The transition to a circular economy represents an ambitious movement for retailers and all aspects of the economy.
Retailers are well positioned to drive circularity at scale. Given their important role in the value chain and direct relationships with ever-more-engaged consumers, retailers have an opportunity to leverage these strengths, embrace new models and create real impact.
However, research identifies a level of contradiction. Although in some cases customers appear are willing to pay more for products that are associated with ‘social’ and ‘environmental’ benefits, customers seem less likely to pay extra for ‘circular products’ (i.e., reused, refurbished, remanufactured).
Therefore, to drive circular economic practices that deliver positive outcomes for business, the community and the environment, retailers need to develop a greater understanding of the barriers and constraints for customers.
This is something that the Australian Retailers Association Consumer Research Committee intends to uncover. The committee has funded Queensland University of Technology researcher Dr Rui Torres de Oliveira, to undertake a study to understand how consumers perceive retailers’ strategies around corporate social responsibility practices, more specifically their actions in relation to the circular economy.
Over the coming months, Dr Torres de Oliveira will be undertaking surveys, to develop a business model innovation for a circular economy strategy for retailers.
“The project will investigate the connection between consumer preference and price sensitivity in relation to retailer sustainability profile and initiatives”, said Dr Torres de Oliveira.
“I will be examining customer purchase behaviour, and how it varies according to the retailer, product and service categories”.
“Moving towards a more circular economy could deliver benefits such as reducing pressure on the environment, improving the security of the supply of raw materials, increasing competitiveness, stimulating innovation, boosting economic growth and more importantly, creating jobs”.
The findings of this study are expected to be finalised and reported by mid-August 2021, and will be of interest to not only retailers, but also governments and advocacy groups.
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