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Coles’ paper bags: We read the feedback and here’s what SMEs can learn

Coles, the retail giant, has recently rolled out an innovative and eco-friendly change to its packaging—swapping plastic grape bags for paper “handbags.”

This bold move comes as part of their ongoing commitment to reducing plastic waste, which has already seen them make strides with initiatives like recyclable blueberry packaging and paper bags for mandarins. The new paper packaging, available in all Coles stores nationwide, follows a successful trial in select stores in Victoria and Tasmania and has already saved over 68 tonnes of plastic.

While many customers have applauded Coles for their eco-friendly initiative, the change has not been without its critics. Some shoppers expressed concerns about the durability of the new paper bags, with reports of them tearing easily or being impractical for carrying heavier items. Others pointed out that while the new packaging is a step in the right direction, it doesn’t address the larger issue of plastic use in other products throughout the store. This highlights the importance of a holistic sustainability strategy, as noted by Lottie Dalziel, founder of Banish, who advocates for reducing consumption overall.

For small businesses (SMEs) looking to make a similar shift toward sustainability, there are important lessons to be learned from Coles’ experience. While it’s great to introduce sustainable changes, it’s essential to consider customer feedback, balance functionality with environmental goals, and ensure that your new solutions don’t compromise the quality of the product or experience. Critically, cost and resource constraints, often significant barriers for SMEs, must be carefully considered. 

Here’s how your business can follow Coles’ lead, and avoid some of the pitfalls along the way.

Test before you launch

Coles didn’t just suddenly switch to paper bags—they first conducted trials in select stores and listened to customer feedback before making the nationwide move. This approach allowed them to fine-tune their new packaging based on real-world responses. 

For your business, this means testing out new packaging or sustainability measures on a small scale before rolling them out across your entire operation. You could start by offering eco-friendly packaging in select products or locations, gather feedback from customers, and make adjustments as needed.

Don’t compromise on durability

One of the most common criticisms of Coles’ new paper bags is their durability. Some shoppers mentioned that the bags ripped easily, making them impractical for carrying items. 

For small businesses aiming to go green, durability should be a key consideration in your sustainability efforts. Switching to paper or other environmentally friendly materials is great, but these materials need to hold up to the rigors of everyday use. To balance sustainability with durability, consider using reinforced materials, like thicker, high-quality paper or hybrid materials that combine paper with natural fibers such as hemp or jute. Experiment with designs that can provide better strength, like stronger handles or reinforced bottoms.

Address product visibility

Another issue raised by customers was the difficulty in assessing the quality of produce inside the new paper bags. Shoppers complained that they couldn’t easily check for damaged or overripe grapes, as the paper bags didn’t allow visibility. 

If your business is introducing new eco-friendly packaging, think about ways to maintain product visibility without compromising sustainability. Options could include incorporating eco-friendly, transparent windows or using perforated paper to allow air circulation and give customers a better view of the product.

Maintain consistency across the brand

While Coles is taking steps in the right direction with their paper packaging, some customers pointed out the inconsistency with other plastic products in the store, such as bread bags. It’s clear that Coles needs to continue pushing toward greater sustainability across all their offerings to ensure their efforts don’t seem half-hearted. 

For small businesses, this is a reminder that sustainability should be consistent across your product lines. If you’re switching to eco-friendly packaging for one product, aim to extend this approach to others, and keep your messaging clear and consistent across your entire brand.

Communicate your efforts clearly

Coles has been transparent with customers about their goals and the steps they’re taking to reduce plastic use, which has helped build trust and goodwill. 

Small businesses should do the same when making a sustainability shift—be open about why you’re making changes, what you’re doing to ensure your solutions are practical, and how customers can be a part of the journey. If you’re considering moving to more sustainable practices, take the time to explain these changes to your customers. Share the positive environmental impact of their choices, and let them know that you’re committed to continuously improving.

Keep listening to feedback

The success of Coles’ eco-friendly initiatives is largely due to their ability to adapt and respond to customer feedback. 

As your business introduces sustainable practices, make sure you’re staying connected to your customers and listening to their concerns. Whether it’s about packaging, pricing, or the overall sustainability of your product, feedback is a valuable tool for continuous improvement.

Navigating cost and resource constraints

A key challenge for SMEs is managing the cost of sustainable practices. While Coles’ mandarin bag example demonstrates that price increases aren’t always directly tied to packaging, SMEs need a clear understanding of the financial implications.  

  • Cost-Benefit Analysis: Conduct a thorough analysis to determine the return on investment for sustainable packaging. Will increased sales due to positive brand perception offset the potential increase in material costs? 
  • Affordable Alternatives: Explore cost-effective options like recycled paper, bulk discounts with sustainable suppliers, or phased implementation across product lines. 
  • Pricing Strategies: Communicate the value proposition of sustainable packaging to customers without prohibitive price increases. Consider offering incentives for reusable packaging. 
  • Funding and Support: Research available government grants or programs that support SMEs in transitioning to sustainable practices.
  • Sustainable Suppliers: Identify and partner with suppliers offering sustainable packaging options. Look for certifications like FSC (Forest Stewardship Council) for responsibly sourced paper.
  • Supply Chain Transparency: Strive for transparency across the supply chain to ensure alignment with sustainability goals.
  • Measuring and Tracking Progress: Demonstrating the impact of sustainability initiatives is vital. 
  • Key Metrics: Track metrics such as waste reduction, customer feedback, and cost savings. 
  • Marketing Sustainability: Communicate sustainability efforts effectively to customers, highlighting the positive impact of their choices. 
  • Brand Differentiation: Use sustainability to stand out from competitors and attract environmentally conscious consumers.

While Coles’ experience is valuable, seek out and learn from other successful SME sustainability stories. These examples offer relatable and achievable strategies tailored to smaller businesses. Coles’ transition to paper grape bags is a noteworthy step in reducing plastic waste and promoting sustainability. However, as we’ve seen, any change—no matter how well-intentioned—can come with challenges. For small businesses looking to make a similar shift, learning from Coles’ experience is a good start. 

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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