The class discussion of how the emerging trend of
environmentally conscious products has influenced product design and SCM like in the
Herman Miller case, has reminded me of the UK based cosmetic retailer, Lush. It is interesting how Lush, founded by a husband and wife team from Poole
in Dorset in 1995 now has 650 stores
and many factories in over 40 countries and also a buying power to bring a
positive change in the world.
Lush as a cosmetic retailer chose a totally unconventional route to success. Since its establishment Lush has been inventing and
designing its own products to reduce usage of packaging, water, energy and also to reduce carbon emission and waste.100% of Lush's products are vegetarian,65% of them are preservative
free and 58% of them are free from unnecessary packaging. The products in the retail
store are displayed similar to how fruits and vegetables are displayed in a
grocery store without extra packaging.
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Lush created solid
shampoo bars, massage bars and Bath Bombs that do not need packaging. Lush says
liquid soaps and shampoos need to be bottled and that one can
prevent over 30 plastic bottles from entering the landfills by switching to
solid bars from Lush.[i] Also, solid bars need less water compared to
their liquid counterparts. From making shampoo bars in solid form, rather than
bottled, over 450,000 liters (118,800 gallons) of water is saved every year.[ii]
When packaging is unavoidable Lush uses 100%
recyclable and biodegradable bags.
Lush’s bottles and bags are made from BPA-Free, 100%
post-consumer recycled (PCR) plastic. Lush works hard with all its suppliers to
minimize environmental impact. Lush encourages its customers to return the
bottles by giving them a free treat when they return those.
Another interesting facet of Lush's supply
chain is that Lush is not just careful careful
about what goes into its products but also about where the material comes
from.While designing the products Lush goes for natural ingredients that are
produced in a sustainable way. Lush calls its way of buying from its suppliers
as creative buying. Lush has a creative buying team which visits the places
across the world from Ghana to the co-op mountain plantations in Papua,New
Guinea to trace the ingredients they get from the suppliers.Lush has
strict policies for its suppliers. It does not buy raw materials from suppliers
who indulge in animal testing or use preservatives.
Lush has been working diligently to develop a supply chain
that makes good business sense without compromising any of its beliefs. Also by
focusing strongly on 'doing the right thing' Lush is saving money and realizing
an ROI, building a great brand and winning trust of its customers.
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