFTs).Rosh Singh,MD at Unit9,a multidis-ciplinary production company that works on films and games,notes that luxury Not so long ago,high-end brands were wary of the internet,believing that it would cheapen the customer experience.Today,the
162、yre enthusiastic adopters of Web3 tech.What has changed?Luxury brands are benefit-ing from blockchain tech in ways that are less glamorous but every bit as important.LVMH,for in-stance,has joined forces with Prada Group and Cartier a subsidiary of its arch-rival,Richemont to develop the Aura Blockch
163、ain Consortium.The worlds first global luxury blockchain,this un-precedented collaboration of competitors represents what its creators call“a single,innovative solution to shared challenges of communicating information on auth-enticity,responsible sourcing and sus-tainability in a secure digital for
164、mat”.A challenge for luxury labels is to recre-ate the same thrill in the virtual world as customers would have when they walk into a store in Mayfair or Knightsbridge.“Owning a virtual fashion NFT brings with it the same feeling as owning an exclusive,one-off piece of designer cloth-ing,”Gaubert sa
165、ys.“The NFT is simply the digital equivalent.The perceived value associated with fashion NFTs is also another opportunity for these big fashion houses.Some collectors are treating their NFT purchases as investments.”But the metaverse poses threats as well as opportunities to lux ury brands.The young
166、er customers they are targeting tend to be more concerned about sustainability issues,for instance.A series of transac-tions emanating from a single NFT,such as bidding,selling and transferring own-ership can consume 340kWh of energy more than is needed to power the average fridge for two months.And
167、 luxury houses are waging a con-stant battle against fakes,as Abigail Dews,trademark attorney at intellectual proper-ty specialist Marks&Clerk,notes.“Just like physical counterfeit goods,virtual copies being sold for thousands of dollars on various NFT markets have the potential to dilute or tarnish
168、 a brand in the physical world.This is a particular issue for luxury fashion brands,where un-authorised NFTs are significantly cheaper than their real-world counterparts,”she says,adding that the problem has yet to be addressed in the UK courts.“Luxury brands will want to ensure that the legal prote
169、ction they have in the physical world is also enjoyed within the metaverse.”The metaverse certainly offers luxury brands a chance to reach new market seg-ments and showcase their craftsmanship in different ways.The challenge for them will be to do this while retaining their core values of quality,ex
170、clusivity and the high-est standards of customer service.Simon BrookeT E C H N O L O GYTOfflineOnline202520020202240Helen Dickinson,CEO of the British Retail Consortium,explores some of the toughest challenges facing the sectorBeyond recycling schemes,what should the
171、 fashion and retail industries be doing to achieve their net-zero aims?Supply chains play a pivotal role in retails journey to net zero,but it all starts with improved transparency and traceability.In fashion retail specifically,the main impact of carbon emissions occurs at the fabric creation stage
172、,from spinning to weaving to dyeing.This is why a clear sourcing strategy is essential when working with supply chain actors that are trying to shrink their own carbon footprints.The British Retail Consortium is helping retailers to reduce their car-bon emissions as part of our climate action roadma
173、p,which charts re-tails journey to net zero by 2040.More than 80 leading UK retailers have already signed up,including many big fashion companies.Part of the roadmap focuses spe-cifically on sourcing sustainably and aims to help retailers reduce their supply chain emissions.Our most recent guide wit
174、h IBM sets out the frameworks and strategies for how retailers can gain better visibil-ity and improve reporting of their emissions to achieve the greatest possible reductions.The UK is experiencing a cost-of-living crisis,with prices rising and household budgets shrinking.How easy is it to pursue a
175、 sustainable agenda at such a time?The rising cost of living is oneof the biggest concerns for retailers right now.The whole indus-try is trying to keep up with fluctua-tions in the market,while keeping costs down for consumers as they feel the squeeze.Nonetheless,most consumers are still looking fo
176、r good-quality prod-ucts that have been sourced respon-sibly although these must still be at a reasonable price.Even though it may seem so,this is not an impossible task.Retailers are looking at different initiatives to de-liver the best quality at a low cost.Such actions for fashion retailers in-cl
177、ude limiting the clothing ranges or fabric consolidation to allow retail-ers to negotiate better prices from suppliers without passing the costs back down to consumers.AAQQAQF U T U R E O F R E TA I L06points out that Amazon launched its first Kindle e-readers just as the global financial crisis was
178、 unfolding in late 2007 “and people bought them then because they were perceived to be of value”.No strategy will be worth its salt unless its driven by high-quality data.More efficient data-led planning and targeting will become crucial as consumers habits evolve during the downturn.Brands will nee
179、d to dig deep into first-party data to really understand why consumers are behaving in certain ways.The aim will be to target and reward customers with timely,tailored promotions and boost that value offering.“A focus on data-driven tactics that are fully trackable,highly targeted and more able to d
180、eliver fast results will be under-standably attractive,”says Siobhan Simpson,strategy director at ad agency The Brooklyn Brothers.“It will be interesting to see what consumers will cut back on.Over the past few years weve been reassessing our per-ceptions of whats essential and non-essen-tial.The th
181、ings we think we simply cannot live without have changed as weve recon-sidered whats truly important to us.”Downturn upsides strategies for success during a slowdown he R word is not something that any company likes to talk up,but the portents dont look good.The UKs GDP growth figures continue to lo
182、ok underwhelming.And,as persistently high inflation squeezes incomes and makes it increasingly hard for millions of Britons to make ends meet,the nation is in a grimmer mood than it was during the 2007-08 finan-cial crash,after the Brexit referendum and in the depths of the Covid crisis.According to
183、 market research giant GfK,consumer confidence has fallen to its lowest level since the firm started tracking it in 1974.Shoppers are already limiting their expen-diture and trading down.Retailers will need to show that theyre in the trenches with their customers,sharing the pain and work-ing hard t
184、o retain their loyalty.“If you dont flex with the prevailing winds as a retailer,youll get blown over,”warns Nick Cooper,global executive director for insights and analytics at the Landor&Fitch consultancy.“Brands have to remain price competitive.If they dont offer value,con-sumers will be forced to
185、 switch.The trick is to retain the loyalty of customers when Several indicators are pointing towards a recession in the UK.A lengthy slump could hit retail hard,but the industry has learnt a great deal in recent years about overcoming adversity times are bad and pull them back up when times are good
186、.”As their budgets tighten,shoppers prefer-ences are likely to become more extreme,more diverse and,hence,more difficult to predict.They will also seek greater control as the economy becomes less stable.While many firms will start discounting,“the smart retailers will keep trying to crack what custo
187、mers are really looking for in their lives.As everyone else is cutting prices,theyll be focusing on creating value,”says Martin Bui,experience design director at marketing agency Tribal Worldwide.He Nick Easen The smart retailers will keep trying to crack what customers are really looking for in the
188、ir livesS T R AT E GYTCONSUMER CONFIDENCE FALLS TO A RECORD LOWGfKs Consumer Confidence Index measures in recent months The industrys preoccupation with customer-centricity could change in adownturn.The focus instead will be on values not on the value a given brand offers to consumers,but on thevalu
189、es that matter to consumers the most.A key task for retailers will be to build a deeper relationship withcustomers based on these.Thats the view of Richard Robinson,managing director of marketing consultancy Xeim Engage.A brands values will need to embrace,support and raise up the customer,”he argue
190、s.“To quote RayKroc,the founding father of McDonalds:Look after the customers and the business will take care of itself.”In times of uncertainty,consumers crave familiarity and reassurance.Those companies that meet these emotional needs could have an advantage over those that focus solely on the rat
191、ional aspects of shopping.Expect companies to adopt sophisticated AI tech such as machine learning to work hard on cracking consumers values.This will help them to identify shopping trends and buying behaviour with increasing accurately,enabling them to focus on what truly matters to their customers
192、.Understanding which categories are more sensitive to shopper discretion will be vital.Companies that are working on recessionary business strategies centred on values will be better placed to respond when markets evolve at pace and it wont just be about consciously trading down,therise of own-label
193、 brands or personalised promotions,according to Luke Weston.“Successful brands will try to reframe the conversation so that itsfocused on value for living,”hepredicts.“This is about maintaining a positive,inspirational narrative in a world of price pressures.Its key to keeping customers engaged and
194、delivering relatable brand experiences that are in tune with theirevolving lifestyles shifting from bulk-buy to lifestyle value-add,say.This is a subtle,yet powerful,shift in defining a recession-proof strategy.”But the conversation about values wont add up to anything unless companies are getting t
195、heir messages across.In this digital-led era of entertainment,expect retailers to experiment with new channels and formats to engage with customers where they spend most of their time,whether thats watching TikTok videos or listening to podcasts.It could even be in a store.Nike Japan launched Nikela
196、b Radio last year,featuring a collection of music playlists,podcasts and video content from local celebrities and social media influencers.And eBay recently opened a platform enabling users to interact with vendors and purchase goods directly via its live-streamed video sessions.“The aim of these ne
197、w channels is to keep conversations with consumers alive during a recession,”Weston says.“In the process,these brands will reap the rewards with future sales and,hopefully,lifelong customer loyalty.”Andy Humphreys agrees:“The more a retailer builds a relationship,the more chance it has of weathering
198、 a storm.Even if Wayfair,M or B&Q were to reduce their prices in arecession,Ikea will still be Ikea others cant copy that brands deeper role in peoples lives.For example,it has expanded its business during the pandemic,opening new stores around the world.It can do this because it has democratised de
199、sign.”Loyalty schemes are likely to play anincreasingly important role if thedownturn does turn into a lengthyrecession.Data from these programmes provides rich insights into how customers are likely to adapt to deteriorating economic conditions.We could also see a shift from retailers towards provi
200、ding more digital goods and services,from virtual clothing and art to metaverse wares,as physical retailing feels the strain and labour shortages deepen.Fletcher points out that“38%of everything bought online is now a digital product or service.Moving away from physical to digital will savecosts in
201、production,duplication and delivery.”Halfpoint Images via GettyImagesV for victory based on customers valuesPhysical retailing could also be hit hard again,just as it was during the darkest days of the pandemic.Fuel and energy cost infla-tion,staff shortages and supply chain dis-ruptions are all hur
202、ting high-street retail-ers,which are also desperate to pass on highbusiness rates to consumers.Having a multi channel contingency plan that can be adjusted quickly will therefore be crucial.“Its hard to enact a business-changing strategy to cope with recession a few short months before it hits,”say
203、s Hugh Fletcher,global head of consultancy and innovation at Wunderman Thompson Commerce.“Retailers that ride out the storm tend to have large cash reserves,enabling them to thrive while others struggle.They also tend to have omnichannel strategies,enabling them to dial up or down the channels most
204、affected.Theyve also built technology solu-tions that can scale up and down with ease.”The past two years of upheaval have shown that brands could do more today to prepare for economic shocks tomorrow.We all crave reassurance and familiarity in uncertain times,so expect retailers to focus on show-in
205、g such qualities.But a recession will ulti-mately mean some form of compromise.They will need to work out what consumers are willing to concede and what they arent.“If not price,what are customers willing to compromise on?In the case of Netflixs new subscription tier,its the inconvenience of watchin
206、g ads,”notes Andy Humphreys,sen-ior strategist at branding agency Coley Porter Bell.“Cosmetics retailer Beauty Pie has seen huge success after compromising a luxury brand for products less than half the retail price.Spotting what the negotiables and non-negotiables are for customers could unlock int
207、eresting recession strategies.”Expect retailers to continue automating processes all along the customer journey to improve convenience and cut labour costs.Automation is an important long-term investment.Companies that do so now will give themselves a better chance of weather-ing future downturns.Bu
208、t theres a fine bal-ance between creating efficiencies and emp-tying stores of staff.Retailers experiences during the pandemic have shown that shop-pers are becoming ever more likely to change long-held habits,Fletcher warns.“The lack of availability of products dur-ing the first Covid lockdown forc
209、ed many consumers to expand their horizons and move away from brands that theyd been used to shopping with,”he says.“Cutbacks in personnel often follow recessions,but retailers must beware:43%of the physical shoppers we have polled say that there already arent enough sales advisers in stores to help
210、 them.Any further cuts in staffing could give them another reason to transition all their spending online.”Above all else,expect companies to build resilience.There are some new tech tools in the retail armoury,including AI systems that can identify new consumer trends as they emerge.A downturn cert
211、ainly drives changes in buyer behaviour,which in turn create new commercial opportunities.Bui cites Lego as a case in point,noting that the companys profits increased during the previous recession when those of its rivals didnt,“because it recognised that customers wanted toys with longevity.So itad
212、apted its message to promote the dura-bility of its products,”he says.“There is still a lot to play for.”Gobbling up distressed and/or strategic brands is the name of the game for a bold retailer seeing opportunity in a recession.Such movesalso enable the acquirer to consolidate its position in a st
213、agnating market.Identifying customer preferences is crucial to thesuccess ofthis process.“Were tracking a trend for high-street names to amass portfolios of well-known brands as they pursue fulfilment-model business strategies,”reports Luke Weston,brand experience strategy director at the Household
214、agency.“Thisway,they can extend their reach but benefit from lower fixed overheads.”It helps that retailers hold far more data about their customers than they ever have done.This enables them to identify the most useful products and services,and where an acquisition or new partner might be a good fi
215、t and not cannibalise their core brand offering.Partnerships are also a way to project retail brands with less risk think M&S and Ocado or Next and Homebase.Store-within-a-store retail concepts have become popular here,whether its Missguided teaming up with Asda orPret A Manger with Tesco.“Tie-ups m
216、ake sense,especially in arecession,”says Andy Humphreys.“Its far easier than building out your own offering.For instance,Next had nocredentials in garden products,butHomebase does.So,rather than spending the next three years trying to build out that area,Next brought in a partner to do it.This is a
217、quick way to expand and improve the customer experience you offer in a downturn.”Consolidate to accumulate010-10-20-30-40-50-60-70-802030GfK,2022Overall index scorePersonal financial situation over the preceding 12 monthsPersonal financial situation over the coming 12 monthsGeneral economic situatio
218、n over the preceding 12 monthsGeneral economic situation over the coming 12 monthsMajor purchase indexJune 2022May 2022April 2022June 2021R A C O N T E U R.N E T07The enactment of more stringent legisla-tion to protect public service workers including retail staff from abuse in their jobs has come n
219、ot a moment too soon,then.Under the amended Police,Crime,Sentencing and Courts Act 2022,which has been in effect since 28 June,a common assault on anyone working in a retail store will be classed as an aggravated offence and therefore attract tougher penalties.While experts in the field agree that t
220、his is a welcome development,many believe that more can and should be done to protect retail workers,as the cost-of-living crisis causes further tension for millions of cash-strapped shoppers.An enquiry by the Commons home affairs select committee last year uncovered just how dire the situation had
221、become.Its report concluded:“It is completely unac-ceptable that violence and abuse towards retail workers is becoming endemic in British society,”adding that there was“over-whelming evidence that the police response is simply failing to match”the escalation inhostilities.Tougher sentencing was one
222、of the com-mittees many recommendations.These ranged from ensuring that police and crime commissioners(PCCs)prioritise tackling such crimes to establishing more effective reporting systems.Chris Brook-Carter is CEO of the Retail Trust,a charity promoting the welfare of all those who work in the indu
223、stry.He says:“The problem with this aggression is that itsbecome a social norm.Abuse is one of the top issues affecting staff wellbeing.Combined with deteriorating mental health from the pandemic and concerns about the cost of living,its prompting many people to consider leaving their jobs in retail
224、 for good.”Ruck and mall:retailers start the fightbackShop workers have suffered an epidemic of abuse from customers over the past two years.But the industry,with the help of the justice system,is taking concerted countermeasuresor a brief period,when the initial wave of Covid struck the UK,the nati
225、on held retail workers in almost the same high esteem as it did NHS staff.After the first lockdown was imposed in March 2020,these previously unsung key workers many of whom werent equipped with adequate personal protective equip-ment were lauded for keeping everyone fed,watered and stocked up with
226、loo roll.But the goodwill didnt last.The publics initial gratitude turned into frustration as the governments social distancing regime forced shoppers to queue up outside stores and wear masks inside them.In too many cases,frustration turned into aggression.The British Retail Consortium(BRC)Crime Su
227、rvey 2022 Report reveals that inci-dents of verbal and physical abuse targeting retail workers nearly tripled in number year on year during the 12 months ended 31 March 2021 to 1,301 every day on average.Dealing with violence became the top concern for retailers in the depths of the Covid crisis,acc
228、ording to the BRCs research.Its report concludes that the“response from the police has failed to meet the challenge”,given that 60%of the survey respondents described this as either poor or very poor.Only 4%of cases resulted in prosecutions,compared with 6%the previous year.He continues:“The new leg
229、islation sends out a much clearer message that this kind ofbehaviour will not be tolerated.Its also important that retail employers unite to provide the right protection for colleagues facing unacceptable threats.”Jason Birks,national president of the Federation of Independent Retailers,agrees that
230、stronger legal protection should be just the start.“The important thing is that the police and the Crown Prosecution Service cooper-ate to ensure that this new law is an effective deterrent,not just a piece of paper,”he says.“Its essential that retailers report all inci-dents to highlight the scale
231、of the problem.And,if retail crime is to be tackled head on,the police response must improve.”One constabulary thats leading the way in this respect is Sussex Police.Katy Bourne has been elected three times as the forces PCC since commissioners replaced police authorities in 2012.“When I was first e
232、lected,I was the only commissioner in the country to include business crime in their police and crime plan,”claims the Conservative politician and former business owner.“I do under-stand there are huge demands on police time,but we know that 20%of offenders create 80%of crimes.They cause so much mis
233、ery,yet they werent being targeted.”When Bourne set up the Safer Sussex Business Partnership involving retailers,crime experts and police in early 2020,a fundamental issue soon came to light.“While the police,who are driven by evi-dence,were telling me that everything was fine,businesses were saying
234、 that it was ter-rible,”she says.“We found that retailers were reporting about 8%of incidents and saying:The police dont show up.They dont do anything,so whats the point?But,if 92%of crimes in stores werent being reported,how could the police ever respond to them?It just needed someone to bring the
235、two sides together.We all recognised that the situation couldnt continue.”The introduction of an innovative one touch system slashed the time it took to report crimes from half an hour to two minutes.Meanwhile,Sussex Police set up a dedicated business crime unit to respond to such reports.“Focusing
236、on business crime means that were getting a higher solved rate.This has taken a while,but we have built up the confi-dence with our business community and it is already making a difference,”Bourne says.“My colleagues around the country have since started setting up their own busi-ness partnerships.”
237、And,with specialist organisations such as the National Business Crime Centre and the National Retail Crime Steering Group growing in influence,further initiatives are coming thick and fast.They include the provision of body-worn cameras for workers and the production of videos offering guid-ance on
238、how to stay safe while managing risky situations for instance,when asking customers to provide proof of age.Naz Dossa is CEO of Peoplesafe,a pro-vider of personal security devices used by enterprises such as the Co-op.He says that a feature of its cameras is that“they have front-facing screens,so th
239、at members of the public can see that their actions are being recorded.This serves as a deterrent to potential offenders,as anyone can clearly see that,if they were to commit verbal and/or physical abuse,a camera would collect evidence of that.”The Association of Convenience Stores is asking PCCs to
240、 sign a pledge to make tack-ling retail crime a priority.And the Retail Trust has joined forces with law firm Foot Anstey to set up a certification programme designed to“showcase the retail businesses that are taking the appropriate steps to pro-tect their staff while giving retail workers the clari
241、ty they deserve”.Perhaps the simplest initiative of all is a movement urging customers to be nicer to retail workers.The national#ShopKind campaign aims to encourage courteous behaviour in shops,highlight the vital role of retail workers in the community and raise awareness of the scale and impact o
242、f abuse against them.“Just those two words shop and kind say everything,dont they?”says Bourne,who launched the first Keeping Christmas Kind campaign in Sussex in 2020.Brook-Carter agrees:“We have so much to thank retail workers for.The very least they deserve is the ability to do their jobs without
243、 fear of being abused or assaulted.”Fiona Duffy The problem with this aggression is that its become a social normSome of the advertisers in this report will generate over 200 leads thanks to Raconteurs integrated print and digital campaigns.Email to find out more.If youre looking at this advert,then
244、 your prospects are too.Commercial featureThe future of sportswear blends clothing and intelligenceTo fully realise the value of smart sportswear,the power to transform fi tness needs to be put into the hands of consumers,says Adam Crofts,founder and CEO of PrevaylHow has the sportswear industrys re
245、lationship with technology evolved?Weve known for some time that there is a big opportunity to take modern sportswear to the next level,but the pro-gress weve seen when it comes to smart technology in clothing has thus far been underwhelming,to say the least.Weve seen efforts from both tech and athl
246、ei-sure brands across design,fabrics,utility approaches,manufacturing and materials,ecommerce and consumer knowledge.But generally the efforts to embed technology into fi tness routines through sports cloth-ing have been pretty cumbersome.What ultimately are the benefi ts of smart sportswear?Clothin
247、g can be a powerful source of data for sports and fi tness enthusiasts as well as anybody interested in a healthier lifestyle.Smart sensors are able to moni-tor your physical condition,from heart and breathing rates to body temperature and movement,enabling you to make smarter fi tness decisions.Clo
248、thing feeds into every occasion in everyday life,meaning consumers can easily learn,own and take control of their health and fi tness goals.Biometrics data translates into actionable insights to optimise how you play,perform and workout.Beyond the consumer,smart sportswear can give a brand a greater
249、 pur-pose while negating the need for multiple devices,apps and subscriptions.Why have the big sportswear brands struggled to make a real mark in this area?Its not through a lack of trying but their core product is apparel,and thats all they focus on.Simply playing with technology never works,and ne
250、ither does outsourcing it.Tech teams havent cracked it as they dont know clothing,just as much as the clothing industry doesnt know technology.There is also a lack of emphasis on innovation and IP generation.Data is central to smart sports-wear,but in wearable devices it is typically either inaccura
251、te or incomplete,or both.Data with no context behind it is unusable or incomprehensible to the mass consumer market.There are also limited occasions in which the technology can actually be worn,such as bands and straps.The devices lack good battery life and tend to be made from clunky,bulky plastic.
252、The solution must be built with multiple teams across tech and clothing disciplines who focus on the same outcome from the ground up,owning all areas of development and moving in tandem.How is Prevayl disrupting the sportswear industry?We are creating the next generation of sportswear,fusing clothin
253、g with intel-ligence to help level up your workout with real-time fi tness insights.Prevayl puts equal emphasis on technology and accuracy of data,and style and the design of our clothing.We have created a simple interface that allows fabrics and technology to act together as one,and we have the fou
254、ndations and in-house teams to continue with rapid IP generation and product development.We also believe clothing should provide you with everything you need without any extra cost.We should all now have access to whats happening in our bodies,and the ability to understand it and be educated without
255、 paying a monthly fee.Therefore,with Prevayl,there are no subscrip-tions required to access your fi tness data.What is the future of clothing?Partnerships and collaborations between brands will build an amaz-ing future.In ten years,devices will be a thing of the past.Theyll be laughed at.Clothing wi
256、ll be the interface from which we gather everything we need to know from our bodies.It already allows people to express their personalities and styles but when people wear Prevayl they will be showing the world what they stand for that they care about their health and take progression seriously.The
257、journey will make the expe-rience simpler.Data will soon be informing and enhancing everything from our home,work set-up and productivity to our enter-tainment,personal relationships and,of course,health and fi tness.Eventually,cloth-ing will evolve into technology in its own right,empowering us to
258、live our lives better.For more information,visit Q&AThe future of sportswear C R I M EFBritish Retail Consortium,20221,301incidents of abuse targeting retail workers occurred daily on average over the period4%of cases of verbal or physical abuse targeting retail workers resulted in prosecutions over
259、 the 12 months from April 2020 to March 202160%of retailers described the police response as either poor”or very poorfizkes via GettyImagesF U T U R E O F R E TA I L08she says,adding that disclosing data such as how much garment workers are paid is crucial to a transparent supply chain.There is legi
260、slative hope on the horizon.Last month,the government indicated its intention to give the CMA the power to enforce legislation directly.Under the proposals,the watchdog would be able to impose a penalty of up to 10%of global Is this the beginning of the end for greenwash?an a fashion collection be m
261、ar-keted as“cherishing waste”yet contain only a small proportion of recycled materials?Yes,it can.Is it greenwashing?The jury is out.But the UK Competition and Markets Authority(CMA)wants to abolish grey areas,pledg-ing to name and shame fashion retailers that make false or misleading claims about t
262、heir environmental credentials.In March,the CMA said that it would publicly list fashions worst greenwashing offenders,having already published a report revealing that 40%of green claims online could be misleading and released a Green Claims Code in 2021.The code is a checklist of 13 requirements th
263、at brands must meet when making a green claim to comply with consumer protection law.The Cherish Waste collection in ques-tion was launched by H&M in April.It was criticised for greenwashing by anti-fast-fashion campaigners including Venetia La Manna,who cited a pair of denim-print jogging pants mad
264、e from 100%cotton(the garments shell is made from 50%recy-cled cotton).“This is worthy of naming and sham-ing,”agrees Orsola de Castro,co-founder of Fashion Revolution.“I welcome the CMAs review but I dont welcome steps that take years to turn into action.And simply stop-ping a brand from saying som
265、ething isnt the same as being granular and accurate about their supply chain.”Capsule collections such as Cherish Waste often come under fire for represent-ing a small proportion of an otherwise large offering H&M produces 3 billion garments each year.Globally,the equiva-lent of a rubbish truck full
266、 of clothes ends up in a landfill every second.Some experts believe that smaller ranges could lead to systemic change if the right parameters are applied.Amy Powney,creative director of Mother of Pearl,points to her recent clothing and homeware collections with John Lewis.“The team wanted to tap int
267、o the sus-tainable knowledge I had,”she explains.“But it is vital that these collections lead to evolutionary change in the company as a whole,not just as a marketing one-off.”Fabrics are one of the most common entry points for retailers seeking to change their business models.Powney highlights Tenc
268、el as a fabric that brands should explore for its cellulose fibre of botanic origin,which comes from sustain-able forestry.“For us,our most commonly used mate-rial is cotton used in 60%of our product ranges so we started there,”says Nick Stevenson,trading director at Fat Face.“We used three certific
269、ation bodies to help us the Better Cotton Initiative,the Organic Content Standard and the Global Organic Textile Standard and were now moving on to our other materials.”But fabrics represent only one part of fashions notoriously complex supply chains,sections of which are often untraceable by the br
270、ands themselves.“Id like to see transparency become part of the main vocabulary in an indus-try where brands are open and honest,where they give real insights into the pro-gress that they have made and where they want to improve,”Powney says.“Our website is set up so that you can see the sustainable
271、 attributes of each piece.We are transparent.”If sustainable was the original buzz-word and one coming under scrutiny by the CMA transparency is already vying to replace it.When approached for com-ment,H&M issued the following state-ment:“We strive to act in accordance with local regulation and in c
272、ooperation with the relevant bodies.We welcome initia-tives that contribute to an open discus-sion regarding the importance of trans-parency in the fashion industry.”The CMA will have its work cut out to ensure that transparency alongside emerging terms such as purposeful,responsible and regenerativ
273、e is not co-opted for greenwashing purposes.As Stella McCartney said:“I barely even With the Competition and Markets Authority set to name and shame fashions greenwashing offenders and the intention to legislate on the horizon is much-needed systemic change afoot in the sector?know what the word sus
274、tainable means any more.”But can the Green Claim Code hold any business to account without legislation to support it?De Castro isnt convinced.“Brands like H&M are used to being named and shamed,so nothing will be effective unless it comes with industry regulation to ensure brands tell the truth,”Ana
275、 Santi Businesses must be accountable for their actions.They have a responsibility to know and show the people and resources behind their collections without sugar-coating anything M A R K E T I N GCas Tylenol,diapers and hotdog buns,for delivery by air in as little as 30 minutes”.Beyond food,UAVs c
276、ould also help to shift shiny gadgets.In March,Samsung announced a partnership with Irish firm Manna Drone Delivery to give customers in Oranmore,Galway,an option to receive their latest devices via an air drop.In the UK,the Department for Trans-ports newly published Flightpath to the Future strateg
277、y sets out a plan for inte-grating delivery drones into shared air-space with other UAVs(for delivering medicines or helping the emergency ser-vices)as well as with the wider commer-cial air traffic infrastructure.“This is an exciting time for the UKs drone sector,as new technologies are solving rea
278、l commercial problems and helping to save lives,”says Professor Iain Gray,director of aerospace at Cranfield University and chair of the Drone Indus-try Action Group.The government is making“game-changing investments”with the Future Flight Challenge a 300m R&D scheme for the UK aviation industry,acc
279、ording to Gray.But he adds that“innovators need clear,forward-thinking and responsive regulatory regimes to operate within if they are to reap the full benefits”.While the regulators and other stake-holders work to integrate drones with the nations broader aviation networks,Royal Mail has been trial
280、ling UAVs to assess their capacity to serve remote communi-ties.In May 2021,it used a drone to deliver Covid testing kits and personal protective equipment from Cornwall to the Isles of Scilly.In April this year,it conducted tri-als on the Shetland Islands in partnership with Windracers,putting on f
281、lights be-tween Tingwall Airport near the capital,Lerwick,and the northernmost inhabited island,Unst,50 miles away.Royal Mail is planning to establish more than 50 drone postal routes over the next three years,subject to approval from the Civil Aviation Authority.Its longer-term aim is to operate a
282、fleet of 500 UAVs nationwide.Its just the type of fulfilment capability that retailers will have on their radars as the commercial potential of drone delivery really takes off.Drone delivery more than just pie in the skyhanks to advances in technologies such as machine learning,cloud computing,GPS a
283、nd Lidar,the use of unmanned aerial vehicles(UAVs)in retail fulfilment is becoming a reality.There have been more than 660,000 commercial deliveries by parcel drone (excluding trial flights)worldwide over the past three years,according to esti-mates by McKinsey&Co.A forecast last year by Meticulous
284、Research projected that this market would grow by an average of 40%a year to 2028,by which time it could be valued at$1.29bn(1.07bn).Parcel drones offer more than a way to leapfrog gridlocked streets.Their carbon footprint can be significantly smaller than that of their earthbound counter-parts,acco
285、rding to a study published last October by satellite telco Inmarsat and Cranfield University.The research indi-cates that a UAV delivering 10 packages within a 5km radius would emit 47%less CO2 on average than a small van with the same workload.Unsurprisingly,some of the giants of retail are becomin
286、g increasingly interest-ed in aerial fulfilment.Last month,for instance,Amazon revealed plans to start deliveries in Lockeford,a town in Californias San Joaquin County,using Prime Air drones.Its already liaising with local officials and the US Federal Aviation Administration to obtain authorisation.
287、Heath Flora,the state assemblyman whose district includes Lockeford,res-ponded positively when the news broke.“Residents will soon have access to one of the worlds leading delivery innovations,”he said.“Its exciting that Amazon will be listening to the feedback of the San Joaquin County community to
288、 inform the future development of this technology.”The Lockeford scheme is the culmina-tion of an extensive R&D programme in which Prime Air has developed a sophisti-cated sense-and-avoid system that ena-bles drones to autonomously detect and dodge hazards such as power lines and birds in flight.Thi
289、s project could shape the extent of Amazons drone ambitions,which will be influenced by the aviation rules of different jurisdictions,the level of public acceptance and the ever-important con-sumer demand for rapid fulfilment.But how quickly do customers really need their stuff?Smarty,an e-shopping
290、portal that applies coupons on purchases from US retailers including Best Buy,Target and Walmart,recently asked its customers to identify which goods they would pay more for if these could be delivered to them by drone within an hour.Their top choice for a rapid UAV drop was food(cited by 40%of resp
291、ond-ents),followed by medicines(38%),bat-teries(30%),an emergency replacement smartphone(30%)and clothing(28%).One of the main companies jostling for a slice of the aerial fulfilment economy,When Amazon and Walmart invest heavily in aerial fulfilment trials,everyone takes note.Isit just a matter of
292、time before parcel drones become as common asdelivery vans?Wing,has pioneered a mall-based store-to-door service.Deliveries are dispatched from the roof of the Columbus Shopping Centre in eastern Helsinki.With just a few taps on Wings mobile app,customers can have food drone-delivered to homes in th
293、e citys Vuosaari,Marjaniemi and Puotila neighbourhoods,as well as to designated picnic spots.The Helsinki deployment follows a pilot in Australia where,in col-laboration with Kentucky Fried Chicken,Wings drones distributed hot KFC fare in the suburbs of Logan City,Queensland.Another key player in th
294、is market is SkyDrop(formerly known as Flirtey).It inked a deal in January with Dominos Pizza to fulfil UAV deliveries in New Zealand the next step from the 2016 col-laboration that pioneered drone food drops from a Dominos franchise in the North Island town of Whangaparaoa.Since then,SkyDrop has in
295、creased its drones payload to 3.5kg and secured an unmanned aircraft operator certificate.In May,Walmart announced plans to expand its DroneUp delivery network to 34 sites,with a potential coverage of 4 million households in Arizona,Arkansas,Florida,Texas,Utah and Virginia.This will enable the super
296、market giant to dis-tribute more than 1 million packages by drone annually.It plans to charge a deliv-ery fee of$3.99 for a 4.5kg payload.The company says“customers will be able to order from thousands of items,such Paul Sillers Customers will be able to order from thousands of items,such as Tylenol
297、,diapers and hotdog buns,for delivery by air in as little as 30 minutesL O G I S T I C STannual turnover on companies that break such laws.“It would be a game-changer because it would allow the CMA to act fairly quickly,”says Duncan Reed,partner at law firm TLT.“The current regime for punishing orga
298、nisations that mislead consumers is clunky and involves proceedings through the criminal courts.This is different.”He believes that there could be some prominent casualties of such a move,not least because the CMA wants to be seen as a“world-leading regulator”after Brexit.“The CMA will seek to exerc
299、ise its pow-ers,”Reed predicts,cautioning retailers that cannot trace every supplier.“Theyll need to tighten up the indemnities and warranties within their supply chains.”The European Securities and Markets Authority has also published a plan in which it identified tackling greenwashing as a priorit
300、y.Firms can and many will wait for legislation,which is clearly necessary.But time isnt on our side when it comes to the climate emergency.Revolutionary brands have shown what is possible without regulatory obligation.Businesses must be accountable for their actions.They have a responsibility to kno
301、w and show the peo-ple and resources behind their collections without sugar-coating anything.“Ive journeyed,and continue to journey,to seek out the best suppliers,which care about the planet,”Powney says.“We are a small brand with limited means.If we can do it,anyone can.”WHAT CONSUMERS UNDERSTAND W
302、HEN BRANDS SAY THEYRE SUSTAINABLEPercentage of US and UK consumers who said the following when asked for their views on what sustainable means when applied to productsUK customersUS customers0%10%20%30%40%50%Products made from recycled,sustainable and natural materials Sustainable manufacturing practicesEnvironmental responsibilitySustainable and efficient shipping practicesSustainable and minimal packagingFirst Insight,2022STORYPLUS via GettyImages