德勤咨詢：保護利潤的同時推動零售業(yè)可持續(xù)發(fā)展 How to help drive sustainability in retail-while protecting margin

Deloitte。

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Howtohelpdrive

sustainability

inretail—while

protectingmargin

MAKINGAN

IMPACTTHAT

MATTERS/

Contents

Drivingsustainabilitythroughtechnology

04

Currentandfuturecustomers

05

Doingwhat’srequired

06

Doingwhat’sright

07

Startanywhere,goanywhere

08

Sourcing

08

Designplanningandproduction

09

Logistic

09

Newbusinessmodels

10

Bolsteringthebottomline

11

Connectwithus

1

2

Howtohelpdrivesustainabilityinretail—whileprotectingmargin

03

Fortwoyears,theCOVID-19pandemicstoppedmuch

oftheworldinitstracks,andmanyofussuddenly

hadmoretimetoreconsiderourpriorities,howwe

consume,andtheimpactwearehavingonourplanet.

Whilemuchoftheworldwasonpause,wesawdramatic

improvementsinairandwaterquality,ecosystems

reemerge,andaglobaldecreaseincarbonemissions.

Didwelearnanylessonsfromthattimeonpause?The

retailindustrythinksso.Outofthatrenewedsense

ofappreciationforourtimeandnaturalresources,it

seemsmuchofsocietynowcollectivelyunderstands

theurgentchallengeahead:Howcanwehelprecreate

anenvironmentwherenaturethrivesandtheplanet

isprotected—withouthavingtocompletelycloseup

shop?Howcanwehelpprioritizesustainableoutcomes

thatarebothgoodfortheplanetand,inincreasingly

challengingeconomictimes,goodforbusiness,too?

Howtohelpdrivesustainabilityinretail—whileprotectingmargin

04

Drivingsustainability

throughtechnology

Emergingfromthepandemic,we’ve

witnessedthefast-trackeddevelopmentoftechnologythat’spushingtheenvelopeonsustainability.Today,thesetech-enabledtoolsarehelpingcompaniesbalance

theshort-termbenefitsofinvestinginsustainability,likegainingoperational

efficiencies,withlong-termbenefitslikedifferentiation,drivingconsumerchoice,andabolsteredbottomline.

Intheretailindustry,newtechnology

ishelpingenablefashionandtextile

companiestooptimizeacrosssourcing

andproduction,operations,supplychain,andlogistics/reverselogistics,aswellas

helpingaddresstheimperativefortrackingandtracing.Technologyhasevengone

sofarastohelppowercompletelynew

circularbusinessmodels,likerentaland

recommerce,andunitedisparatedataso

thatcompaniescanhavebettervisibility

oftheirenvironmentalfootprint,which

canhelpthemmakemoremeaningful

sustainabilitycommitments.Thesenew

waysofmeasuringprogresscanhelp

organizationsbecomemoretransparent

intheirsustainabilityefforts,because

bothcustomersandregulatorswill

likelycontinuetodemandactionand

accountability.

Investingintechnologytohelpdrive

sustainabilitycanbegoodforbusiness,

andforcompaniesthatarealreadyacting

today,sustainabilityisadifferentiator.But

tomorrow,itwilllikelybetablestakes.

Howtohelpdrivesustainabilityinretail—whileprotectingmargin

05

Currentandfuture

customers

AsmillennialsandGenerationZcontinue

towieldspendingpowerandinfluence

theconsumerlandscape,newlyavailable

dataindicatesthatsustainabilitymatters

tothesecustomers—alot.“Inthefaceof

thehighestinflationwe’veseenindecades,

47%ofconsumersarestillchoosingto

spendmoreforsustainablegoodsand

services,eventhoughtheytypically

associatesustainablealternativeswith

beingmoreexpensive,”saysStephen

Rogers,managingdirector,Consumer

IndustryCenter,DeloitteUS.Despite

aninflationaryeconomyinEurope,the

ongoingRussia-Ukraineconflict,China’s

pandemic-relatedclosures,andpolitical

andeconomicuncertaintyintheUS,

mountingconsumerpressurefrom

youngergenerationsisencouragingmany

brandstomovetowardmoresustainable

practices.

47%

ofconsumersarestill

choosingtospendmorefor

sustainablegoodsand

services,eventhoughthey

typicallyassociate

sustainablealternativeswith

beingmoreexpensive,

Howtohelpdrivesustainabilityinretail—whileprotectingmargin

06

Doingwhat’srequired

DeloitteUSresearchrevealsinactiononclimatechangecouldcosttheworld’s

economyUS$178trillionby2070,and

governmentsandregulatorybodiesarepassingsustainabilitylegislationaroundtheglobethatwilllikelysoonrequire

real,verifiablemetricsreporting.The

EuropeanGreenDeal,forinstance,aimstoreducenetgreenhousegasemissionsacrossthecontinentby55%by2030,andwhiletheUSistrailingbehind,regulatoryrequirementshavebeguntorolloutin

NewYorkandCalifornia,withmetricsalsoaimedtobemetby2030.65%ofCxOssaidthechangingregulatoryenvironmenthasledtheirorganizationstoincreaseclimateactionoverthelastyear.

Butdoingwhat’srequiredmaynotbe

thesameasdoingwhat’sright.Beyond

theforthcomingregulatoryreporting

requirements,somethingmuchbigger

couldbeatstake—brandreputation.

65%

ofCxOssaidthechanging

regulatoryenvironmenthas

ledtheirorganizationsto

increaseclimateactionover

thelastyear

Howtohelpdrivesustainabilityinretail—whileprotectingmargin

07

Doingwhat’sright

Whenitcomestosustainability,many

oftoday’sconsumerswanttoknowthat

acompanyhasprioritiesbeyondprofit,

andwithsustainabilityclaimsaround

eachcorner,itcanbeeasytosuspect

greenwashing.Now,consumersare

challengingbrandstobemoretransparentaroundtheirenvironmental,social,and

corporategovernance(ESG)footprint.

AccordingtoarecentThinkwithGooglereport,72%ofUKconsumerssaythat

havingabrand’svaluesreflecttheirownbeliefsisadecidingfactorinwhatthey

buy,somakingasalecancomedowntowhetherornotaconsumerfeelstheycantrustwhatacompanyclaimstobetrue.Notonlythat,sustainabilityhasbecomeadrivingconcernwithintheworkforce,

too,asmanycompaniesseektoattractandretainemployeesfromatalent

poolwhocareabouttheenvironmentalcommitmentsoftheiremployers.

72%

ofUKconsumerssaythat

havingabrand’svalues

re?ecttheirownbeliefsisa

decidingfactorinwhatthey

buy

Progressinsustainabilityperhapshasn’t

beenmadequicklyenough,dueinpart

toalackoftechnologythatmighthave

allowedorganizationstoadvancemore

rapidly.Untilnow.Thestoriesexploredinthispaperofferanoptimisticviewofwhat’spossiblenowthattheindustryhasbetteraccesstotech-enabledtools,solutions,andcapabilitiesthatcanhelpdrivemeaningfulchange.

Bystartingnow,companiescanbothgetaheadofrequirementsonthehorizon

andstartdoingwhat’srighttohelp

addressrealclimatechallengesanddrivesustainability—thebenefitsofwhichcanoutweighthecost,eveninanuncertaineconomicenvironment.

Howtohelpdrivesustainabilityinretail—whileprotectingmargin

08

Startanywhere,goanywhere

Tacklingsustainabilitymayseemdaunting,butinreality,itcanbeassimpleas

adoptinga“startanywhere,goanywhere”approach.AccordingtoarecentGoogleCloudsurvey,54%ofretailerssay

theydon’tknowhowtobecomemore

sustainable,butmanycompaniesneednotreimaginetheentirevaluechainfromend-to-endnoroverhaultheirwholebusinessmodel.Bysimplyselectingoneaspectoftheirprocessandconsideringthewaysinwhichitcouldbeapproachedfromamoresustainablelens,companiescanlikely

begintomakeapositiveimpactfasterthantheythink.Developingenvironmentally-

friendlymaterialsandfindingnewwaystobemoresustainableindesign,production,distribution,andcommunicationcan

helpcompaniescreateproductsthatareinherentlysustainable,andleadcustomerstointeractwiththoseproductsinnewanduniqueways.

54%

ofretailerssaytheydon’t

knowhowtobecomemore

sustainable,

“It’snotthatbrandshavenotwantedtomakemeaningfulchange,buttheyhavelackeddataandscalabletoolstohelpthemmakemoreinformed

choices.Technologyasanenabler,andcross-industrycollaboration,willcontinuetobecrucialinhelpingtheindustrymakeameaningfulstep

changeand?llinthesedatagaps.”

MariaMcClay

DirectorofFashion&BeautyatGoogleCloud

Sourcing

Muchofthenegativeenvironmental

impactintheapparelindustryoccursat

therawmaterialsstageoftheproductionprocesswheremanybrandshavelittle

tonovisibility.Thislackofeasy-to-digest,relevantdatacanbecomeabarrierto

takingactionMariaMcClay,Directorof

Fashion&BeautyatGoogleCloud,says.

“It’snotthatbrandshavenotwanted

tomakemeaningfulchange,butthey

havelackeddataandscalabletoolsto

helpthemmakemoreinformedchoices.Technologyasanenabler,andcross-

industrycollaboration,willcontinueto

becrucialinhelpingtheindustrymakea

meaningfulstepchangeandfillinthese

datagaps.”Tonamejustoneeffort,McClayrecentlyworkedincollaborationwith

theWorldWildlifeFund(WWF),Textile

Exchange,andleadingbrandsandindustryspecialiststopilottheGlobalFibreImpactExplorer,atoolthatprovidesbrandswiththeinformationneededtohelpmake

moreinformedsourcingdecisions.After

uploadingthebrand’sfiberportfolio,this

toolusesclosetoreal-timedatatoassessenvironmental,reputational,andregulatoryrisksandprovidestailoredriskreduction

recommendationsincludingopportunitiestoinvestinregenerativeagricultural

practices,certifications,andhowtoswitchtocertifiedfibers.

Howtohelpdrivesustainabilityinretail—whileprotectingmargin

09

“Traceabilitywillgiveusabsolute

visibilityfromthe?eldtothewardrobe.Thatmeansunderstandingthesupplychain,understandingriskandsourcinginthevariousregions.Wehavea

roadmaptosupportthat,withkeymilestones.Thishelpsusdeliverand

reportonourtargets,both

environmentallyandsocially,and,

aboveall,itiswhatconsumerswant.”

CarolineLaurie

VicePresidentofCorporateResponsibilityatBurberry

LuxurypowerhouseBurberryaims

for100%ofitskeyrawmaterialstobe

traceablebyFY2025/26,adeadline

that’saroundthecorner.InDeloitte

Global’s2023GlobalPowersofRetailingreport,CarolineLaurie,VicePresident

ofCorporateResponsibilityatBurberry,

saidsustainabilityambitionsareno

longerenough—it’stimeforoperationaldelivery:“Traceabilitywillgiveusabsolutevisibilityfromthefieldtothewardrobe.

Thatmeansunderstandingthesupply

chain,understandingriskandsourcinginthevariousregions.Wehavearoadmaptosupportthat,withkeymilestones.Thishelpsusdeliverandreportonourtargets,bothenvironmentallyandsocially,and,

aboveall,itiswhatconsumerswant.”

Inadditiontothesenewtrackingand

tracingtools,companiescannowuse

toolsthatcreatedigitalsupplychain

twinsofgarmentsandfabricstohelp

reducelogistics,supplychainwaste,andinefficienciesthatareoftenaffectedby

unpredictablevariableslikeweather

events,aglobalpandemic,orgeopoliticalfactors.Thesharingofinformation

betweenbrandsandsupplierscanhelpstrengthentheintegrityofdigitalsupplychaintwinssupplementedbythird-partydata,includingnearreal-timeclimate

informationandnon-traditionallocationintelligencesourceslikeGoogleEarth

EngineandCartotohelpfillinthegaps.Inshort,bettervisibilitycanenablebetterscenarioplanningandstrengthenoverallresilienceforbrands.

Designplanningandproduction

Inventorymanagement,orlackthereof,isoftenabigcostdriverintheindustry.Moreeffectiveplanningandstoreallocations

upfrontcanmeanlowercostslater,

whetherthatbethroughstore-to-store

transfersormarkdownsavings,andcanlessentheneedtomakefewerlast-minutedecisions.Googleishelpingcompanies

combattheproblemofoverproductionandinaccurateforecastingwithmachine

learningviatheirflexibledemand

forecastingmodel.Brandshavealso

beenexperimentingwithdigitalproduct

design,photo-real,3Dfashiondesign,andanimationtohelpreducesamplecosts,

enablemorerapidprototyping,andgain

end-to-endvisibilityacrosstheirsupply

chainforplanningandinventorypurposes.TommyHilfigerforexample,hadsuch

successfulresultswiththeirdigitalproductdesigntool,Stitch3D,thattheyopenedituptootherbrands.Oneofthechallengeswiththisnewtechnology,however,has

beentranslating2Dsketchesinto3D.Butthroughnewadvancesinmachinelearning,it’snowpossibletomoreeasilycreate3Dimagesfromahandfulof2Dimages,and

typicallymucheasiertoputthesechangesintoplaceatscaleatareducedcost.

Moreandmore,itseemsthatforeach

challengeretailersface,there’sapromisingsolutiononitsway.

Logistics

Overthepastseveralyears,online

purchasesexplodedingrowthandcreatedasomewhatfalsehopeofaretailspendingwindfall.In2022,however,US$816billionworthofretailmerchandiseorderedonlinewasreturnedasbuyersfeltthepinch

ofinflationandbecamemoreselective

withwhattheychosetokeep,alongwiththeregularpracticeofover-purchasing

withtheintenttoreturn(i.e.,customers

purchasingthesameproductinmultiplessizesorcolorstotryonathome).Reverselogisticshavecreatedamajorproblemforcompaniesfrombothasustainabilityandsalesperspective.NewAI-enabledlogisticstoolscanhelpbrandsautomatically

determinewhereitemsshouldbe

returned,planefficientshippingbetweendistributioncenters,reducethenumberofsplitshipments,andoptimizestore-to-storetransfers.AI-enabledfleetroutingisalsohelpingreduceemissionsandoverallcarbonfootprintacrosstheindustry:UPSgainedUS$400millionincostsavingsandsaved10milliongallonsofgasperyear

workingwithGoogleCloudtocreatenewroutingsoftware.

Howtohelpdrivesustainabilityinretail—whileprotectingmargin

10

Newbusinessmodels

Brandsacrossvariouslevelsoftheretaillandscapehavetakennoteoftheuptickinconsumerinterestbasedonaclassicshoppingtrend—resale.Fromhighstreetfashiontoheritageluxurytohigh-end

departmentstores,almosteveryone

seemstobeinoncircularity—even

SelfridgescurrentlyhasarangeofvintagedesigneraccessoriesondisplayattheirLondonflagshipforresale,aptlycalled

RESELFRIDGES.

Today,circularityis

consideredmainstream,and

estimatedtobeworth

USD$4.5

trillion

ineconomicbene?tsby2030

Newcircularbusinessmodelsarefueling

growthacrossindustriesandappealingtonewconsumers,aswellastotheneedsofmoresustainability-consciouscustomers.Today,circularityisconsideredmainstream,andestimatedtobeworthUSD$4.5trillionineconomicbenefitsby2030.Inansweringthiscallfromconsumers,circularbusinessmodelslikerecommerceandclothing

rentalserviceshavebeenchallenging

businessestoscaleprofitablygivenhighlyfragmentedstockkeepingunits(SKUs).

Now,AIishelpingmakeiteasierfor

companiestocertifygenuineproducts,

pricethemaccordingly,andsurfacethemtointerestedcustomers.Becauseof

that,companieslikeInditex,lululemon,

Gucci,andmorearenowabletocontrolhowtheirproductsshowupinthese

markets.RentalandrecommerceserviceslikeTrove,TheRealRealandthredUPare

alsoembracingnewtechnologytohelp

powertheircircularbusinessmodels.Forinstance,clothingrentalserviceNuuly,

ownedbyUrbanOutfitters,beganusingnewcloud-basedtechnologyin2019to

gainvisibilityacrosstheirlogisticsarmandmeasuresustainability.

“Weknewtherewasalreadyamassivemarketforpreviouslywornlululemonproducts[…]Now,newandexisting

guestscancomedirectlytousfor

thesegentlyusedproductsandletushandlethelogistics,whileextendingthelifeoftheproductstheylove.”

MaureenErickson

SeniorVicePresidentofGuestInnovationatlululemon

Ithelpsthemseehowfaranygivenpiecehastraveled,howmanytimesitwasrented,andhowandwhereitmakessensetoalterdeliveriesbasedongeolocation,which

helpsthecompanystayontopoftheircarbonfootprint.

Justlaunchedin2023,GucciContinuum

usesthebrand’sarchivalfabricsand

unsoldaccessoriestocreatenewand

uniquegarmentsthatpromotecircularity.Canadiantechapparelbrandlululemon

pilotedtheir“LikeNew”recommerce

programinselectpartsoftheUnited

Statesin2021,whichofferstheirclienteleanopportunitytotradeintheirgentlywornlululemonapparelandaccessoriesfora

credittoputtowardsnewgear.MaureenErickson,SeniorVicePresidentofGuest

Innovationatlululemontoldus,“We

knewtherewasalreadyamassivemarketforpreviouslywornlululemonproducts

[…]Now,newandexistingguestscan

comedirectlytousforthesegentlyusedproductsandletushandlethelogistics,

whileextendingthelifeoftheproducts

theylove.”Shealsonotedtheprogram’s

abilitytohelpthecompanyconnecttoa

newaudience,“LikeNewhasenabledustoreachayoungeraudience,asourpremiumproductisofferedatamoreaffordable

pricepoint.”Beyondthat,100%ofprofitsfromtheprogramarereinvestedinto

thecompany’ssustainabilityinitiatives,whichcurrentlyincludescircularproductdesign,renewandrecycleprograms,andenvironmentalimpactprogramsfortheirbrick-and-mortarstores.

Spain’sInditex,parentcompanytobrandsincludingZara,MassimoDutti,and

Oyshoembedssustainabilityacrossthe

organization,includingtheshopfloor,HQ,andmanyplacesinbetween.JavierLosada,thecompany’sChiefSustainabilityOfficer,isworkingtomakesureallemployeesfeelinchargeofchange,nomatterwheretheysitwithintheorganization.Inditexrecentlystartedaprogramcalled‘Changemakers’thatempowersemployeestofindnew,

innovativewaystohelpmakesure

sustainablepracticesreacheachstore.

“Ouremployeeshavetheconnectiontoourproductsandcustomerseveryday,”says

Losada,addingthattheChangemakers

programgivesemployeestheopportunityto“workonfeedback,ideas,andconcernsfromourteamsandcustomers.”The

programiscurrentlyupandrunningacross53marketsand,intime,willlikelyextendtoInditexstoresaroundtheworld.Employeeswerealsothefirstcustomersofthe“Zarapre-owned”circularityprogram,which

helpsextendthelifeofgarmentsthroughrepair,donation,orrecycling.Sincethe

employeepilot,in-marketcustomersarenowalsoenjoyingtheopportunitytohelptransformthelifeoftheirclothingthroughZarapre-owned.

Acrosstheboard,theseinitiativesare

helpingstimulateinnovationthroughouttheindustry,increasingdifferentiationandcompetitioninthemarket,andhelping

reducepressureontheenvironment.

Howtohelpdrivesustainabilityinretail—whileprotectingmargin

11

Bolsteringthebottomline

75%

ofCxOssurveyedsaidtheir

organizationshave

increasedinvestments

insustainabilityover

thelastyear

Becominganauthentic,sustainablebrandcanpaydividends—withyourcustomers,inthemarket,andintheboardroom.

Beginningwithcloud-basedtoolsand

solutionsthathelpenabledigitaltrackingandreportingcapabilities,companies

canstartattachingverifiablemetrics

tosustainabilitythatsatisfyregulatoryreportingrequirementsonthehorizon.Butinvestinginandadoptingthesenewtoolscanleadtomuchbiggerbenefitslikeoverallcostsavings,operational

efficiencies,increasedcustomerloyalty,sellingmoreatahigherpriceandhighermargins…oralloftheabove.

DeloitteGlobal’s2023CxOSustainabilityReportshowsthatsome75%ofCxOs

surveyedsaidtheirorganizationshave

increasedinvestmentsinsustainability

overthelastyear,with56%ofCxOsnoting

84%

ofleadersagreethatboth

theirorganizationsandthe

globaleconomycancontinue

togrowwhilealsomaking

realprogressinachieving

climatechangegoals

aslightincrease(between6-19%)and19%notingasignificantincrease(20%ormore).Andbeyondthepositiveimpactit’shavingonourplanet,CxOsareseeingthebenefitsoftheseinvestmentsexpandintoareaslikebrandrecognition,customersatisfaction,andincreasedsupplychainefficiencyandresilience.

Thetruthis,nosingleretailerhasitfiguredout—noranyindustry,forthatmatter.Butoptimismabounds,as84%ofleadersagreethatboththeirorganizationsandtheglobaleconomycancontinuetogrowwhilealsomakingrealprogressinachievingclimate

changegoals.Focusingonprogress–not

perfection–hasalreadybeguntopayoffformanykeyindustryplayersasevidencedinthebrandstoriesabove.Havingapurposebeyondprofitisanopportunitytodrive

meaningfulconnectionwithconsumers,

19%

notingasigni?cantincrease

(20%ormore)

andenactingpositivechangecanonly

standtobenefitacompanylong-termbothinandoutoftheboardroom.

Astheretailindustryworkstogetherto

becomemoresustainable,companies

shouldcontinuetoshifttheconsumer

mindsettowardtrustbyconnectingwiththeiraudiencesmoreauthenticallyand

withgreatertransparency.Combinedwiththetech-enabledtoolsthatcanhelpdrivesustainabilityfaster,acompany’seffortscanmeanhighermargins,higherrevenue,andmoreROIacrosstheboard.

Ultimately,what’sgoodforbusinesscanbegoodfortheplanet,too—andthatseemslikeawin-winforeverybody.

1.JohnnyWood,“HowGenZ’ssustainabilityconcernsareinfluencingothers,”WorldEconomicForum,March18,2022.

2.DrewDesilver,“IntheU.S.andaroundtheworld,inflationishighandgettinghigher,”PewResearchCenter,June15,2022.

3.DeloitteGlobal,StateoftheConsumerTracker,accessedMarch12,2023.

4.EuropeanCommission,“AEuropeanGreenDeal,”accessedFebruary17,2023.

5.NewYorkState,“NewYork’snation-leadingclimateagenda,”accessedMarch3,2023;EnvironmentalDefenseFund,“Californialeadsfighttocurbclimatechange,”accessedMarch3,2023.

6.DeloitteGlobal,CxOSustainabilityReport,January2023.

7.GoogleCloud,“Retailersseeurgentneedforsustainability,butlackdirection,”June23,2022.

8.DeloitteGlobal,Impactofinternational,openstandardsoncircularityinEurope,April2022.

9.DeloitteGlobal,GlobalPowersofRetailing,February2023.

10.ibid

11.DeloitteGlobal,CxOSustainabilityReport,January2023.

12.ibid

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