brand strategy
Posted by Ben Berkon on February 26, 2010 05:01 PM
Whether it’s cutting down on emissions, offering “green” products, or using reusable materials, big companies have been pushing eco-friendliness like never before. And Wal-Mart is no different.
The mammoth retailer announced this week that the company would undergo a “green” overhaul – including its plan to cut more than 20 million metric tons of greenhouse gas emissions, offer more “green” products than ever before, and rethink how to package and transport products by using reusable materials.
Looks like someone is giving Al Gore a run for his Nobel Peace Prize, right? Well, sort of.
On the surface, Wal-Mart appears to be an eco-conscious business trying to stay attuned to customers environmental concerns, and, well – it is. But the nation’s largest retailer also has its own interest in mind, which isn't shocking considering it's a business. Just like regular people, Wal-Mart has bills to pay – gas and electric bills, for example. And the escalating cost of energy has the brand worried.
However, change is complicated, and though the move does have a feel-good, eco-friendly vibe, it does pose serious challenges for the brand's suppliers. Since Wal-Mart is holding itself to these “high standards,” it is expecting its suppliers to do so as well.
This means that the suppliers are actually forced to produce eco-friendly products and materials – not, necessarily, Wal-Mart. Suppliers, presumably, not wanting to lose a major customer, will adjust to the brand's new eco-friendly standards. However, the daunting challenge for suppliers is a gain for Wal-Mart – enabling it to compensate for its own high-energy costs, while still offering the lowest prices to its customers.
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