Get ready for an exciting trip through big ideas in retail and fashion this week. We’re talking about a new way to make sustainability profitable, smart city delivery hubs and why many retailers may soon ditch the major carriers. Plus, we’ll peek at how one company is tackling climate change from the inside out and reveal some shocking stats about shoppers that could change how you do business. Curious? Let’s get into it.
Fashion Opens the Doors to ‘Econogy’: When Sustainability Yields Economic Benefits
The 2023 Techtextil and Texprocess fairs in Frankfurt, Germany coined a new term that’s already changing how people think about fashion and sustainability: econogy. This fresh concept is flipping the script on the old profits-versus-planet debate, promising a future where fashion brands don’t have to choose between going green and staying in the black.
The Rise of Econogy: More Than Just a Hot Trend
Forget everything you thought you knew about sustainability in fashion. Econogy, a clever mash-up of economy and ecology, is rewriting the rules of the game as a whole new way of doing business with exciting fashion brands. By treating sustainability and profitability as two sides of the same coin, econogy is helping companies boost efficiency, slash costs and stay competitive in the long run. And the best part? It’s meeting the growing demand for eco-friendly fashion that doesn’t break the bank.
Tech Takes Center Stage in the Econogy Revolution
If econogy is the star of the show, then technology is its behind-the-scenes mastermind. The fashion industry is going all-in on Industry 4.0 solutions, using everything from cloud computing and the Internet of Things to big data and AI to get a crystal-clear view of their supply chains. These high-tech tools are making waves at every stage of production. In the cutting room, smart tech slashes material waste — a big deal when raw materials make up 60-70% of production costs. On-demand production systems are revolutionizing warehouse management and cutting down on unsold stock. And new platforms are tracing fabric origins from fiber to consumer, helping brands stay ahead of tough new regulations.
Urban Delivery Hubs: A Game-Changer for Last Mile Logistics?
Ever wondered why shipping costs seem to skyrocket for that final stretch to your door? Last mile delivery has always been a headache for shippers, but a new concept is shaking things up. Urban delivery hubs (UDHs) are emerging as a potential solution, promising to streamline the process and cut costs. There’s just one catch — you need to be moving a mountain of packages to make it work.
Rethinking the Final Stretch
Imagine your package bypassing the usual maze of distribution centers and heading straight for a hub on the outskirts of your city. From there, local drivers take the wheel, getting your order to your customers faster and more efficiently. It’s a simple idea that could revolutionize last mile logistics, saving shippers money and making life easier for long-haul drivers.
Volume is the Name of the Game
While UDHs sound great in theory, they’re not a one-size-fits-all solution. The concept relies on having a high enough volume of packages to justify the setup, which means it’s currently best suited for retail giants and major manufacturers. But don’t count out the little guys just yet.
The solution? Some experts suggest that third-party logistics companies or industry associations could team up to create shared hubs, opening the door for more businesses to benefit from this innovative approach to final mile delivery.
Retailers Rethink Costly Deliveries As Customers Demand Speed
Remember when free two-day shipping felt like a luxury? Those days are long gone. Now, consumers want their packages ASAP, and retailers feel the squeeze. A new AlixPartners survey reveals how companies adapt to sky-high delivery costs while trying to keep impatient shoppers happy.
The Price of Impatience: Same-Day Shipping Isn’t Paying Off
Retailers are in a bind. While 92% of consumers say free delivery influences their buying decisions, 76% of retail executives report that per-package delivery costs have risen since last year. Even worse, three out of four say home delivery doesn’t boost their bottom line. The push for lightning-fast shipping might be popular but could be more profitable.
Ditching the Big Names: UPS Loses Ground as Retailers Seek Alternatives
Retailers are getting creative to keep the costs of their delivery ecosystem in check. Instead of putting all their eggs in one basket, three-quarters are now juggling multiple last mile delivery options. It’s more than variety; many are moving away from the delivery giants to bolster their carrier diversification. In fact, two out of every five retailers surveyed have shifted some packages away from FedEx and UPS in the last year. This change has hit UPS particularly hard, with their status as the go-to carrier dropping from 35% to just 25%.
Decarbonizing the Supply Chain: RS Group’s Bold Moves
Ever wondered how big companies tackle their carbon footprint? RS Group, a major distributor of industrial products, is taking on this challenge head-on. In a recent Q&A, their top brass shared some eye-opening insights about cleaning supply chains.
The Hidden Giant: Scope 3 Emissions
You might think a company’s biggest carbon impact comes from its own operations. Think again. A whopping 90% of greenhouse gas emissions often lurk in the supply chain — Scope 3 territory. RS Group isn’t shying away from this beast. They’re measuring it, setting clear targets and making it everyone’s business.
The company’s VP of social responsibility put it bluntly: “You can’t tackle what you can’t see.” By embedding sustainability KPIs throughout the company, they’re turning eco-goals into everyday action.
Collaboration: The Secret Weapon
Here’s where things get interesting. RS Group isn’t trying to go it alone. They’re reaching out to competitors, suppliers and even customers to crack the sustainability code together. It’s not just about sharing knowledge — it’s about creating systems that make it easier for everyone to cut emissions. From reusable packaging experiments with suppliers to gathering customer ideas, they’re building a network of eco-innovation. The message is clear: No single company can solve this puzzle alone.
Retailers Are Missing 85% of Shoppers: A Golden Opportunity for Your Supply Chain
A recent Bluecore report has uncovered a startling fact: Retailers only identify 15% to 27% of their visitors. That means up to 85% of potential customers are essentially invisible; considerable untapped potential for retailers.
The Power of Recognition: 53% Higher Repeat-Purchase Rates
When retailers do manage to identify their visitors, magic happens. Companies with high identification rates see repeat-purchase rates soaring 53% above average.
Conversely, those who aren’t keeping tabs on their shoppers are falling behind, with repeat-purchase rates 33% lower than their savvier competitors. It’s not just about recognizing faces, though. It’s about creating a personalized shopping experience that keeps customers returning for more, regardless of their channel or touchpoint. And speaking of coming back …
The Loyalty Timeline: From First Buy to Year Three
Here’s a little secret: Shoppers spend 69% more on their second purchase than their first. But the real challenge? Keeping them engaged long-term. In the first year, 78% of buyers make more than one purchase. By year two, that number drops to 17%. And by year three? Only 6% of customers are still actively buying. So, clearly, the first two years are most critical for building lasting relationships with shoppers; personalization brings profits.
Riding the Wave of Change: OneRail’s Smart Solutions
From eco-friendly fashion to invisible shoppers, we’ve covered a lot of ground today. Ready to put these insights into action? Here’s how OneRail can equip your business for success:
- Unparalleled Courier Network: Place your deliveries in trusted hands by tapping into OneRail’s massive national network, boasting over 12 million vetted drivers.
- OmniPoint® Platform: Leverage OneRail’s OmniPoint Platform for automated rate shopping, smart matching and real-time visibility to guarantee timely and cost-effective deliveries.
- Exceptions Assist™: Benefit from proactive monitoring, with a dedicated team of logistics experts at the ready 24/7 to tackle any challenges and disruptions, safeguarding your on-time delivery rate.
No matter your industry, OneRail can transform your logistics strategy. Schedule a demo today to find out how.
