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On Thursday, March 10, 2016, an employee of Global Fashion Group’s (GFG) Zalora fashion e-commerce business inspects orders at a warehouse in the Cibitung area of Bekasi, West Java, Indonesia. Getty Images | Bloomberg | Bloomberg As internet shopping grows in popularity, there are growing concerns about packaging waste, but some online businesses claim they will not let sustainability suffer. Zalora, a Singapore-based online clothes retailer, claims it is working to meet its green pledge and reduce its environmental impact. “We thought that making pledges public is the best way to go because it generates a level of accountability that you can’t avoid. We’ve now ensured that at least 80% of our packaging is recyclable “CNBC spoke with Gunjan Soni, CEO of Zalora Group. “But, when it comes to the goods we’re selling, we’ve started a circular fashion campaign. People will be able to sell back the products they purchased on Zalora in the near future.” The issue of sustainability in a world where packages are flying about every second is a major one that both brand owners and platform owners must address. Bain Futures’ senior partner and chairman, James Roots Making sustainability a component of an online retailer’s business model is crucial, especially as the industry is under fire for its excessive use of plastics in packaging. According to Reuters, environmental groups such as Greenpeace have warned that garbage from China’s e-commerce sectors might treble by 2025. “In a world where packages are flying around by the second, the topic of sustainability is a key one that brand owners and platform owners have to face,” said James Root, senior partner and chairman of Bain Futures, a global think tank of consultancy company Bain & Company. “However, based on my own experience with these firms, I can assure you that this is very high on their priority list. How should they think about eliminating single-use items and promoting reusability and sustainability throughout their entire business models? “Added he. Creating a long-term strategy Republiqe, a virtual apparel company that offers “100% digital” outfits, has made it a mission to build a sustainable online business, according to its website. According to its founder, James Gaubert, the company aspires to be “the world’s first totally digital virtual fashion brand.” “As a brand, we basically consider our customers like real-life avatars,” Gaubert, who is also the creative director, said. “A customer visits our website, selects a garment or clothes, and then uploads a photo of themselves at the point of purchase.” The digital tailoring team then takes over and “tailors that shot with their outfit for them to then push out and display on social media,” as they put it. “Our gear is as environmentally friendly as it gets. In the physical world, it does not exist “Added he. “I’m asked on a daily basis if we’re going to launch a clothes line. On a personal level, though, it contradicts our values.” It is critical to have strong leadership. Countries must take the lead on issues such as climate change, according to Vinod Thomas, a visiting professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore. “It (didn’t) even factor in the agenda of the ASEAN leaders’ meetings until very recently, or even today,” Thomas added, referring to the Association of Southeast Asian Nations. “How could you possible develop and finally cope with this when it’s too late?” “How could you possibly grow and eventually deal with this when it’s too late?” He stressed the importance of having the appropriate leadership and stated that Singapore is well-positioned. In February, Singapore announced its own Green Plan, which includes a goal of encouraging more firms to follow a sustainable path. Singapore’s green goals for the next ten years are mapped out in this government project. They include a 30 percent reduction in garbage transported to landfills by 2030, as well as a target of making all newly registered cars cleaner-energy models by 2030. “People look forward to Singapore in terms of economic model,” Thomas, a former World Bank senior vice-president, said. “The stakes in Singapore are really high. Southeast Asia has a lot riding on the solution, but it’s also one of the major contributors to the problem.” He said, “Leadership must be supplied so that others would follow.”/nRead More

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