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The Walmart Effect

Chemical safety must now start with retailers.

10/23/2017 | Jeff Jacobs, The Brand Protector

Retail trends have long impacted the promotional product industry. After all, your client is a consumer, too. They like what they like, and that decision is often formed while shopping retail. Retail stores and retail brand names can shape the next sourcing decision on everything from wearables, to writing instruments, to covers for a smartphone. Think how often your client has referenced a retail product to compare to when it comes to color, technology, or style.

When it comes to defining color trends, of course the cutting edge is defined by Pantone. According to the Pantone Color Institute, “The desire for colorful self-expression is a key take away for Spring 2018. The color story is wildly divergent and we see a kaleidoscopic bounty of uplifting shades and feel-good tones. There is a feeling of optimism and confidence driving a new vitality into fashion trends. Gender and seasonal borders continue to be non-issues when it comes to color. Untypical spring shades that make for complex and original combinations, communicates the consumer’s desire to experiment with color all year round without any restrictions.”

That’s a bit of a mouthful, for sure. But when it comes to chemical safety at retail, the “cutting edge” language may be less flowery, but the impact on our industry can, and should be, more profound. In 2016, a federal law was passed to better protect consumers from dangerous chemicals, but with the change in administrations, that law is now at risk of being hollowed out. But then last month, along came three unlikely champions to step in and fill the void. Target, CVS, and most aggressively, Walmart, announced they were among a growing list of brands tackling chemical safety in the products they sell. These corporations are showing suppliers, with actions instead of rhetoric, that their consumers are demanding safe and healthy products. Toxic-free consumer products may be good for business after all.

While Walmart has some business practices that critics often are quick to point out, this is not one of them. In 2013, Walmart first announced its Sustainable Chemistry Policy. Household cleaners, beauty products, and personal care products sold at Walmart and Sam’s Club were the starting point. Walmart first called on suppliers to disclose all product ingredients online. Then, Walmart told suppliers to “reduce, restrict, and eliminate” certain chemicals, focusing on eight high-priority ones.

Finally, Walmart looked to increase private-brand “Safer Choice” offerings. Safer Choice is an EPA voluntary program similar to what Energy Star is for electronics and appliances. Fast forward to today, and Walmart has now added another 10 percent of expected reduction from suppliers of “chemicals of concern,” or about 55 million pounds of chemicals. Advancements made from the first policy announcement to now are not without PR value: Walmart is in the top 10 of Fortune Magazine’s 2017 list of Companies That Change The World. Not too shabby.

Target announced its own new chemical policy in January, with that initiative focusing on removing PFCs and flame retardants altogether from clothing they carry within the next five years—by 2022. The retailer has also established a removal timeline of 2020 for five classes of chemicals of concern, including formaldehyde donors and phthalates. Products involved are in the beauty, baby care, personal care, and household cleaning departments.

Last but certainly not least, CVS updated its chemical policy in April, with an eye toward removing parabens, phthalates, and formaldehyde donors by 2019 from more than 600 products. CVS has said it will focus on other product categories and chemicals of concern in the future.

These retailers and others are taking these actions voluntarily and while honorable, this kind of action is  not a substitute for a comprehensive strong federal safety law. Consumers are being bombarded with information (and scary stories), every day by way of traditional media outlets. They are becoming increasingly aware of the fact that toxic chemicals in products have a serious impact on their health. Pressure on retailers to provide a less toxic shopping experience makes carrying safe products good business. How about you? Can you turn concerns from your promotional products clients about chemical risk into a better business opportunity for you and your company? It doesn’t hurt to start the conversation about safer products. After all, they are consumers, too.

Jeff Jacobs has been an expert in building brands and brand stewardship for 40 years, working in commercial television, Hollywood film and home video, publishing, and promotional brand merchandise. He’s a staunch advocate of consumer product safety and has a deep passion and belief regarding the issues surrounding compliance and corporate social responsibility. He retired as executive director of Quality Certification Alliance, the only non-profit dedicated to helping suppliers provide safe and compliant promotional products. Before that, he was director of brand merchandise for Michelin. You can find him still advising Global 500 Brands on promo product initiatives, working as a volunteer Guardian ad Litem, traveling the world with his lovely wife, or enjoying a cigar at his favorite local cigar shop. Follow Jeff on Twitter, or reach out to him at jacobs.jeffreyp@gmail.com.

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