In recent years, there has been an observable growing movement towards environmentally-conscious consumerism. More than 60% of respondents in a McKinsey US consumer sentiment survey were willing to pay more for a product with sustainable packaging. In another survey, 72% of respondents said they’re buying more environmentally friendly products than five years ago, and 81% said they expect to buy more over the next five years.
This growing demand for sustainable products presents a unique opportunity for D2C brands. D2C brands are often agile in product development, meaning they can quickly adapt their product lines to meet new demands, and hence can innovate and introduce sustainable products faster than brands that rely on traditional retail channels. On the other hand, D2C brands often thrive on authentic narratives via direct communication and engagement with their consumers.
But this transition is indeed not without challenges.
Challenges in switching to low-carbon materials for D2C brands
Switching to low-carbon materials represents a commendable shift towards more sustainable and eco-friendly practices, but it also comes with a set of significant challenges that need to be navigated.
- Initial costs and investment for research and development: developing and adopting low-carbon materials often involves substantial upfront costs in research, development, and testing. This can strain budgets and require a commitment to long-term sustainability goals. A McKinsey report noted that the shift in the manufacturing and energy sectors to meet the net zero GHG emissions target requires a 60% increase in annual spending on physical assets across sectors, rising from $5.7 trillion to $9.2 trillion.
- Supply chain modifications and challenges: if a company wants to use recycled materials, it may need to find new suppliers or modify its existing supply chain. This can be a challenge, as it may require the company to invest in new infrastructure or change its relationships with suppliers.
- Potential limitations in material properties and performance: low-carbon materials may not always match the properties and performance of traditional materials. Finding suitable low-carbon alternatives for high-performance applications, such as aerospace or certain medical devices, can be particularly challenging.
- Market readiness and consumer acceptance: some consumers may prioritize sustainability, while others may prioritize price and performance. Educating consumers about the benefits of low-carbon materials and addressing potential misconceptions or doubts is crucial. This has led to the idea of incorporating low-carbon marketing to improve customer’s understanding and give them a positive outlook about products made with low-carbon materials.
Strategies for effective integration of low-carbon materials for D2C brands
When a D2C brand decides to integrate low-carbon materials, it is important to have strategies in place to make the process seamless:
- Partnering with material experts and sustainable suppliers: these partners can provide guidance and support on the selection, use, and sourcing of low-carbon materials. This is admittedly easier said than done. tocco offers an AI-driven platform that simplifies this process. Through the marketplace, businesses can easily discover and connect with these sustainable suppliers, ensuring a consistent and reliable supply of low-carbon materials.
- Telling the brand’s story: brands can create compelling and transparent stories that highlight their innovations. Stories can be around the environmental impacts of the product, but also can be about the people and communities that are benefiting from the production.
References
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More than Half of Consumers Would Pay More for Sustainable Products Designed to Be Reused or Recycled Accentu. (2019, July 12). Accenture. https://newsroom.accenture.com/news/more-than-half-of-consumers-would-pay-more-for-sustainable-products-designed-to-be-reused-or-recycled-accenture-survey-finds.htm
Muralikrishna, I. V., & Manickam, V. (2017). Life Cycle Assessment. In Elsevier eBooks (pp. 57–75). https://doi.org/10.1016/b978-0-12-811989-1.00005-1
New LCA from TE: Organic Cotton Proven to Cause Less Environmental Damage than Conventional Cotton - GOTS. (n.d.). https://global-standard.org/news/new-lca-from-te-organic-cotton-proven-to-cause-less-environmental-damage-than-conventional-cotton#
Sustainability in packaging: Inside the minds of US consumers. (2020, October 21). McKinsey & Company. https://www.mckinsey.com/industries/paper-forest-products-and-packaging/our-insights/sustainability-in-packaging-inside-the-minds-of-us-consumers
Upcycled materials for a circular economy in Europe? | tocco. (n.d.). https://tocco.earth/article/upcycled-materials-for-circular-economy-Europe/
Wu, Z. (2020). Haode Evaluating the Life-cycle Environmental Impacts of Polyester Sports T-shirts. IOP Conference Series, 474(2), 022017. https://doi.org/10.1088/1755-1315/474/2/022017
