What is Eco-Conception and What Are Its Challenges?

Eco-conception requires rethinking the product and its functionalities; it involves significant work on the real issues of the product, its optimization, and the search for more innovative solutions in terms of usage for a world in harmony with the resources we have. The goal of eco-conception is not to create a "zero impact" product but to create products that are coherent with the resources and the ecosystem's capacity to absorb pollution.

As the economic model shifts towards a functionality-based economy, this must be integrated into the strategy. Therefore, eco-conception requires rethinking strategy and economic models. Eco-conception cannot be done individually but globally, where everyone participates. Co-creation is a team effort that requires breaking down silos and adopting a new mindset.

This collective work involves defining the eco-conception roadmap, its challenges, and then engaging and educating teams by giving meaning to the roadmap. The challenge is to successfully co-create together nurturing creativity and being a source of inspiration. Integrating eco-conception from the very first step is always a challenge, particularly in engaging all teams, requiring enormous effort in raising awareness and training. To streamline and break down silos, it is important to engage in awareness and training initiatives so that all departments are educated on eco-conception.

The success of this transition requires breaking down silos, engaging, explaining, raising awareness, and training marketing teams and others to increase competence. Integrating environmental considerations very early in the development process is crucial.

Eco-Desirability: Creating New Imaginaries

Eco-desirability involves creating new imaginaries, challenging aesthetic codes, and questioning how marketing integrates planetary limits. Luxury brands have the ability to reinvent storytelling and create new consumption habits. For example, Louis Vuitton redesigned its sneaker boxes, creating a 2-in-1 packaging that also serves as a shopping bag.

The perception of luxury and the quality of recycled materials varies by country, particularly regarding recycled papers. In Germany, everything is recycled, which is perfectly integrated into the mindset of German customers. In France, recycled paper is ultra-white, adding a chemical process. There is a challenge to make "off-white" desirable, which is a key issue in making recycled materials appealing.

How to be Eco-Desirable: Innovation and Creativity

Some brands like Boucheron have completely reinvented their jewelry cases with the goal of reducing the environmental footprint of the new object to its minimum. In this eco-conception approach, all stages of the lifecycle have been optimized to reduce the environmental footprint, from the choice of raw materials to their end of life.

The old case, composed of 11 materials, has been transformed into a case made of two natural, traceable, and recyclable materials: aluminum and wool felt, certified by the Responsible Wool Standard. The case has thus been completely rethought and reinvented under the guidance of Hélène Poulit-Duquesne, Boucheron CEO, "No pack is the New pack."

This ultra-innovative and bold case anticipates regulations, as if cases are classified as packaging, then by 2030, all cases must be recyclable to be marketed in the European Union. Boucheron has anticipated this by designing the case of the future.

The traditional gesture of opening a jewelry case with its flap system is deeply ingrained in the collective imagination of marriage proposals. The sales ceremony has therefore been reinvented to engage customers in this new eco-conception narrative.

In the beauty sector, Fôme embodies eco-desirability with brilliance. This young startup has completely rethought the handwashing ritual by developing a powdered soap to be diluted with water, presented in a superb glass bottle case and eco-designed refills made from 100% recycled apple paper, with a very refined and elegant design.

Coopetition: The New Era

This Luxe Pack 2024 Edition clearly confirmed that we have entered a new era; the transition from traditional competition to a dynamic of "coopetition" to catalyze the transition to a circular economy. Scaling circular models invites companies to form coalitions, whether to standardize practices, share costs, or play a true role of influence in the market. Various speakers addressed the inherent challenges of forming these coalitions with great transparency and lucidity, and explored solutions to maximize collective efficiency in pursuing a more sustainable and circular economy.

A perfect example of coopetition is the Circul’R Coalition. Since December 2023, 11 major companies in the cosmetics industry (L’Oréal, Chanel Parfums Beauté, Pierre Fabre, Laboratoires SVR, Yves Rocher, Clarins, Melvita, La Rosée, Aromazone, Nocibé, and Séphora) have united within this coalition to explore the opportunities and challenges related to implementing a deposit system for cosmetic products.

Launched with the support of We Don't Need Roads and Citeo's reuse fund, this coalition aims to launch a pilot deposit project on skincare products in stores by the end of 2024. This initiative demonstrates the industry's collective will to reduce single-use packaging, aligning with the ambitions of the AGEC law.

This initiative highlighted one of the major challenges of both reuse and product refills: how to reconcile consumers' desire for new products with reuse and refill capsules.

Reuse, Bulk, and Deposits: Changing Consumer Habits

Eco-design also means encouraging new consumption habits. The challenge lies in getting consumers to adopt these new habits, especially in industries like cosmetics where product changes are frequent.

A glass bottle is optimal in terms of its footprint only if it is used at least fifteen times. The same goes for refills; a refillable package significantly reduces its environmental impact only if it is used multiple times. This implies repeated purchases by consumers rather than constantly changing beauty products. It also requires an honest awareness within the beauty sector that the incessant multiplication of new product offerings contradicts an eco-responsible approach. The most eco-responsible product is the one that is not created, so the race towards always more references in perfumes, skincare, and makeup responds to an economic model that perhaps needs to be rethought.

These elements demonstrate the complexity of transitioning towards more sustainable luxury.

It’s interesting to note that there is no significant market gain if brands move towards new models such as eco-refills, bulk packaging, and deposits. In fact, even if most customers say they are prepared to pay more for a greener product, this is still a declarative statement, but false when it comes to buying. On the other hand, brands have a lot to lose if nothing is done about the environment and a more virtuous business model. According to a Kantar’s study, 45% of UK consumers are prepared to stop buying from brands if the brand does not prove that it is committed to sustainable and virtuous development.

Challenge and Opportunities for Retailers: Sephora’s Case

Big players like Sephora can significantly influence the shift towards more responsible and sustainable luxury. According to Katarzyna Wisnewska, CSR Director, Sephora holds three major environmental "superpowers":

1. Selecting the Assortment: By choosing what products to stock, Sephora influences brands and how they think and create their products.

2. Influencing Consumers: By offering a curated selection, Sephora can guide consumers towards more sustainable choices.

3. Sephora's Own Operations and Private Label : Sephora Collection can set an example through its own eco-friendly practices.

To successfully reduce its impact, eco-design requires a broad perspective. This means orchestrating various options like recycling, refills, and deposit systems. It involves training teams and providing clear communication to customers about the diversity of options available. For instance, in the perfume sector, some refills perform well due to the right mix of format, price, packaging, and shelf placement, while others do not succeed because the overall marketing mix is lacking.

For a retailer, reuse presents a significant challenge in eco-design. Questions about how to integrate bulk sales, deposit systems, and refills into the store layout need addressing. Additionally, deciding how prominently to feature these commitments in communications is crucial. For example, during Valentine's Day, highlighting refillable products and linking them to loyalty incentives can drive success. Offering price incentives on refills and rewarding customers with extra loyalty points encourages adoption.

Brands and retailers must work together to raise awareness about refills. At Saint Laurent, refills are a core part of the communication strategy from the product launch. Brands must consider which products to offer as refills, in bulk, or through deposit systems, ensuring a cohesive and effective approach.

Sephora: Challenges in Refills, Bulk, and Deposit Systems

According to a study by Sephora, 95% of consumers are unaware that their perfume bottles can be refilled. This highlights the importance of training and educating both sales advisors and customers to raise awareness about the potential for refilling prestige packaging. Incorporating this into the sales ceremony is also crucial.

Sephora offers multiple refill options: eco-refills, in-store refills, and pioneering systems like Mugler’s fountains, which account for around 50% of their reuse sales. Additionally, Sephora is working on a deposit system project.

Category Management Challenges An example of the complexity in category management is seen with foundation shades. Over the past decade, the number of available shades in Sephora has increased sixfold to be more inclusive. If each shade were offered as a refill, it would double the assortment. Managing such a diverse range of refills without overstocking or creating unsold inventory is a significant challenge.

Orchestrating Offers

Effectively managing recycling, refill, and deposit options requires training teams and clear communication to customers. For instance, in the perfume sector, some refills perform well when the format, price, packaging, and shelf placement are optimal. Others struggle due to a less effective marketing mix.

The Reuse Puzzle for Retailers

For retailers, integrating reuse into store eco-design is a complex puzzle. Decisions about how to incorporate bulk sales, deposit systems, and refills into the store layout must be made. It's also essential to determine how prominently these initiatives should be featured in marketing communications.

Sephora and other brands must continuously work on raising awareness about refillable options. Effective category management, clear communication, and strategic marketing are key to integrating sustainability into luxury retail.

Regulation: A Catalyst for Innovation

As Geraldine Poivert, President and Co-founder (Re)Set, emphasized, “Regulation is not the end goal but a starting point”. It pushes companies to innovate and align their economic models with ecological goals. That’s why she insisted on the fact that companies need to self-regulate effectively; Compliance addresses the gap when companies do not self-structure effectively.

The AGEC Law mandates that 5% of packaging be reusable by 2023, increasing to 10% by 2027. This legislative push is essential for achieving a circular economy. However, it also requires significant effort to harmonize practices and ensure consumer behavior aligns with these goals.

Regulations like the PPWR set recyclability requirements and drive progress by creating new standards. Compliance ensures that companies continuously reassess their economic models to limit their impact.

Regulations drive progress by creating new standards and encouraging companies to go beyond mere compliance.

A Holistic Approach to Eco-Design

In summary, Luxe Pack Paris 2024 showcased the luxury industry's commitment to sustainability and its desire to collaborate as no one can do it alone.

Taking into consideration that 80% of environmental impacts are determined during the design phase, eco-design is not an option.

For eco-design to be effective, it must be part of a broader strategy that includes questioning our consumption needs. Brands need to integrate eco-design into their overall strategy, remembering that it must be supported by a viable economic model.

Cooperation at all levels is essential, and legislation, despite its constraints, often spurs companies to innovate and constantly reassess their economic models to limit their impact.

Reuse and refill are not enough to drive new consumers. However, the lack of a sustainable approach can result in consumer backlash, especially from younger generations.

The success of this transition requires breaking down silos, engaging, explaining, raising awareness, and training marketing and other teams to enhance their competencies.

The most remarkable thing is the very positive momentum felt at all these conferences, which have brought together participants from diverse major companies and start up such as LVMH, Pernod Ricard, Pépite Raisin, Woola, Circul’R, (Re)Set, Kering, cooperative MU, We don’t need Roads, to name but a few.

The Journey to a more sustainable Luxury is on its way.