Key challenges and opportunities
There is an opportunity to change fundamental business models, e.g. from selling to leasing products, so that we use fewer resources to provide more
The ability to scale up innovations and new technologies can be a challenge for our larger operating companies when working with niche suppliers. New innovations, like closed-loop products, also take time to develop, test and experiment
We have an opportunity to expand these product ranges across mainstream markets
We continue to research and gain insight into customer behaviour and demands across different operating company markets
We have an opportunity to broaden out niche areas like closed-loop innovation across our supply chain, particularly within our 11 common Group brands
Innovation gives us an opportunity to experiment within the business where 'failure' is an acceptable part of learning. There may be an opportunity to consider options of ring-fencing creative innovation within the business
We are developing effective 'take back' schemes to upcycle waste and benefit each partner involved (e.g. customer incentives and logistical requirements)
Our business is home improvement and we want to improve people's lives by helping them create better homes. This means being at the forefront of innovation to produce sustainable products and services for customers. Innovation is a Net Positive priority and our 2020 Foundations targets within innovation cover a range of work: from our eco-product innovation, to integrating sustainability principles in our common brand range to developing alternative services such as the ability for people to share products and services within their neighbourhood – which encourage sustainable living.
Our focus on developing new technologies, business models and creative ways to reuse resources builds on our strong track record in eco-product innovation. This work also involves partnerships and collaboration with other businesses and institutions. For example, over the past year we have been exploring ways in which materials can be reused to preserve resources and increase their value. This work into 'closed-loop products' is with the Ellen MacArthur Foundation and B&Q UK.
Innovation also involves our own processes, including the way we plan and design products, from packaging to reusing our own store and product waste. Our new 11 common brands will help to us to build a consistent approach to embedding sustainability, including common sourcing.
Our relationship with our customers is core to innovation – and we are conducting work to understand changing consumer attitudes towards sustainability. Our learnings and customer insights will feed into the creation of future products and services for Kingfisher.