Takeaways: 4 success factors for reuse and refill packaging
To scale reuse and refill product is key to reducing use of virgin plastic. TRANSFORM initiative, a joint initiative between Unilever, the UK’s Foreign, Commonwealth & Development Office (FCDO) and EY, is set up to supports a range of enterprises testing and scaling different packaging models.
It provides market-based solutions to small and medium-sized enterprises (SMEs) and entrepreneurs, as well as funds for SMEs, to tackle packaging challenges regarding key environmental problems.
Through TRANSFORM initiative, a few reuse/refill business models are built in Africa and Asia, from four enterprises – Alner, Bopinc, Novek and Refillable. A few considerations are required when building reuse/refill packaging model.
A store with refill detergent at Kenya, Africa.
Consideration 1: Choice of product
Brand owners must develop partnerships with retailers and, at the same time, work together to change consumer shopping patterns.
It is important to prioritize items that are more suitable for reuse/refill packaging, and that can be launched and scaled quickly, and to support consumers through behavior change.
For example, for home care products, consumers prefer functional packaging and are less concerned about its design. On the other hand, packaging for personal care products needs to be more appealing.
Home care products, such as detergent, are more likely to be accepted for refill packaging by consumers.
Labels can also be used to add brand and product information to these packs.
Consideration 2: Type of solution required
Understanding the technology, consumer and regulatory requirements in a market will determine if a high- or low-tech solution is right.
High-tech machines are better to ensure product quality, but they come at a cost. This is a challenge when operating with low margins and in low-income markets.
“Aside from the obvious environmental advantages, the biggest benefit of refill models in low-income markets is providing consumers with cost savings, as they are paying just for the product and not the packaging,” explained Zahid Mitha, CEO of Novek, Africa.
Low-tech solutions are much easier to set up and scale across multiple locations, meaning they probably have more potential for creating impact at scale. They also have lower operating costs which is beneficial in low-income markets.
Consideration 3: Product quality
Refill models can be perceived as allowing for product tampering, which is a concern for both brands and consumers. Therefore, brand owners must plan strategies to build trust from retailers and consumers.
A low-tech solution to this problem is sampling to ensure product quality is correct and consistent, while a more sophisticated solution is to provide product traceability through the refill machine reporting each dose back to the manufacturer.
Consideration 4: Expand the knowledge and engagement
Shopkeepers can be reluctant to adopt new technology. However, once they were convinced, they can facilitate the model’s success by selling the idea to their customers. This can be achieved through education and training for store owners on environmental and cost benefits of refill packaging.
Last but not least, engaging local community champions, such as store owners, local communities and NGO leaders, can encourage the promotion of refill packaging. It is also important to build trust with people, for instance through educational workshops that explain the concept of refill, and the benefits to them and the environment.
