Should we still gamble our futures with zero-waste stores?
Navigating the realities of sustainable businesses in the PH market
WORDS Adelene Britanico, Cathlyn de Raya, Maria Alliah Jalimao, Maria Minerva Melendres, & Kristine Julia Robin
INFOGRAPHICS Cathlyn de Raya
Reality check: sustainable stores aren’t really sustainable in business.
After the closure of their eco store in Sta. Maria Bulacan last May 2023, Jian Pierre Arguelles, co-owner of FullFill Zero Waste, echoes the realities of establishing such enterprise driven by their advocacy of a sustainable lifestyle.
“Imagine, yung profit is hindi sya ganon kabilis, because dahil wala masyadong supplier. You are competing and also you are competing dun sa mga kilala ng brands,” he said.
Community eco stores are emerging business models that work as zero-waste retailing mart that uses refillable containers brought by customers for bulk purchasing of basic commodities such as rice, cooking oil, shampoo, and laundry detergent that are commonly sold in sachet in a common model of sari-sari store. With this practice, no to minimal use of plastics is employed. Its existence highlights its substantial role in our economy and in the environment, especially in resolving waste management in the country.
In fact, Filipinos are becoming more and more environmentally conscious. Kantar World reported in 2021 that 75% of Filipino households seek brands that minimize their impact on the environment and 74% are willing to support and invest in brands that promote sustainable lifestyles. However, these kinds of businesses can’t keep up with the competitive and fast-evolving market.
Uncool-ture: Rooting out the cultural behavior behind poor zero waste management
In 2020, the Philippines’ average salary of P15,200 ranked 95th in the list of the lowest in 110 countries surveyed by the think-tank Picordi.com. Having P610 as the minimum daily wage, the sachet economy enters the picture.
In an interview with Emy Ruth Gianan, an assistant economics professor at the Polytechnic University of the Philipines, she emphasized the demand for affordable means of basic goods for the Filipinos to survive, thus resulting in buying in “tingi” rather than in bulk.
“Ang consumers [ay] medyo demanding, we want things to be within our means– affordable siya, kaya siya ng budget ko tapos pasok siya dun sa mga gusto kong gawin or convenient siya para sa akin.”
The high cost of eco-friendly products compared to conventional sachet-packaged goods, makes these eco-stores less accessible to the majority of low-income consumers in the Philippines. For example, the smallest available pack of the shampoo comes in six 10ml sachets (a total of 60ml) at P29.25 while the biggest size available is the 670ml bottle at P378. If you compute for the cost per ml, you will find that the 60ml content of the biggest bottle will cost P33.85, P4.60 more than the sachet. But if you purchase 670ml worth of shampoo in sachets, the cost will be P326.63 only, P51.38 cheaper than what they sell the biggest bottle for.
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With sachets being significantly cheaper upfront, they remain the preferred choice for daily necessities. In addition to this, the deep-rooted habit of purchasing in small quantities due to financial constraints means shifting consumer behavior towards bulk buying or more expensive eco-friendly alternatives is challenging. Many consumers prioritize immediate affordability over long-term sustainability benefits.
With that being said, despite the willingness of 70% of Filipinos to pay more for eco-friendly products, the reality is that many low-income families still prioritize affordability over sustainability. This is evidenced by the daily consumption of 163 million sachets, which are cheaper upfront than bulk or eco-friendly alternatives.
“If you’re located in really mga communities na maliliit, not because hindi nila gets ‘yon or parang gets nila ‘yon pero hindi kasi ‘yon yung priority nila e. Ang priority nila makakain, ang priority nila ay basta meron– makasurvive,” Professor Gianan said.
The sachet economy thrives as it meets the immediate financial needs of most Filipino households. And as eco-friendly products come with higher price tags, the future of sustainable stores may also come with higher stairs for business people to climb.
"The ECOnscious Shoppers Battle: Convenience or Conservation?"
In the realm of eco stores, a notable cultural behavior that has garnered attention is the issue of overconsumption. As sustainability becomes a focal point for many consumers, the phenomenon of overconsumption poses a significant challenge. Excessive consumption may have adverse effects. The allure of eco-friendly products and the desire to make environmentally conscious choices can sometimes lead individuals to purchase more than they actually need.
In 2022, about 59.24 thousand tons of waste were prompted by the Philippines each day, indicating a rise from 2021, being CALABARZON deemed to contribute the most volume of waste generation, followed by NCR.
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This trend not only contributes to excessive waste but also contradicts the fundamental principles of sustainability that eco-stores aim to promote. It is essential for consumers to practice mindful consumption and prioritize quality over quantity to combat the detrimental effects of overconsumption in eco stores. Hence, the implementation of green taxes to represent the actual environmental impact of a product, mandatory take-back initiatives for manufacturers to recycle packaging or products, and educational programs should be employed to enhance consumer awareness.
It is crucial for individuals to strike a balance between convenience and eco-consciousness, making informed choices that align with their values and the greater goal of environmental preservation. The crucial point is to cut down on consumption and only purchase eco-friendly items. The concept is that owning fewer things and buying less can genuinely result in greater satisfaction and happiness.
Social Enterprises Lead the way: What’s holding governments back?
While social enterprises offer promising alternative solutions, government actions continue to fall short despite access to numerous tools for combating climate change
Governments, including those in the Philippines, are often constrained by bureaucratic hurdles, limited budgets, and fragmented policy approaches that hinder their ability to tackle climate change and drive urgent sustainability challenges. Despite having tools at their disposal, including green taxes, subsidies, and regulations designed to address environmental issues, they often lack decisive and comprehensive strategies and can be diluted by inconsistent enforcement. The reliance on stimulus packages, as evidenced by the Greenness of Stimulus Index, often results in more environmental harm than good, revealing a gap between policy intentions and real-world impacts. This illustrates the inadequacy of government-led sustainability efforts and shows why alternative approaches are necessary for the future.
In response, social enterprises like Dana Asia are stepping into the breach where government initiatives falter. Their eco-store model, which integrates zero-waste principles into urban poor communities, offers a compelling alternative by providing refillable products that cut plastic consumption. Dana Asia’s approach reduces household plastic waste by 38% and lowers costs by 10% while reviving traditional practices. This success highlights the need for greater collaboration with such grassroots initiatives, demonstrating their potential to complement and enhance broader sustainability goals where government policies fall short.
ECOmmitment: How do we draw the line between money and the future?
“I have to wait for success stories to happen; if there are no clear positive results, I won’t really invest on it,” Professor Gianan stressed.
In the Philippine business landscape, balancing financial imperatives with environmental sustainability impedes the execution of corporate social responsibility (CSR) initiatives for eco-stores. Companies seek short-term profitability due to competitive pressures and perceived costs of sustainable practices, as indicated by the Asian Development Bank and Philippine Business for Environmental Stewardship. Regulatory complexities and inconsistent enforcement hamper long-term investments in environmentally friendly organizations, despite rising consumer demand for sustainable products and goods.
The overarching focus on immediate economic returns and operational efficiencies often eclipses broader commitments to environmental responsibility. The companies prioritize products with elastic supply to streamline production and meet the demands of pricing-sensitive markets, driven by profit maximization.
As a result, this cautious approach leads larger corporations to view eco-store ventures as risky due to the absence of proven success models and unclear profitability metrics. Consequently, mainstream adoption of eco-friendly practices remains confined to niche markets and social enterprises driven by strong sustainability advocacy, rather than comprehensive financial incentives or solid regulatory frameworks.
This also points out the concept of greenwashing. Companies have taken for granted the more and more environmentally conscious Filipinos as they—intentional or not—market a product or practice as environmentally beneficial when it may actually be doing the opposite. They often claim that their products are recyclable but there are inadequate recycling areas, especially in far-flung and island communities. They also failed to manifest the true spirit of recycling “as a means of reusing material while preserving its integrity to prevent more virgin material from being extracted.”
Despite those reality checks, the future of eco-stores in the Philippines holds promise. Here are some inspiring stories of successful eco-waste initiatives that exemplify the potential for growth and sustainability within the market. These stories showcase the resilience and innovation of eco-businesses, offering a glimpse into a future where environmental responsibility and economic success can coexist harmoniously.
The Strategic Imperative: Navigating Sustainability for Business Growth
The Maginhawa eco-store's choice to keep running despite not seeing significant returns on investment (ROI) truly highlights its strong dedication to environmental sustainability and community well-being. “On our part, kahit wala pa kaming ROI, nagpapatuloy pa rin kami," Dax--owner of Maginhawa Eco-Store said.
Stability in sustainability. Photos from Maria Minerva Melendres and Kristine Robin
Such businesses often place their mission and values above mere financial gains. This eco-store might be motivated by a passion for environmental conservation and a desire to create a positive influence on the community, making sustainability efforts a key focus.
In certain instances, businesses realize that the advantages of their eco-friendly initiatives extend beyond monetary profits. They may concentrate on long-term objectives like establishing a loyal customer base, contributing to a cleaner environment, and encouraging sustainable practices within the community. The 2019 Social Weather Station (SWS) survey showed that more and more Filipinos are willing to buy in more sustainable and eco-friendly containers than the usual packaging of their goods. These non-financial benefits can be just as, if not more, valuable to the eco-store in terms of fulfilling their core values and making a societal impact.
Furthermore, the eco-store's decision to persist despite financial hurdles could represent a strategic investment in constructing a robust brand reputation and positioning themselves as sustainability leaders. By remaining faithful to their eco-friendly principles, the eco-store can distinguish itself in the market, attract like-minded customers, and potentially inspire others to embrace more sustainable approaches.
Overall, the Maginhawa eco-store's resilience in the face of financial challenges underscores a genuine commitment to environmental responsibility and community influence. Their steadfast dedication to sustainability establishes a positive precedent for other businesses and underscores the significance of prioritizing values alongside financial success.
FullFill eco-store: Pioneering Sustainability Beyond the Storefront
While FullFill eco-store may have closed its physical doors, its commitment to educating and raising awareness about zero-waste living persists through robust engagement on social media platforms. Despite the transition from a traditional store setting, FullFill's dedication to promoting eco-conscious practices remains resolute.
“One of the action plan nga is ‘yung nandoon sa store, the strategy of selling is by education,” Arguelles stated.
Green and alive. During the pandemic, the initiatives of Jian Pierre Arguelles and his fiance manifested through an eco-store built within the community of Sta. Maria, Bulacan. Photos from FullFill Zero Waste
Through a strategic and dynamic online presence, FullFill eco-store continues to influence and inspire its audience to adopt sustainable lifestyles and make environmentally responsible choices. Leveraging the reach and impact of social media, FullFill extends its mission to a wider audience, disseminating valuable information and encouraging active participation in the sustainability movement.
“Nagkaroon ng conclusion na it’s better off for us to, since na grow namin ‘yung social media namin na sige we will try to comeback, hopefully soon but we will try first to educate the customers, the filipinos parang magkaroon muna ng conversation about zero-waste,” he added.
Although the storefront may no longer be operational, FullFill eco-store's digital strategy ensures a continuous dialogue with its customers and followers, reinforcing its position as a thought leader in the realm of sustainability. By maintaining an active online presence, FullFill effectively communicates its values and principles, fostering a community of environmentally conscious individuals committed to making a positive impact.
In essence, FullFill eco-store's legacy transcends physical boundaries, evolving into a thriving digital enterprise that champions sustainability and empowers individuals to embrace eco-friendly practices. Through strategic online engagement, FullFill remains a driving force in the business of sustainability, demonstrating that the impact of a business extends far beyond its storefront.
Reality check: It is now our time to act.
As the narratives navigate the sad-but-true realities of eco-store businesses and discuss the poor zero-waste management in the country, it calls for us to act immediately. Professor Gianan pointed out the success of ‘bring your own water bottle’ and the usage of ‘non-plastic straws’ or ‘biodegradable straws’ as the current generation appeals to the trend—what more if we can establish and bring the eco-stores to the communities to be adopted by the youth.
Zero waste eco-stores stores aren’t really sustainable in business. It is a high-risk business endeavor but with its market becoming more and more environmentally conscious, its success is worth gambling for especially when the greener future is at stake.