The Indian version of Shark Tank has been at the center stage these days for all right reasons. Some interesting concepts were presented in the first edition of this business reality show. Two interesting eco-friendly businesses that successfully bagged a deal were Bamboo India and Carragreen.
Bamboo India, an initiative by a Pune based couple, provide an alternative to plastic and has in its product portfolio Bamboo toothbrush, Bamboo earbuds, and several corporate gift items made of bamboo
Carragreen, a startup headed by Mother-in-law and Daughter-in-law duo, aims at creating products that are a substitute for plastic products that too at an affordable price.
These startups epitomize Badalte Bharat ki nayi soch (New thinking of the Changing India) which is the tagline for Shark Tank India. The rise of such startups points towards the emerging trend of green marketing in India.
What is Green Marketing
Green Marketing refers to the marketing of environmentally safe products. It is not just limited to the products but also incorporates all the activities carried out to make the product from sourcing to manufacturing, packaging, delivery, consumption, and finally disposal. These are carried out in a manner that is less detrimental to the environment. As more and more people are getting aware and experiencing the harmful effects of Global warming, waste disposal, and pollutants, the call for eco-friendly products and processes is growing in demand. Green marketing efforts show the commitment of a brand towards social responsibility and sustainability.
Interestingly many companies seeing the growing demand for eco-friendly products create false narratives and provide the wrong impressions about the products to gain an advantage in the market. This process is called Green Washing. Customers are deceived or misled by the companies to believe that their products are environmentally sound and/or have energy-saving benefits
Global Scenario
Globally, Green Marketing has been an established practice, especially in developed countries like the US. This is due to the higher consumer willingness to adopt sustainable products. As per Hubspot, globally about 49% of consumers are ready to pay a premium for green products. The sustainability market in the US is worth $150 million. More and more companies are coming forward in adopting green practices due to the big market potential and regulatory pressures as well.
In more recent news 70 business entities, some of whom are accused of being the biggest plastic polluters of the world called up the UN to implement a global pact to reduce plastic pollution and also to promote and increase recycling. These entities include Unilever, P&G, Nestle, Pepsi-Co, Coca-Cola, Mondelez, Walmart, and L’oreal among many others who have advocated for such a treaty and signed an open letter.
Green Marketing in India
Green Marketing as a concept has been present in India for some time now and has been on the rise in recent years. The enhanced internet connectivity, increase in overall education level, consumer maturity, and regulatory push have contributed significantly towards this movement. The recent pandemic has made people more inclined towards opting for natural and eco-friendly products and the revival of Ayurvedic products has also given it a fillip.
The Indian Government’s commitment to Sustainable Development Goals is reflected through various Govt. schemes that aim at promoting Renewable Energy, Control Plastic Pollution, and restoring degraded lands. India is already well on its track and would achieve the Paris commitment targets well ahead of 2030. The recent Union budget has also laid more emphasis on climate action and a green future.
The Government of India through a notification has put a ban on single-use plastic from July 2022 onwards. This includes the manufacture, import, stocking, distribution, sale, and use of single-use plastic, including polystyrene and expanded polystyrene commodities such as earbuds with plastic sticks, plastic flags, ice-cream sticks, polystyrene for decoration, plates, cups, glasses, cutlery such as forks, spoons, knives, straw, trays, wrapping or packing films around sweet boxes, invitation cards, and cigarette packets, plastic or PVC banners less than 100 micron, stirrers, etc.
Many Indian companies have been playing an instrumental role in promoting eco-friendly practices and have been leveraging green marketing. Appliance brands like LG, Samsung, Haier, etc. have been coming up with eco-friendly products with energy-saving technologies. IT Majors Wipro, Infosys, HCL, and TCS have been at the forefront of eco-sustainability through various practices. In the energy sector Tata power, Suzlon, Adani Power, and Renew Power have been leading the renewable energy plans.
Let’s look at some of the recent efforts by Indian FMCG companies and retailers:
Colgate-Palmolive, the oral care giant has launched recyclable toothpaste tubes in India as a part of its commitment to sustainability. Colgate, which is the market leader in the oral care segment with a 53% share and a market cap of Rs 15000 Cr is the first to take such initiative at such a large scale. They have partnered with EPL for this initiative and are open to sharing this technology with other companies. Their primary competitor HUL has also laid out plans for use of recyclable tubes for toothpaste by 2025.
Dabur India has also planned to do away with cartons for their Dabur Red Toothpaste. They have partnered with Reliance Retail for the sale of these products without carton packaging in some of its stores. The paper thus saved would be redirected towards creating notebooks for unprivileged children supported by Child rights and CRY. Dabur expects to save approx. 150 tons of paper and eliminate waste from the environment.
P & G India had announced the launch of INR 200 Cr Environmental Sustainability Fund in 2021. P&G said that this fund is in line with its global sustainability goals ‘Ambition 2030’ aimed at creating a positive impact on the environment and society. The company will be using the fund to collaborate with external partners on environmentally sustainable solutions.
HUL has collaborated with Banyan Nation to make recyclable packaging g for its liquid detergent brand Surf Excel Matic. As a result, HUL’s Surf Excel has transitioned to using 50% recycled plastic in their bottles since Aug 2019. With the help of Banyan Nation, HUL has recovered and recycled more than 1,000 tonnes of plastic waste into packaging by manufacturing over 100 million bottles. Riding on this success, HUL now aims to reduce their plastic footprint by at least 50% through the eradication of 1,00,000 tonnes of plastic and using at least 25% recycled plastic by 2025.
In July 2021, HUL launched the ‘Smart Fill’ vending machine for its range of Home Care products to reuse, reduce and recycle plastic. In the pilot phase, the vending machine has been installed at Reliance Smart Acme Mall in Mumbai. Consumers can bring empty bottles to fill or buy the bottles at a minimal price.
The growth of e-com retailers had significantly added to the plastic pollution problem with lots of plastic being used for even a single order. E-retailers like Flipkart, Amazon, Myntra have been the major culprits. However, they are now taking steps to significantly reduce plastic usage.
Amazon had pledged to take several steps to completely eliminate the usage of single-use plastic across its fulfillment centers in India. As per Amazon, they have started using paper cushions in their packaging instead of bubble wraps and air pillows from December 2019 onwards. The company has also replaced plastic tapes with bio-degradable paper tapes. Amazon aims at making all shipments net-zero carbon, with 50% net zero carbon by 2030.
Myntra, India’s biggest fashion retailer has completely eliminated single-use plastic from its packaging. They have replaced bubble wraps, plastic tapes, and plastic covers with shredded materials, paper tapes, and paper boxes and covers. Through these steps, they have been able to divert 670 tonnes of plastic as of September 2021. Myntra has also partnered with Better Cotton Initiative as a part of promoting sustainable cotton farming practices.
As mentioned earlier, many start-ups are coming up in India which differentiates its brand through Green marketing. It is worthwhile here to mention about Ecoware, a brand that is considered India’s biggest disruptor in sustainable packaging space as per Lifestyle Asia. You must have seen and/or used their packaging if you have enjoyed products from Chaayos, Subway, Haldiram, and Cinnabon. Founded by Rhea Mazumdar Singhal, Ecoware provides eco-friendly products made of 100% nature and bio-degradable materials to ensure a circular economy eliminating waste.
Green Marketing Strategies
Some of the Green marketing strategies that can be adopted by established as well as new brands are :
- Opportunities: Look out for opportunities in the entire system from sourcing to disposal to incorporate eco-friendly materials, processes and services.
- Green Certifications: Certification from regulatory authorities put a stamp of authenticity on the brand
- Green Culture: The culture within the organisation should promote sustainability. For instance, going paperless for day-today activities could be a practice within the organisation.
- Communication: Creating awareness about green practices and eco-friendly efforts are essential to get noticed by the environment conscious consumers
- Green initiatives and events: The brands should take part in green initiatives which align with their corporate goals. The should attempt to make their events also Green.
- Strict No to Greenwashing : False promises to mislead customers could cause irreversible harm to the brand image.
In conclusion, though the Indian market is still at its early stages of development with regards to Green Marketing, the emerging trends are indicative of the bigger potential that it beholds. The increasing customer knowledge and regulations will further improve the overall sentiment towards the adoption of Eco-friendly business practices. However, there must still be concerted efforts from Govts and companies to increase awareness about green products and eco-friendly processes.
