Sustainability has become a budding social cause as people worldwide see the impacts of climate change firsthand. Yet, one region that is particularly focused on sustainability is Latin America, or LATAM. In fact, a recent eMarketer report found that 94% of internet users in Latin America believe companies should be investing more in social and environmental initiatives.
Not only do sustainable initiatives make a difference in the global fight against climate change, but they are also profitable. The same report from eMarketer explained that "while sustainability may cost businesses more money up front, consumers are likely to make more frequent purchases over the long term from companies that address the issue. Research shows that regional business leaders feel sustainability is, in fact, profitable and provides them with an edge over rivals."
With customers willing to reward sustainable companies with their business and their loyalty, reducing waste and creating a more sustainable business model provides a great opportunity for retailers. Let's dive into the ways retailers can become more sustainable.
Opportunities for Sustainable Food Waste Initiatives
In today's global economy, there are numerous ways that a brand or retailer can pursue sustainable initiatives. They can partner with fulfillment companies that reduce packaging, use more sustainable materials in production or eliminate unnecessary waste by not sourcing more than they can sell before the best-bought-before date.
At GK, we specialize in providing retailers with the tools they need to avoid waste without risking their margins. GK AIR's Dynamic Pricing tool in particular helps retailers meet this goal.
Dynamic Pricing Provides a Solution for Retailers
With GK AIR's Dynamic Pricing tool, retailers can leverage powerful machine learning algorithms to instantly calculate the optimal price for any item. The tool compares numerous evolving factors, even in the most turbulent retail environments. These factors can include input costs, competition, price sensitivities and even inflationary changes.
Inflation in particular is an important factor. In the coming year, inflation will remain a top concern for LATAM retailers as financial experts predict the cost of living in Latin America could soon increase by more than 10% (higher than anywhere else in the world).
In the case of sustainability, Dynamic Pricing can be used to determine the best promotional price to assign to a CPG item that may soon expire (or even to a bathing suit that is quickly going "out of season"). This keeps the item from becoming food waste and/or entering a landfill – without wasting valuable labor time asking in-store associates to apply discount stickers.
GK Dynamic Pricing gives retailers the flexibility to optimize their strategies at any time, so they can sell through timely items efficiently and concentrate on the performance of their products and improving KPIs.
With GK, Your Business Can Support a Better Tomorrow
For more information on GK LATAM and the sustainability initiatives in the region, follow GK LATAM on LinkedIn. If you want to learn more about how GK can help retailers worldwide incorporate eco-friendly practices, contact us today!
