Wal-Mart and Target Announce New Sustainable Products Close to Earth Day
(3BL Media/Justmeans) – Sustainable products such as organic foods and specialty apparel typically lack economies of scale, which means companies are compelled to position them in the premium segment for upper-income consumers. The use of organic farming, energy-efficient technologies and fair trade sourcing usually puts a premium price on these products.
However, with large retailers such as Wal-Mart and Target embracing sustainability as a key driver of revenue growth, the perception about sustainable goods as “expensive products” is set to change. Both of these giant retailers are increasingly backing up sustainable products with their huge economies of scale and financial might to make them more affordable for the mass consumers.
Wal-Mart has announced a new line of organic foods, which will be sold under the “Wild Oats” label, at prices that will compete with conventionally grown products. This broad new line of sustainable products will include more than 100 items, and is aimed at achieving mass economies of scale in order to bring a major price shift in the organic foods industry.
Vikas Vij - Vikas is a staff writer for the Sustainable Development news and editorial section on Justmeans. He is an MBA with 20 years of managerial and entrepreneurial experience and global travel. He is the author of "The Power of Money" (Scholars, 2003), a book that presents a revolutionary monetary economic theory on poverty alleviation in the developing world. Vikas is also the official writer for an international social project for developing nations "Decisions for Life" run in collaboration between the ILO, the University of Amsterdam and the Indian Institute of Management.