Table of Contents
Executive Summary
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- Impact of COVID-19 on ethical retailing
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- Figure 1: Short, medium and long-term impact of COVID-19 on ethical retailing, August 2020
- The market
- Strikes and protests have increased awareness around carbon emissions
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- Figure 2: Gen Z environmental behaviours, June 2019
- More people are going meat-free
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- Figure 3: Consumers’ meat eating habits, 2017-19
- Spotlight on diversity
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- Figure 4: Managers, directors and senior officials in employment in the UK, by ethnic group, 2014 and 2019
- Government reduces CO2 emissions
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- Figure 5: UK total greenhouse gas emissions headline results, 1990-2018
- Companies and brands
- Supermarkets are working to reduce packaging and waste
- Blockchain technology allows for greater transparency
- The Body Shop and Lush are viewed as the most ethical retailers
- The consumer
- Plastic pollution remains a priority
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- Figure 6: Importance to consumers of the main ethical issues, June 2020
- People prefer to shop with retailers they can relate to
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- Figure 7: Frequency of ethical shopping behaviour patterns, June 2020
- Reviews play an important role in purchasing decisions
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- Figure 8: Expectations of retailers’ ethical responsibilities, June 2020
- Special offers are an important factor
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- Figure 9: Factors that would encourage purchases, June 2020
- There remains confusion about how to shop ethically
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- Figure 10: Consumer shopping behaviours towards ethical retailing, June 2020
- Transparency and trust are key
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- Figure 11: Consumer attitudes towards ethical retailing, June 2020
COVID-19 and Ethical Retailing
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- The Market
- COVID-19 has stymied efforts to reduce excess waste
- Diversity and gender pay gap reports have been put on hold
- The Consumer
- People are more engaged with environmental issues since COVID-19
- Worries about finances could impact spend on ethical items
- Shoppers are making more considered purchases
- Online shopping increases waste from packaging
- Protection of staff welfare has become more of a priority
- Charitable work and giving back have grown in importance
- Convenience became more important under lockdown
- Shopping ethically has become more difficult for many
Issues and Insights
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- COVID-19 has led to a problem with excess packaging
- Hygiene concerns leading to a move away from reusables
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- Figure 12: A selection of Loop’s reusable packaging options, 2020
- Eco packaging for online shopping
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- Figure 13: Patagonia reducing the amount of plastic used in product packaging, 2015
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- Figure 14: Zalando trials RePack reusable packing for consumers in September 2019
- Technology can be utilised to make it easier for people to shop ethically
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- Figure 15: Cult Beauty pioneers transparency in beauty with the Provenance blockchain platform, 2020
The Market – Key Takeaways
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- COVID-19 has stymied efforts to reduce excess waste
- Strikes have helped to increase awareness around carbon emissions
- Increase in the number of people going meat-free
- Spotlight on diversity
Market Drivers
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- Worries about excess waste are prevalent…
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- Figure 16: Most important environmental issues, April 2018
- …although COVID-19 has led to increased concerns about hygiene
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- Figure 17: Behaviours towards product packaging, 18-24 June 2020
- Protests and strikes raise awareness about pollution
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- Figure 18: Gen Z environmental behaviours, June 2019
- More people are switching to meat-free diets
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- Figure 19: Consumers’ meat eating habits, 2017-19
- BLM marches bring diversity to the fore
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- Figure 20: Managers, directors and senior officials in employment in the UK, by ethnic group, 2014 and 2019
- Government reduces CO2 emissions
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- Figure 21: UK total greenhouse gas emissions headline results, 1990-2018
- Gender pay gap persists
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- Figure 22: Gender pay gap for median gross hourly earnings (excluding overtime), UK, April 1997-2019
Companies and Brands – Key Takeaways
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- Supermarkets are working to reduce packaging and waste
- Blockchain technology allows for greater transparency
- The Body Shop and Lush are seen as most ethical retailers
- Primark working to change ethical brand image
Launch Activity and Innovation
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- Retailers take notice of attitudinal shift towards low-cruelty diets
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- Figure 23: Tesco’s Plant Chef vegan range, 2019
- Consumers consider waste and packaging a hot topic
- Asda sells ready meals in recyclable packaging
- Iceland trials reduced packaging scheme
- Tesco partners with Loop delivery to cut down single-use plastics
- Waitrose extends its Unpacked concept
- Sainsbury’s invests in green programme
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- Figure 24: Waitrose Unpacked store, 2019
- Convenience stores launch refill stations
- Lush creates carbon-neutral packaging
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- Figure 25: Lush Naked store in Manchester, 2019
- Planet Organic expands its zero waste
- Shoppers demand greater transparency in supply chains
- Retailers partnering with ethically focused companies to prove credentials
- Blockchain technology leveraged to share and authenticate product histories
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- Figure 26: Cult Beauty and the Provenance platform, 2020
- Independent craft brewer makes sustainability a key part of its future
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- Figure 27: BrewDog’s sustainability drive, 2020
- Workers’ rights in the spotlight
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- Figure 28: Primark’s Wellness range in Shoreditch pop-up, 2020
- Retailers are recognising the importance of being inclusive
Brand Research
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- The Body Shop and Lush compete for most ethical retailer
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- Figure 29: Top ranking of retail brands*, by agreement with “ethical”, Dec 2019-Apr 2020
- Primark’s working to change ethical brand image
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- Figure 30: Inside Primark’s wellness pop-up in Boxpark Shoreditch, 2020
- Figure 31: Top ranking of retail brands*, by agreement with “unethical”, Oct 2018-Feb 2020
- Brand research methodology
The Consumer – Key Takeaways
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- People are more engaged with environmental issues since COVID-19
- Younger generations are anxious about climate change
- Fake product reviews are a top concern
- Protection of staff welfare has become more of a priority
Impact of COVID-19 on Consumer Behaviour
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- Worries about finances could impact spend on ethical items…
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- Figure 32: Impact COVID-19 will have in the UK, 18-24 June 2020
- …with women more likely to think about financial security
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- Figure 33: Change in lifestyles as a result of COVID-19, by gender, 18-24 June 2020
- Shoppers are now making more considered purchases
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- Figure 34: People who will be cutting back on non-essential spending since COVID-19, by age and gender, 30 July-7 August 2020
- Some are now more engaged in environmental issues…
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- Figure 35: Changing priorities since COVID-19, 7-14 May 2020
- ...but online shopping increases waste from packaging
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- Figure 36: People who are shopping more online since COVID-19, 16 April-7 August 2020
Importance of Ethical Issues
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- Plastic pollution remains a priority…
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- Figure 37: Importance to consumers of the main ethical issues, June 2020
- ...but younger generations are more concerned about climate change
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- Figure 38: Consumers who chose either plastic pollution or climate change as the ethical issue most important to them, by generation, June 2020
- Women are more concerned about treatment of animals and people
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- Figure 39: Consumers who chose animal welfare, treatment of workers or air pollution as their main ethical concern, by gender, June 2020
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- Figure 40: Bulldog’s Bamboo Razor advert on the London Underground, 2018
Ethical Shopping Patterns
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- People prefer to shop with retailers they can relate to
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- Figure 41: Frequency of ethical shopping behaviour patterns, June 2020
- Younger shoppers more locally minded
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- Figure 42: People who either always or often try to support smaller retailers, by age, June 2020
Deal Breakers
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- Reviews play an important role in purchasing decisions
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- Figure 43: Expectations of retailers’ ethical responsibilities, June 2020
- Women are more likely than men to boycott a retailer
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- Figure 44: Expectations of retailers’ ethical responsibilities – women, by age, June 2020
Interest in Claims
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- Special offers are an important factor for all
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- Figure 45: Factors that would encourage purchases, June 2020
- Older shoppers are more inclined to opt for items made in the UK
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- Figure 46: People who stated that the following factors would encourage purchases, by age, June 2020
Ethical Concerns during COVID-19
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- Public think that retailers should be protecting staff welfare
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- Figure 47: Ethical concerns retailers should be taking into account during COVID-19, June 2020
- Charitable work and giving back have grown in importance
Ethical Shopping Behaviours
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- There remains confusion about how to shop ethically
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- Figure 48: Consumer shopping behaviours towards ethical retailing, June 2020
- COVID-19 has put ethical shopping on pause
Attitudes towards Ethical Retailing
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- Transparency and trust are key for customers
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- Figure 49: Consumer attitudes towards ethical retailing, June 2020
- Many are wary of large online players
- Ethical retailing is often viewed as premium
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- Figure 50: Ethical retailing – CHAID – Tree output, June 2020
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- Figure 51: Ethical retailing – CHAID – Table output, June 2020
- Methodology
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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