However, groundbreaking experiments conducted in Tembisa by retailing services powerhouses Smollan & Daymon, along with brands like Tiger, Huletts, Nestle, and retailer Spar, have revealed a different perspective. The research suggests that offering zero plastic and packaging options could actually enhance affordability for the mass market, rather than being limited to eco-friendly elites and specialty stores.

The trials began with Spaza shop experiments, focusing on rice and oats. Notably, the strategy of selling small quantities intended for same-day consumption — such as one cup of rice or one bowl of oats — led to a significant increase in product volumes. Unpackaged rice and oats, dispensed from specialised dispensers, surpassed the sales of popular packaged brands like Tastic and Jungle Oats. Encouraged by these results, a four-product trial was launched in Spar Tembisa.

Consumers quickly embraced the concept, and sales volumes experienced an impressive fivefold growth over six months, resulting in over 2-tonnes of sales across more than 5,500 transactions. Surprisingly, even for well-established products like rice, unpackaged purchase volumes were three times higher than packaged items under 1kg, despite the pricing not always being cheaper than packaged alternatives. Most importantly, the introduction of unpackaged options did not negatively impact the sales volumes of packaged goods; instead, they attracted additional customers, expanding the overall market reach.

A snap customer survey indicated that out of a random sample of 25 customers, 60% were first-time users who had initially been hesitant about the new approach, while 40% were repeat customers. The primary reason cited for repeat purchases was overwhelmingly affordability.

Courtesy of Bizcommunity – read full article here.