London-based Kavanagh’s Budgens Belsize Park has seen a spike in sales of products displaying smart “climate labelling”, developed through a partnership between digital label specialist SES-imagotag and food sustainability expert HowGood.
The digital labels were able to communicate key sustainability attributes to shoppers via SES-imagotag’s Vusion IoT Cloud platform using data on over two million foods sourced from HowGood.
Products that used less water than average in their production were labelled ‘Water Smart’; those that had lower greenhouse gas emissions than average were flagged up as ‘Climate Friendly’, products with seven or fewer ingredients were highlighted as ‘Clean Label’ and foods that respect workers’ rights and dignity carried a ‘Fair Labour’ label. There were also signs for products that were ‘Minimally Processed’ and for foods that could claim ‘Low Synthetic Inputs’.
Using integrated SES Pulse analytics software, the store measured an average increase of 25.8% across all products labelled with HowGood attributes. While all attributes contributed to upsells, products with ‘Fair Labour’ labels showed the most significant increases of 45.1% on average.
The companies claim that the positive impact goes beyond initial results for individual products, promoting the image of Kavanagh’s as a sustainable and ethically-conscious store, whilst driving revenue and loyalty from consumers who care about the environmental and social impact of their purchases.
The store’s results support NielsenIQ research that reveals consumers feel empowered to shop sustainably and respond positively to brands that demonstrate healthy products for both the consumer and the environment. In fact, 72% of consumers are willing to pay a premium for products claiming to be sustainable (Nielsen).
Alexander Gillett, CEO and co-founder of HowGood, said: “We are delighted to partner with SES-imagotag to incorporate our sustainability data into a modern solution for retailers looking to capture the quickly emerging market of eco-conscious consumers. The global retail landscape is changing, and this partnership will enable forward-thinking retailers to clearly communicate their value to customers, remain dynamic in their in-store marketing, and drive revenue while having a very significant and meaningful impact on the planet.”
Roy Horgan, SEVP strategy, marketing & communications of SES-imagotag, said: “We are very excited to partner with HowGood, a pioneer and leader in sustainability intelligence for food companies. Together, we can offer a unique value proposition to our customers and consumers, by delivering real-time and trustworthy sustainability information at the shelf-edge, where most purchase decisions are made. This partnership is aligned with our vision of creating a more sustainable and positive commerce, where physical stores become digital assets that can provide better services and experiences to shoppers.”
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