Economy

Markets

Industries

Insights

Reports

Events

Retailers go green, bag makers red

By Lu Haoting (China Daily)
Updated: 2008-06-03 14:00

Retailers in China are now fighting a battle for the "green" high ground in a bid to turn fashion-conscious customers into eco-aware shoppers, as plastic bags face the ban.

Muji, the Japanese lifestyle store is offering simple but stylish linen and cotton bags in its newly launched outlet in western Beijing.

While Levi's, the US clothing maker is printing its insignia, the back-pocket seagull stitch, on its non-woven shopping bags - which customers get free when purchasing jeans at its stores.

Shuang'an Department Store, located near Beijing's West Third Ring Road, held a recycle bag design competition last month and received around 400 applications, indicating the interest in more eco fashion.

The "green" shopping bag campaign seems to be a win-win for all involved. Companies can adopt it as a brand-building tool. Consumers see it as an iconic statement against throwaway plastic bags, which are given away in billions every year.

"I like cloth bags, they are green and fashionable," says Lucy Liu, a 25-year-old office worker in Beijing. She said that carrying a recycled bag can send out two messages at the same time: Caring about the environment and being fashionable.

The State Council has banned the production, sale and use of ultra-thin plastic bags starting from June 1. Shops are also forbidden to provide free plastic bags. Retailers who continue to offer free plastic bags will be fined between 5,000 and 10,000 yuan.

Supermarkets now charge 0.2 to 0.5 yuan for each plastic bag and sell cloth bags priced between 3 and 10 yuan.

While the new government policy has forced some plastic bag producers to shut down their businesses, others like Shi Jingdong see the move as a chance to boost business.

"Our business grew at least 50 percent during the past two months," said Shi, sales manager of Beijing Color Printing Packaging Material Co. The company can produce 100,000 non-woven bags a month.

Businesses from outside of the retail market are also investing in eco-bag branding.

May Flower Dental, a one-and-a-half-year-old private dental clinic located on Beijing's Financial Street, last week teamed up with Ole Supermarkets and the Oriental Plaza to offer customers free non-woven bags.

The company distributed 10,000 bags in a week.

The clinic, which also has English-speaking doctors, said it has similar target consumers as Ole as more than half of the store shelves are packed with imported or organic food.

"It is impossible to expect that shoppers come to our clinic right after they get the bags. But we do hope that when they have trouble with their teeth one day, our clinic's name will jump into their head," said Song Min, from the company's marketing department.