Consumers buying luxury products are deeply concerned about sustainably sourced items, Chalhoub Group chief sustainability officer Florence Bulte said on Wednesday at The Retail Summit in Dubai.
The event is taking place at The Atlantis, The Palm, until March 15.
Speaking to ME Retail News, Ms Bulte said that retailers must show consumers that they are being ethical in sourcing their products and reducing waste.
“Making the packaging sustainable, reusable, bio-degradable, and reducing plastics are tangible actions retailers can take to relate with customers.”
Chalhoub Group has removed all plastic from packaging products across all the brands it is a franchiser.
“We have removed bubble wrapping from packaging products on our e-commerce platform as well.”
Ms Bulte added that sustainability is not just about the environment. It also ties in with ESG strategies to increase diversity within employees.
The company has hired more women, and also increased accessibility of stores to accommodate people with physical disabilities.
The company is also hiring younger employees to increase youth employment.
Meanwhile, the group is condensing the number of suppliers as well to reduce its carbon footprint, and sourcing locally wherever possible.
It is also switching to using suppliers who meet green certifications.
A report by management consulting company McKinsey recently showed that global sustainability investment has topped the $30 trillion mark.
It also showed that 70 per cent of consumers would pay a five per cent premium for a green product or service if it performed as well as a non-green alternative.
“Developing a circular economy is important for Chalhoub Group,” said Ms Bulte.
Adding that retailers should be customer-centric, Ms Bulte said that customers want to know the manufacturing trajectory of a product.
“Customers do buy from high-end brands for the name, the luxurious fabric, and the personalised experience, but they also want to know more. They want to know how the product was made, and what values the brand holds.”
60 per cent of luxury buyers in GCC also want to buy pre-loved items, which shows they are conscious of the environment and wish to be sustainable.
“Be customer-centric and actively listen to customers.”
Sustainability should help the business grow as well, and all employees should be on board.
“Have strong KPIs and a long term vision. Sustainability cannot be a short term vision.”
Ms Bulte said that retailers should begin their journey in sustainability now, if they did not earlier.
They also need to educate and engage with customers to better position their company as a sustainable brand.
