home : hartbeat : seventh-generation-comes-to-walmart

10.20.2010

“HartBeat” is The Hartman Group's FREE online newsletter, providing insight, analysis, information and strategy to give business leaders the knowledge and vision to build sustainable brands.

Archives »
Click here for an archive of past HartBeat articles

digg
del.icio.us

reddit
twitter

friendfeed

StumbleUpon

Seventh Generation Comes To Walmart

If you believe green marketing gurus and the diverse media covering it, the current era of sustainability we now live in is a multi-headed, beneficent unicorn of an era. We say “multi-headed,” because as a central source providing insights on where consumers stand in the era of sustainability, we know that sustainability has diverse constellations comprising its universe, ranging from consumer perspectives (which are complex), corporate perspectives (again, complex), and finally the influential NGO and related social perspectives (both of which are a labyrinth of green constructs). We say “beneficent,” because despite some naysayers as to the merits of activities like Corporate Social Responsibility (see the Wall Street Journal digression on this topic), in general, sustainability is a massive, global, forward-looking construct characterized by consumers seeing themselves by varying degrees as participants in a green era who hope to enact positive change for themselves, their communities and the globe through responsible living and consumption. We say “beneficent” also because as they hope it's communicated by their various CSR efforts, a growing number of corporations work to be seen as "good companies" socially, environmentally and, with increasing frequency, by consumers who buy their products and services.

Entering into this heady mix of sustainability dimensions, typically seen as comprising environmental, social and economic spheres, and less commonly personal spheres is a recent event connecting a relatively small green household products company, Seventh Generation, and the world's largest company and retailer (Walmart) which may or may not have caught your eye.

For some, Seventh Generation's entry into Walmart, after several years of gradual debunking-of-Walmart's-intentions-toward-green by the company's co-founder and Executive Chairperson Jeffrey Hollender, is a watershed event, though of the sort that might short-circuit not just a few well-meaning, green-oriented minds: From various circles that have condemned Walmart for its effects on community economics, worker's rights and a host of other perceived impacts, the several-year evolution in thinking from aversion to acknowledgment described by Mr. Hollender in his blog, has been a bit like watching a company formerly portrayed as Darth Vader having a well-meaning Jedi Knight over for tea on a regular basis--and then signing up the well-meaning Knight to work among the ranks of imperial storm troopers. This might be the case viewed with the purest green lens, except for the fact that Hollender has acknowledged, as many in business and NGO circles alike have started to (often grudgingly) admit: Walmart is dead serious about sustainability. When we say “dead serious,” we mean the company has built sustainability into its mission to the point that in just five years, following former CEO Lee Scott's launch of Walmart's sustainability programs in 2005, the company now competes globally along CSR and sustainability lines among the likes of Tesco, Marks & Spencer, Delhaize and Carrefour (all of whom have complex, long established CSR programs in place).

Another way to look at Seventh Generation's entrance into Walmart is that it's merely a somewhat delayed, almost pragmatic sign of the times, where eco-anything is approaching mainstream status: Clorox Green Works household cleaning products caused a bit of a stir with its own birth and emergence into the mainstream in 2007, signaling that like the early days of the organic food and beverage market, the eco-friendly household cleaners market, like many other eco-driven market segments (personal care and beauty products, apparel, energy efficient devices, etc.) was, and is, expanding. Our Sustainability 2009 study, which is currently being updated, shows that the potential consumer demand for household cleaners is considerable: Of the 88% of the population found to be "inside" the World of Sustainability (e.g., participating in a range of sustainable attitudes and behaviors), 81% said they had bought conventional household cleaners in the past 30 days, and 25% said they'd bought sustainable versions.

Figure 1. Purchases of Conventional and Alternative Household Cleaners

Our cultural observations as to why consumers buy sustainable household cleaners show that such purchases are often the result of individuals traveling down personal benefit or environmentally driven pathways. Specifically, there is a strong health and wellness motivation for household cleaners as individuals consider the effects of products they use in, on and around the body. As such, individuals often view household cleaners as a way to proactively address personal safety or reactively combat allergic reactions and sensitivities, and therefore begin their adoption along personal benefit pathways, often after or along with sustainable foods, beverages and personal care products. Eventually, this health and wellness behavior may blossom into greater overall involvement with sustainability as individuals become more aware of the environmental implications of such products.

Figure 2. Adoption Pathways and In the Body, On the Body, Around the Body

Adoption of Sustainable Products: Green household cleaners are often early-phase sustainable purchases made somewhat experimentally by consumers in the Periphery and Mid-level of sustainability. In their earliest entry into sustainable purchases, most consumers begin purchasing sustainable products that offer direct personal benefits, typically related to health and wellness (e.g., food and beverage) or those that provide tangible and perceived economic or environmental benefits (e.g., CFL’s or energy efficient appliances). Moving toward the Core of sustainability, consumers show awareness and concern for themselves, their family, their community and finally, the world. Source: Sustainability: The Rise of Consumer Responsibility, Winter 2009

Whether watershed event or just another sign post of green gone mainstream, Seventh Generation, interestingly, is being seen not just as another shelf trophy among sustainable products placed as part of corporate mission, but instead is being looked to as a change agent playing an active role in how Walmart addresses the topics of chemicals in common household products. Quoting from the Walmart press release:

"Seventh Generation, a recognized leader in sustainability, will extend its influence in the industry by partnering with Walmart on several key initiatives, including participation in Walmart’s Chemical Intensive Products Sustainable Network, which has developed an ingredient screening program for household and personal care products sold at Walmart. The partnership also allows Seventh Generation to extend its leadership in transparency and consumer education on the environmental footprints of its products, where Seventh Generation will engage with Walmart and other retailers and companies working to develop the science to support a sustainability index through The Sustainability Consortium." Walmart press release, July 22, 2010

Of perhaps even more interest, and establishing a few "firsts" in terms of ethical manufacturer partnering with global retail CSR, is the notion that, again quoting from the Walmart press release:

"Seventh Generation and Walmart will collectively encourage families to live better through concrete expressions of education to nearly three and a half million consumers through initiatives such as Walmart’s mom bloggers, Facebook and the 7GenBlog. This is designed to give customers the tools and information they need to lead a healthier and more environmentally friendly lifestyle."

The outcomes of Walmart and Seventh Generation in partnership remain to be seen; for example, we only see a few Walmart Moms blogging about green household cleaners, and yet even such a basic social media orchestration has interesting ramifications in the sense that community, expert opinion and social dialogue are among the least explored dimensions of "sustainability." On an economic scale, and given the breadth of shoppers frequenting the retailer, it seems safe to say that the green household cleaners category is only in its earliest days, especially when we consider the scope of fundamental consumer desires for higher quality experiences coalescing as health, wellness and environmental motivations for purchasing such products.

Finally, one has to stop and consider that while Clorox Green Works (and SC Johnson's Mrs. Meyer's cleaners) were already on its shelves, Walmart chose Seventh Generation to focus fully on the topic of chemicals in diverse consumer products, reflecting, perhaps, the depth and authenticity of Seventh Generation's collective thinking and narratives. More specifically it speaks to the fact that ultimately, as we've said consistently for years now, the most authentic brands have a consternating habit of eventually wielding great influence. When it comes to sustainable products sold through the largest discount retailer in the world, though, who can say where the story ends, since after all, its everyday shoppers are determining the outcome?

Comment »