{ "docId": "019dd923-5de0-76bd-a165-770f21c01013", "docSlug": "e3bf88e2051e758a", "documentTitle": "Solving fashion’s product returns", "authorId": "misc", "authorName": "Roland Berger", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.778, "pageNumber": 39, "pageCount": 107, "prevPage": 38, "nextPage": 40, "slideType": "testimonial", "function": "summarize", "density": "overcrowded", "nDataPoints": 3, "notes": null, "elementsJson": [ "headline_text", "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a165-770f21c01013/39", "deckHref": "/decks/019dd923-5de0-76bd-a165-770f21c01013", "deckJsonHref": "/decks/019dd923-5de0-76bd-a165-770f21c01013.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a165-770f21c01013#slide-39", "components": [ { "bbox": null, "kind": "callout", "text": "Retailers therefore face the challenge of trying to make their current operations and returns policies more sustainable while not alienating consumers.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd951-f95b-7408-8fc8-6f69629490c4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.4, "w": 0.28, "x": 0.05, "y": 0.26 }, "kind": "paragraph", "text": "On the flipside, brands and retailers have also identified that one of the key challenges to overcome in the long-term is around consumer expectations of returns. Participants voiced that over the last 15 years, clothing consumerism has increased dramatically, particularly online. In addition, many consumers expect convenient and free returns. COVID-19 aggravated the issue, as most fashion businesses extended the returns period from the minimum of 14 days to 60, 90 or even 180 days to make up for the fact that consumers could not touch and try on product due to store closures. Consumers have therefore become used to the convenience of easily buying clothing online and returning them for free, and around 80% of them still expect returns periods to stay longer than the legal minimum52. Retailers therefore face the challenge of trying to make their current operations and returns policies more sustainable while not alienating consumers.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8d181269-4b1a-4aea-ade4-dd2077c35e9d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.4, "w": 0.28, "x": 0.68, "y": 0.135 }, "kind": "quote", "text": "Consumers have gotten used to convenience, to ordering online and having their items delivered home. This puts a lot of vehicles on the road. To reduce returns, it would be beneficial to get consumers back into bricks-and mortar stores. Convenient pick up points and returns points in stores are a good way forward - companies could also look at incentivising, e.g. collections and returns in stores are cheaper, free or a voucher to spend in store is offered and the incentive is likely to be paid for by the add on sales in stores.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0a3b4917-cbe1-4d3a-bd2c-e54adbc2371b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.28, "x": 0.35, "y": 0.58 }, "kind": "quote", "text": "The true root of the returns problem is that there are no financial consequences for consumers who show bracketing behaviour. We need to re-educate consumers about the value of textiles, but also on the reality of the end-of-life supply chain and of the current returns system.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "944b7a90-c803-4382-83bd-2853811dd500", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.28, "x": 0.35, "y": 0.135 }, "kind": "quote", "text": "Over the last 15 years, clothing consumption has doubled but at the same time clothing use has declined by 40%. Inevitably, this increased consumption has also corresponded with more product returns, especially post-Covid. We have introduced fashion rental to help combat the returns process and provide customers with an alternative and more sustainable way to shop.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d5babe20-9b35-42a1-ab38-b81af83c8eda", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "The true root of the returns problem is that there are no financial consequences for consumers who show bracketing behaviour. We need to re-educate consumers about the value of textiles, but also on the reality of the end-of-life supply chain and of the current returns system. - Gwen Cunningham, Lead Circle Textiles Programme, Circle Economy", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd951-f95b-7408-8fc8-70cdee59d012", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.3, "x": 0.05, "y": 0.14 }, "kind": "title", "text": "5. Consumer expectations will need to shift", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5cf5df0c-1869-48e4-af41-acda6e4a62f3", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Emotional Appeal", "slug": "emotional-appeal", "agent": "Storyteller", "layer": "slide", "matchId": "b72963a5-695b-491a-9a3c-5d9037c44abb", "evidence": "Consumers have gotten used to convenience, to ordering online and having their items delivered home.", "confidence": 0.7 }, { "name": "Storytelling Effect", "slug": "storytelling-effect", "agent": "Storyteller", "layer": "slide", "matchId": "99c64f12-51bc-4494-9ebb-85d38c3b343a", "evidence": "The true root of the returns problem is that there are no financial consequences for consumers who show bracketing behaviour.", "confidence": 0.6 } ], "frameworks": [], "arcBeats": [], "loops": [ { "to": 41, "from": 33, "name": "Golden Circle", "slug": "11-golden-circle", "bestFor": "Visionary leadership, brand positioning, mission statements", "matchId": "dd7cd7ea-34b3-45c1-b2d9-4a1fc46e81cd", "evidence": "The document presents stakeholder voices and key messages on the need for change.", "position": 1, "objective": "Emphasize the need for a unified approach and end-to-end transparency", "structure": "The Why (Belief) -> The How (Process) -> The What (Result)", "confidence": 0.6, "description": "Invert the typical pitch by starting with why you exist, rather than what you do" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }