If the UK is to become carbon neutral by 2025, we must all become conscientious retail consumers; people who think through the social, economic, and environmental impact of every purchase we make. We can no longer substitute “we will” with “we should” when it comes to making buying decisions. If things are going to change, only positive actions count. This is no time for sloganeering. All individuals, companies, and organisations need to re-set, re-focus and start doing things differently.
But it’s going to be a challenge, and as such there will be conflicting factors to consider. Whilst we want to save the planet, we have become extremely materialistic, and the Covid-19 crisis has probably exacerbated this. Retail therapy has long been considered as something to put the spring back in your step when the world around you seems determined to stick out its leg and trip you up. So, what can we do that addresses the needs of every stakeholder when it comes to changing buying habits?
The next generation of retailers
Recently I set a challenge for the students at Leeds Business School. It was to come up with a solution that addresses the growing issue within the retail industry of online returns. The implications (both economic and environmental) surrounding the annual £7bn online returns (Rebound Returns) are significant, and the industry needs to do something about it. The students are right at the beginning of their retail careers. They know that historic business decisions were made that have contributed directly to the problem, but whilst they can’t be unmade, they know that we don’t have to continue to live with the consequences.
The challenges the retail industry faces
Challenge can be daunting. Some problems are complex, with lots of inter and intra connected processed, procedures and policies. Take the issue with online retail returns. The problem seems simple to solve; customers send back too much stuff, so if they stopped this then there wouldn’t be an issue. So, why don’t we make returning products more difficult, maybe start charging the customer for the privilege? It is reported that it costs retailers an average of £20 to process an online package (nShift). But if we start doing something that our competitors don’t, and it’s perceived as a negative then our customer will become their customer. Customer loyalty is not what it was. If all retailers adopted the same returns policy, then this might be part of the solution, but how likely is standardisation across all retailers? Especially in an area where businesses may believe they have an advantage.
Tough as these challenges are, we can’t put them on the ‘Too Hard To Solve’ pile, but we do need to break them down into smaller pieces. This will enable us to focus on the causes rather than the overall problem. If we apply this logic to the problem of excessive online retail returns, we might begin by asking what the main reasons given are for why items are sent back. Research into this suggests the following:
- 30% of returns are because an item is faulty or damaged
- 27% because the item is perceived to be of poor quality
- 27% because the item purchased is not as it was described online
- 20% were multiple purchases of the same item (in different sizes)
- 18% caused by delivery issues
- 17% were no longer required when they arrived
(All stats from Rebound Returns)
Setting out to resolve all of these matters in one go would be daunting, even for the most intrepid of problem solvers. When you take on too big of a challenge and try to resolve it with one solution, progress will be slow, and the chance of a successful outcome extremely unlikely. But picking one area and focussing on it will deliver rapid and sustainable results. As an example, consider that 27% of returns are made because when the item arrives it does not match the description posted against it online. What can we do about this?
The days of systems only permitting a description of ‘Black Dress’ (short description on the till) or ‘Black Cocktail Dress’ (longer description on a sales report) are gone. Today, product descriptions can be many and varied. They can be any length from a few words to essay length articles about fabric composition, size and fit, fashion tips; literally anything you want someone to know about a product can be held and made available in a form appropriate to different selling channels. Not only words either but pictures, videos and increasingly products are augmented reality (AR) ready. So how can 27% of online returns be because when they arrive in the customers’ hands they don’t match the online description?
Sometimes retailers have the right technology available to them, but they don’t use it well. I have always said that even the best technology won’t make a poor retailer a good one. But if a retailer isn’t able to curate descriptions in ways that makes their products stand out from the crowd, then it’s time they should be able to.
Retail247 have a solution aptly named ‘Origin‘ which allows retailers to create, enhance and share product and price data across different and varied sales channels. Born in the digital age and designed specifically for retail, Origin is fast becoming the PIM platform of choice for retailers who really see the value in providing their customers with the best quality and most appropriate information about their products. Our clients include Reiss, Crew Clothing and LK Bennett amongst others.
Consumerism doesn’t have to be the enemy of environmentalism. There is a scope to doing things differently. Yes, it will need a lot of unbiased thinking, a fair amount of compromise and a whole lot of understanding, but the most important thing to remember is that progress needs to be made. I am really looking forward to seeing what the students from Leeds Business School come up with.