Mike Lambert, Executive Chairman

In an industry where brands are competing for customer loyalty, sustainability has become a key differentiating factor. With stricter government regulations and shifting consumer expectations, it’s more important than ever for brands to adopt sustainable practices.

Although it can be challenging, implementing these processes is an opportunity for your brand to innovate, build consumer loyalty, and drive profitability.

In this article, I take a look at how brands can make their merchandising more sustainable and why this corporate responsibility is essential for creating a thriving business.

Why Sustainability is Critical For FMCG Brands

The FMCG is facing increasing pressure from consumers and regulatory boards to make their operations more sustainable. Increased government regulation has also ensured that a more sustainable approach remains front and centre.

Beyond facing penalties, legal action, and reputational damages, consumers also expect brands to be more socially responsible. In fact, more than 70% of consumers have indicated that they value sustainability and are even prepared to switch to different brands if it means supporting environmentally friendly practices.

This means that adopting sustainable processes not only protects your business but can ensure that your brand is a contending challenger.

How FMCG Brands Can Make Merchandising More Sustainable

Sustainability in merchandising is about creating long-term value for both your business and consumers. FMCG that adopt more sustainable practices can reduce waste, improve efficiency, and enhance brand loyalty. Here’s how:

Shift to eco-friendly packaging and displays

I’ve noticed that there’s been a shift to using more natural, eco-friendly, and raw materials for product packaging. To implement this in your business, you can adopt practices such as:

• Replacing plastic-heavy packaging and promotional displays with recyclable or reusable materials.
• Reducing excess or unnecessary packaging.
• Encourage retailers to use digital signage instead of printed promotional material.

Improve inventory efficiency

Inefficiently managed inventories are a big contributor to waste. The solution lies in adopting strategies that integrate convenience with eco-friendly practices, such as:

• Introducing returnable or reusable merchandising materials.
• Using AI-powered systems to optimise stock levels and improve demand forecasting.
• Training merchandisers on proper stock rotation techniques to minimise expired goods.

Leverage technology

Technology is shaping the future of merchandising. Some recent data show that AI merchandising tools have helped FMCG brands reduce waste by up to 30%.

Here’s how you can use these systems to drive greener purchasing behaviour:

• Use AI to analyse retail data and optimise product placement.
• Launch loyalty programs that reward customers for choosing sustainable products.
• Use digital merchandising solutions for better shelf planning and reduced waste.

Overcoming the Challenges of Sustainable Merchandising

While sustainability is a corporate responsibility, it can be challenging to implement these practices. The key is balancing profitability, consumer expectations, and authenticity.

Here are a few common challenges you may encounter:

Balance profitability and sustainability

Sustainable initiatives often require high initial investment, but the long-term benefits outweigh this. Companies that embrace sustainability, including AI-driven processes and sustainable packaging, ultimately see higher profitability.

Shift consumer behaviour

Consumers want convenience and sustainability before they are willing to make greener purchases. This means you must integrate elements like reusable packaging, locally sourced materialism and even loyalty programs to win customers and create a brand that thrives.

It’s also important to educate consumers, which can help shift their purchasing behaviour. For example, adding a QR code to your products allows customers to track its sustainability journey showing them that you are serious about your processes.

Avoid greenwashing

The most important aspect of sustainability is independent verification. To build trust, brands must be able to back up sustainability claims with data, third-party certifications, and transparent reporting to show that these processes are more than just a clever marketing tool.

How Meridian is Making Sustainability Our Corporate Responsibility

Sustainability is a core part of how we do business. As an industry leader in merchandising, we know that we have a responsibility to minimise our environmental impact wherever we can.

That’s why our merchandisers focus on optimising supply chains by making data-driven decisions to improve inventory management and reduce waste. We also prioritise working with suppliers who follow ethical labour practices and provide sustainable packing for displays, where possible.

Want to know how we can help your brand thrive in the same way? Get in touch for more information.