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Commerce Uncovers: Sustainability Sells

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It’s been impossible to miss the unprecedented rise of ecommerce in 2020 as global lockdowns sent people shopping online. It was the strongest growth for more than a decade. As a result, these increased online sales has meant more packaging and waste during a time when practices which exploit the planet need a critical overhaul. 

As a population however, a noticeable increase in people looking for climate friendly brands and solutions is seen, with 73% of UK consumers wanting to be more sustainable in 2021. With social causes and environmental impacts becoming more apparent and impactful, consumers are re-thinking where they buy and willing to spend with companies that align with their green values. For some, the cheaper cost is no longer the most important factor. 

Today’s shoppers are looking for brands that get it right and “walk the talk”, and nearly half are willing to pay a premium for brands that support recycling, sustainability and are environmentally responsible.   

Companies now need to look at how to align their values with sustainability. After receiving customers complaints, clothing brand Patagonia committed to replacing their plastic packaging with sustainable options, and documented their investigation and change process online. 

Elsewhere, global brands like L’Occitane are working towards a goal of using 100% recycled plastic in their bottles by 2025, whilst smaller independents like Serious Tissues are changing the world from the bathroom by selling UK made 100% recycled toilet rolls with no plastic packaging. 

Sustainability in ecommerce is moving from its status of being niche to essential. As consumers become more environmentally aware and take their money to ethical companies that are making the necessary positive changes, it’s time for more brands to make the better choice and show their sustainable credentials.  

To understand how brands can play a role in turning consumers’ climate change goals into reality, download and read our whitepaper Sustainable Now.

Sources 

Allure – https://www.allure.com/story/garnier-one-green-step-report-2021  

IBM – https://www.ibm.com/downloads/cas/EXK4XKX8  

Internet Retailing – https://internetretailing.net/sustainability/sustainability/uk-consumers-are-becoming-more-socially-and-environmentally-responsible–and-are-calling-out-brands-that-make-meaningless-climate-pledges-21022  

Internet Retailing – https://internetretailing.net/industry/industry/ecommerce-grew-by-46-in-2020—its-strongest-growth-for-more-than-a-decade–but-overall-retail-sales-fell-by-a-record-19-ons-22603  

Patagonia – https://www.patagonia.com/stories/patagonias-plastic-packaging-a-study-on-the-challenges-of-garment-delivery/story-17927.html  

Serious Tissues – https://serioustissues.com/  

 

 

Commerce Uncovers: The Range

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This month The Range became the latest online retailer to launch their own marketplace allowing other brands the opportunity to sell to their customers. Approved sellers will receive exclusivity rights to avoid competing with other sellers on the platform but will also have to deliver items to customers directly and manage returns process.  

We often hear about the rapid increase in DTC retail however the stats show that marketplace shopping is still miles ahead. In the UK 57% of shoppers now buy from marketplaces, compared to the 13% who order directly from retailer websites. This was accelerated further by the pandemic when between March and June of 2020, the average online shopper made 11 purchases from online marketplaces but just 3 from an online retailer* 

Whilst marketplaces like The Range are nothing new (*cough cough* Amazon) their existence gave many brands a lifeline during lockdowns as traditional retail outlets closed, but at what cost? Fees vary massively for brands looking to sell on marketplaces, The Range reportedly charge between 7-20%. When you factor in the cost of delivery, returns and fulfilment this doesn’t leave much profit margin for sellers. 

Sellers also need to be careful with their choice of marketplace. Whilst onboarding as many as possible might seem like a logical step, these marketplaces have different audiences in the same way as media does, so they need to make the right choice. This way they can fully optimise their marketplace homepage to be an extension of their brand.  

For those retailers such as The Range who have pivoted towards marketplaces, there is an opportunity for a huge additional revenue streamNot only can it provide a bigger pull to new and current customers to get more items in one place, but there is also advertising revenue to be made. Take ASOS as an example, they started selling media space within their listings to drive users to their most “strategic brands” but with job vacancies for programmatic execs it’s clearly something worth investing in.     

 

*Source: E-Commerce News  

 

 

Commerce Uncovers: The rise of buy now pay later

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It is recently reported that John Lewis is about to launch its own buy now pay later (BNPL) product as they respond to consumers thirst for more convenient and easier ways to pay. With talk of M&S following suit, BNPL schemes have been the fastest-growing online payment method in the UK last year and are predicted to account for 10 per cent of UK e-commerce spending by 2024.

The agreements, provided by firms such as Klarna and Clearpay, are a flexible payment method that allows customers to make a purchase when they may not have the funds at that time. They can then pay for their goods flexibly – and interest-free – either within a 14-day window, 30-day window or in instalments.

Klarna recently has raised $1billion (£720million) of new funds amid rapid growth. The Swedish firm reported to be valued at $31billion making it the most valuable fintech firm in Europe.

Greater regulation is not far behind, but that will only bring further consumer confidence in the payment mechanic.

Shopping cart abandonment is one of the biggest issues that online retailers still face, with a lack of payment options being one of the key drivers. The payments landscape however, is evolving at pace, responding to consumers’ drive for convenience and the ability to have more flexibility in their purchasing decisions.

Retailers need to think about what payment methods they want to integrate to give their customers the right choice.

What else we’ve uncovered:

You Tube is testing the ability to shop directly through videos, as it creates a shoppable platform.

Amazon quietly buys a competitor to Shopify as battle hots up.

Shopify to introduce Shop Pay to Facebook and Instagram to help businesses capitalise on social commerce

 

Sources

Econsultancy – https://econsultancy.com/stats-roundup-coronavirus-impact-on-marketing-advertising/

Internet retailing – https://internetretailing.net/mobile-theme/mobile-theme/almost-a-fifth-of-the-uks-population-have-used-buy-now-pay-later-as-they-shift-away-from-credit-cards-and-towards-mobile-22843

This is Money – https://www.thisismoney.co.uk/money/markets/article-9333191/John-Lewis-offers-online-buy-pay-later-scheme.html

 

 

 

Ancestry’s Look Back at WW2

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To commemorate the 80th anniversary of The Blitz this September, Ancestry commissioned 80 pieces of art to tell stories from their records about what everyday Britain was like during WWII. Our campaign marked the moment by transforming key UK cities into real life art galleries, showcasing the bespoke local art across cherry-picked print and outdoor. This activation bolsters Ancestry’s current brand campaign which includes brand TV, sponsorship of Sky History and an original content partnership with The Times.

 

Wagamama crowned winner at the Effies

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wagamama back in 2018 launched with their first ever brand ad into cinema. By embracing its distinctive soulful philosophy, and mastering the secret art of cinema, wagamama attracted a new swarm of urban butterflies through its doors. While others closed shop, our campaign delivered a 6% point penetration increase, grew like for like sales 8.8% vs. market growth of just 1.7%, and achieved a profit ROI of £5.21 for every £1 invested. Through meticulous media planning and an innovative cinema strategy, we broke the stereotypes of cinema and flipped it on its head. This successful campaign has been recognised and is now the winner of the 2020 Media Strategy & Idea category for the Effies.

 

Everything’s Better On The Beach Campaign wins ad of the month!

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Mid-December saw the launch of On the Beach’s new “Everything’s better on the beach” campaign. The campaign which will be running across OOH, digital, radio and TV across Q1, has already taken the prize for yougov’s ‘ad of the month’ in December. Across the first two weeks, the campaign generated a consideration uplift of 50% and an 11 pp increase in brand awareness.

Pataks & Jamie Oliver

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Pataks’ objective for this campaign was to educate around usage of paste pots, as insight showed consumers were not clear on how to use them. The partnership between Pataks and Jamie Oliver was a natural fit, as Jamie had been using their paste posts in his 15 minute meals for years. He created 6 recipes for digital platforms, which we utilised across Facebook and YouTube to maximise on completed views to aid education. This resulted in ad recall coming out 3.4x higher than the FMCG benchmark, brand awareness lifted 4.5x higher and purchase intent was 7.3x higher than benchmark!

 

Gousto aims to make recipe boxes ‘the UK’s favourite way to eat dinner’

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Gousto aims to make recipe boxes ‘the UK’s favourite way to eat dinner’

 

Recipe box subscription brand has made major investments in technology to help it deliver improved choice and delivery options, brand director says.

 

Gousto, the UK-based recipe box delivery service, is kicking off a £3m brand campaign, two months after securing a £30m cash injection that brand director Anna Greene said is helping the business scale its technology and transform its offer to consumers.

The push, “Give it some Gousto”, is the second ad createed by M&C Saatchi and with media agency the7stars, both of which were appointed last year.

It features a main brand TV spot, which will run for nine weeks from Sunday evening (1 September), supported by direct response TV ads and additional video created for social media, as well as partnerships with three brand ambassadors, Anna Whitehouse (Mother Pukka on social), Simon Hooper (Father of Daughters), and Joe Wicks (The Body Coach), who is also an investor in Gousto.

The campaign was created by Charli Plant and Laura Saraiva, and directed by Favourite Colour Black through Park Village.

Speaking to Campaign, Greene said that while Gousto had grown sales 70% in the last year – overtaking its chief competitor, Hello Fresh, in the process – and was now delivering 2.5 million meals a month, the first priority of the campaign was growing awareness and consideration, with three quarters of UK adults not yet aware of the brand, while “around half of the UK still don’t fully understand what a recipe box is”.

While this situation means there is still work to do to educate consumers on how recipe boxes work, Greene said Gousto’s growth meant that to maximise its potential, it now needed to be able to communicate its promised emotional benefits: cutting out the pain and hassle of shopping and planning meals, and reacquainting people with the joys of cooking.

“This year we really wanted to take it up a notch,” Greene said, describing the thinking behind the campaign. “We wanted to demonstrate how we can improve everything from top to bottom. We’re on a mission to be the UK’s most loved way of eating dinner.”

The creative, which uses visual motifs related to cooking such as chopping with a knife to move between shots, was intended to be visually arresting, but also was “quite a disruptive and destructive device to contrast between old and new,” Greene said.

The booming recipe boxes sector is packed with competitors – along with Berlin-based HelloFresh, which in 2017 topped the Financial Times ranking of Europe’s fastest-growing companies, there are several with a more targeted approach, such as the gluten and dairy-free, low carb Mindful Chef; fresh pasta specialist Pasta Evangelists; and Simply Cook, which leaves out the fresh ingredients but comes in a package that fits through a letterbox.

Gousto lacks a key identifying characteristic of this sort, but stands out because of its superior technology, Greened claimed. This had allowed it to offer 50 recipes to choose from each week, double the number offered by Hello Fresh, to bring prices down, and to offer delivery seven days a week at a wider range of timeslots.

The big challenge for Gousto, and the sector as a whole, is that most people’s usual shopping, cooking and eating habits are very well established, Greene said.

“We recognise it’s a huge behaviour change we’re trying to create here. People are so used to shopping in supermarkets or online, there’s years of entrenched behaviours.” This means Gousto needs to “give them really compelling reasons and motivating them to give it a try – that’s a more powerful way to look at the sector”.