The shocking 😯 truth about product destruction

👋 Hey!

Ready for another week of sustainable insights? This week's edition is packed with eye-opening revelations and inspiring stories!

We're diving into:

🗑️ The shocking truth about product destruction
⛺️ Decathlon: Tackling music festival waste
🎙️ Interview with Claire Stepanek from Ergo
🌍 Exciting upcoming sustainability events in the US and Europe
💼 Job opportunities in the sustainability sector

Product destruction is the intentional disposal of unsold or returned goods. This practice is widespread across industries, and the scale is staggering.

But why do companies prefer to destroy products rather than donate them or offer them to other customers?

Two main reasons include:

⭐️ Maintaining Brand Exclusivity: Luxury brands may destroy unsold items to prevent them from being sold at discounted prices, which could tarnish their image of exclusivity and desirability.

📦️ Avoiding Inventory Costs: Storing excess inventory can be expensive for businesses. Destroying unsold goods might be seen as a cheaper alternative to warehousing or donating them.

Here is some data about this problem:

Social media has played a significant role in raising awareness about these practices. For example, an influencer exposed the reality behind Coach's product destruction practices, leading to public outcry and the brand's subsequent promise to change its ways.

Summer = festival season = waste problem

In the UK, around 250,000 tents are abandoned at music festivals each summer, with most ending up in landfills. To tackle this issue, Decathlon has launched its No Tent Left Behind campaign.

🎵 Festival-goers can purchase a tent and return it by 13 September 2024 for a full refund via a digital gift card.

⛺️ Returned tents will be refurbished and resold through Decathlon's Second Life program, helping reduce waste and promote sustainability.

What a super cool initiative! Congrats Decahtlon! 🤘 

As we've seen, product destruction is a significant issue that needs addressing. Ergo, a startup based in the US has come up with a creative way to tackle it. We talked to Claire Stepanek, the founder, to learn more about their approach.

What inspired you to start Ergo, and how has that vision evolved over time? 

C: I was working at Apple managing the supply chain for all Display Components, and as part of that, I was leading many negotiations. Through that experience, I learned so much about how to optimize pricing and create win-win situations. When I founded Ergo, I wanted to take all those learnings and apply those to the world of e-commerce and give everyone the ability to negotiate. That vision has actually stayed pretty consistent, but I now see how much more Ergo can do. We optimize pricing and can determine brands' pricing strategies, but the brands using Ergo are also seeing that it can be a powerful marketing and sales growth tool with brands that work with us seeing a 22% improvement in revenue.

In what ways do you believe Ergo contributes to sustainability?

C: When brands use Ergo, we're seeing that they sell out of excess inventory. This means that they can avoid unsustainable practices to get rid of their excess inventory, such as putting it in landfill or burning it. It’s astonishing, but approximately 30% of clothing items never find a buyer, and a staggering $600M worth of unsold luxury merchandise is burned every year. The more brands use Ergo, the more we hope to make a difference and help those numbers go down!

Can you share any milestones or achievements Ergo has reached recently?

C: Our product has now been out for awhile, but we recently have introduced some new features that we are really excited about. Brands can now customize Ergo to what makes the most sense for their online stores and their customers.

How do you envision the future of retail evolving?

C: I think we're seeing a huge rise in personalization. And in so many different ways. There's personalization of a customer's online shopping experience. And then you also see people wanting to have unique personal styles and the popularity of vintage clothing. 

What advice would you give to aspiring entrepreneurs looking to start a sustainable brand like Ergo?

C: Go for it! The hardest part of my entrepreneurship journey was taking the first step. I definitely delayed and was scared of the unknown. But it was the best decision I could have made.

Bloomberg Green Festival: this event brings together leading collaborators, activists, and innovators across various sectors to drive meaningful climate action through solutions-driven experiences with world-renowned experts. July 10-13, 2024 - Seattle, USA

E-waste world: Europe’s Leading Event For Electronics Recycling. The entire electronic waste recycling supply chain come together to discover the latest innovations and solutions to create a circular economy and help create sustainable supply chains for the future. June 26-27, 2024 - Frankfurt, Germany

Cities climate action Summit: A flagship event during London Climate Action Week dedicated to discussing how cities around the globe can drive change. June 26-27, 2024 - London, UK

Are you passionate about sustainability and looking for your dream job? Here are a couple of exciting options:

• Specialist, Global Sustainability at Tiffany & Co

• Energy Manager, Clean and Renewable Energy at Meta

• Senior Consultant, Climate Change at EY

• Analyst, Sustainable Product & Packaging at Mattel

Feel free to reply to this email if you'd like to showcase your events or if you'd like to be featured in the Loop Commerce community!

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Until next Tuesday!! 🕺🏽💚

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