Thesis statement
This is not about the product.
This is about the store.
This is about the store.
We need to change the shopping environment in a way that turns consumer's attention
to why and how they buy, and what are the consequences beyond their choices.
to why and how they buy, and what are the consequences beyond their choices.
Supermarket of the 2000s
According to FMCG consultant Marc Childs, the 2010s are marked by the reappearance of local stores, dominance of retailers over manufacturers, struggle to maintain volumes, and smarter, pickier shoppers.
Case study
Unpackaged Hackney
 |  |  |
"Reduce packaging waste by developing systems that enable individuals
and businesses to refill; campaign for policy change"
and businesses to refill; campaign for policy change"
"The Unpackaged market stall launched as a test in 2006. After a year of ferrying around very heavy (!) bulk items to two different markets, the Islington shop opened in November 2007. After 5 successful years, and lots of recognition for our mission, Unpackaged needed more space and a new Unpackaged shop, café & bar in Hackney opened its doors in December 2012. Unpackaged Hackney proved unsuccessful
– the addition of a café & bar was a distraction from the core business of refilling
and the site closed in January 2014, after just a year."
— beunpackaged.com
– the addition of a café & bar was a distraction from the core business of refilling
and the site closed in January 2014, after just a year."
— beunpackaged.com
Why did Unpackaged fail to become a successful business?
— One store, inconvenient location: "Plenty of people buy portion-by-portion to save money. In geographical terms 40% of them lived within a half mile of the Amwell Street site, 20% were in the north of London and Islington, 20% in Hackney and the east and the last 20% all over the rest of London."
— High prices: "products stress compliance with all the usual criteria sought by its clientel: organic, fairtrade, locally-sourced where possible. So one would expect higher prices. But this high? The prices typically go far beyond any premium one might happily pay over comparable stores, the obvious one being Waitrose. Organic pasta costs twice as much at Unpackaged as it does at Waitrose, detergents often more than twice as much and muesli noticeably more too."
— Self-service could imply poor hygiene and low quality: "Yogurt for example, they tried buckets and pumps and all sorts but the customer perceived it as unhygienic so now staff will do it for you."
sources: 1, 2
— High prices: "products stress compliance with all the usual criteria sought by its clientel: organic, fairtrade, locally-sourced where possible. So one would expect higher prices. But this high? The prices typically go far beyond any premium one might happily pay over comparable stores, the obvious one being Waitrose. Organic pasta costs twice as much at Unpackaged as it does at Waitrose, detergents often more than twice as much and muesli noticeably more too."
— Self-service could imply poor hygiene and low quality: "Yogurt for example, they tried buckets and pumps and all sorts but the customer perceived it as unhygienic so now staff will do it for you."
sources: 1, 2
Insight
The brand that recycles itself
Insight: We need a chain of local stores selling own-brand products and fully recycling
the packaging on their own.
Primary research
Questionnaire
Making a case for a chain of zero-packaging convenience stores
1. How often people go grocery shopping?
2. What kind of shop they go to?
3. How far away is it from their home?
4. Walk, bike, car?
5. Do they use their own bags?
6. What's their attitude towards recycling?
7. Would they bring their own packaging:
- if it made things cheaper?
- just for good karma?
2. What kind of shop they go to?
3. How far away is it from their home?
4. Walk, bike, car?
5. Do they use their own bags?
6. What's their attitude towards recycling?
7. Would they bring their own packaging:
- if it made things cheaper?
- just for good karma?
Maria, 25
married,
moderate income
moderate income
Sonya, 26
married, 2 kids,
middle class
middle class
Misha, 27
single, upper-middle class
- Goes to the market and local discounters, prefers to use her own bags.
- Likes the idea of weighted out groceries, mostly because it's cheaper.
- Enthusiastic about rented packaging.
- Shops near home, 2 times a week.
- Likes the idea of weighted out groceries, mostly because it's cheaper.
- Enthusiastic about rented packaging.
- Shops near home, 2 times a week.
- Goes to the nearest supermarket almost every day.
- Wouldn't bother to use rented packaging: it's too much when you have kids to take care of.
- Finds ecology important, but is not too keen on recycling, mostly because it's unavailable.
- Wouldn't bother to use rented packaging: it's too much when you have kids to take care of.
- Finds ecology important, but is not too keen on recycling, mostly because it's unavailable.
- Goes to a high-end supermarket once in 2 days. It's 15-minute walk away, so he sometimes takes a taxi there.
- The shop employee packs everything in free bags.
- Is unlikely to use own-packaging store, because of hygienic reasons. Does not rules out a possibility, if it would look trustworthy.
- The shop employee packs everything in free bags.
- Is unlikely to use own-packaging store, because of hygienic reasons. Does not rules out a possibility, if it would look trustworthy.
Ira, 35
married, teenage daughter
upper-middle class
upper-middle class
Julia, 53
single, adult daughter
middle class
middle class
Michael, 62
single, 3 adult children
middle class
middle class
- Orders groceries online weekly + makes minor purchases in a local shop.
- Uses her own backpack, only buys a bag if not enough space.
- Likes the idea of weighted out groceries.
- Enthusiastic about rented packaging.
- Uses her own backpack, only buys a bag if not enough space.
- Likes the idea of weighted out groceries.
- Enthusiastic about rented packaging.
- Goes to Auchan once in 1-2 weeks, and to a local shop 2-3 times a week.
- Uses her own bags and occasionally buys more. Tries to re-use them.
- Finds ecology important, but there's no way to recycle.
- Uses her own bags and occasionally buys more. Tries to re-use them.
- Finds ecology important, but there's no way to recycle.
- Goes to a high-end supermarket once a week and to a local discounter 2-3 times a week.
- Buys bags in store and gives them away to local recyclers.
- Prefers high-quality packaging, wouldn't trust unpackaged goods.
- Wouldn't use rental packaging for food, but does use it for soap/washing liquids
- Buys bags in store and gives them away to local recyclers.
- Prefers high-quality packaging, wouldn't trust unpackaged goods.
- Wouldn't use rental packaging for food, but does use it for soap/washing liquids
Field research
Customer flow statistics from a selection of stores
Perekrestok Arbat
Discounter supermarket on a pedestrian street
Wednesday, 13:00 - 13:15
Wednesday, 13:00 - 13:15
Bought bags: 13
Own bags: 10
No bags: 7
Total: 30 people
Own bags: 10
No bags: 7
Total: 30 people
Mostly small purchases with no more than one bag.
Surprisingly many people make micro-purchases (1-3 items) and carry them without a bag. Those are mostly 20-30-year olds.
Senior people use their own bags a lot more often.
Young people tend to use their backpacks/purses instead or with shopping bags.
Most people seem like they shop for their office rather than home.
Surprisingly many people make micro-purchases (1-3 items) and carry them without a bag. Those are mostly 20-30-year olds.
Senior people use their own bags a lot more often.
Young people tend to use their backpacks/purses instead or with shopping bags.
Most people seem like they shop for their office rather than home.
7th Continent Smolenskaya
Mid-class oriented supermarket near the 3rd ring
Wednesday, 13:30 - 14:00
Wednesday, 13:30 - 14:00
Bought bags: 12
Own bags: 20
No bags: 6
Total: 38 people
Own bags: 20
No bags: 6
Total: 38 people
Most shoppers are local senior people. Absolute majority of them use their own bags and make big purchases. Younger people often make small purchases and carry them without any bags.
Malo Mesta / Allfoods
Local grocery boutique near Patriki
Bought bags: 0
Own bags: 0
No bags:
Total: 0 people
Own bags: 0
No bags:
Total: 0 people
123123
Secondary Research
Frugal Innovation
Innovating to create solutions that are better and cheaper, from fewer resources
These solutions are recycling local resources for local use. By doing this, they're not only creating value for people and save resources, but also make traditional ways of delivery and distribution of resources look over-complicated.
