D5 Sustainable Retail in Norway
Solving the profitability equation in creating a healthier world
A year ago Deloitte embarked on an exciting journey of innovation when we solidified a valuable partnership by acquiring the proposition design consultancy Market Gravity.
Market Gravity has partnered with some of the most ambitious companies across the world to construct, design and launch propositions that make their customers’ lives better. It brings a structured, mission-based approach and a flexible innovation toolkit that are adaptable to a diverse range of challenges.
Reimagine the future
Together we have developed D5 to uncover large, systemic industry problems and design valuable ideas to address them. It’s an exciting opportunity to imagine how companies can address future challenges and opportunities profitably. We look forward, explore broadly and start making things real by co-creating with users and industry leaders. This gives us an important foundation to reimagine the future.
Retailers strive to deliver on consumers’ stated desire for sustainable products and services. However, there is an inherent contradiction between consumers’ intentions and their behaviours: 70% of Norwegian consumers say that sustainability impacts their buying decisions, however only 34% of them would be willing to pay a 10% price increase for a more sustainable alternative.
In a high-volume, low-margin game, retailers are struggling to deliver on their sustainable ambitions profitably since consumers just aren’t buying. We decided to use our open innovation effort – D5 – to attempt to close the gap between consumers’ intentions and purchasing behavior. Our challenge? Solving the profitability equation in creating a more sustainable world.
A D5, simply put, is 5 weeks for Deloitte to identify 5 of the biggest, unsolved problems within an industry and come up with 5 concepts to solve them.
During a D5, we explore interesting questions, emerging industries or new markets and uncover key insights that allow us to design solutions that will help business thrive in these contexts. The five largest consumer challenges are addressed with five most relevant technologies resulting in the prototypes of five market worthy ideas.
We started out our project by going to the source - consumers - to uncover what problems we need to solve in order to change their buying behavior around sustainable products and services.
We co-created with over 200 consumers and 9 industry players across Norway and together we identified five unsolved, consumer problems:
- Certainty & clarity – How can we make sustainability more tangible?
- Convenience - How to make shopping sustainably less of a chore?
- Personal relevance - How to connect sustainability with other consumer priorities?
- Positive reinforcement - How to change behaviour through positive reinforcement?
- Trust - How to build trust in a space where everyone has an agenda?
During the course of five weeks, we went through insights, ideation, testing, iteration, testing again and again (and again) in order to reimagine the shopping experience to make it easier for consumers to connect sustainability to their personal lives. We came up with 5 concepts, made real by 5 clickable prototypes:
- Pocket pantry: The easy way for you to save time & money and reduce waste by making the most of what you have in the kitchen.
- Sustainable me: A solution to empower you to make sustainable choices in your everyday life and see the real difference you make.
- Flip my basket: The easy way to make sustainable choices when you’re grocery shopping
- Planeat: The convenient way to plan and shop for meals that are good for you and the planet
- Trusteat: The trusted and transparent way to know how sustainable your products really are
Consumers and industry players were invited to the Deloitte office and The Box, where the team were working, at various stages along the way – they contributed their insights, point of views and built on (and killed some of) our ideas. We also kept a live update of our progress and findings through our microsite and blog.
After five weeks of intense work - the D5 team went on a road trip, meeting up with producers and retailers, many whom had visited the Box during the project period. Deloitte is now looking forward to seeing a more sustainable retail scene potentially with some of these concepts realized in the near future.
If this project seems interesting, you can read more about our process, findings and prototypes on www.d5norway.com.