Innovation

In 2021 Vkusvill launched the first fandomats (devices that accept recyclable waste such as bottles and cans for bonuses in discount cards), which collect caps and batteries, and installed them in the first 10 stores. Then they developed a system that helps to analyze different types of waste and automatically sends bonuses to customers' accounts. The innovation was quite successful, but the company needed to engage people to use the innovation and scale the solution to the entire retail chain. They used the help of external partners such as CTC media company, and as a result, there are over 450 fondomats in stores and almost 100 units outside stores. 

This project is innovative not only in terms of technology but also in terms of how many people are involved in environmental initiatives. The idea of creating fondomats was generated by Vardan, but the concept was developed with the help of his department. Vardan shared, that now the innovation works as a major eco-project of Vkusvill, which drives the whole sector of eco-friendly movement in the company: "This project helped us to create an eco-friendly budget. That is, it was not until 2023. We went to coordinate the budget for each project. Now we already have an annual and monthly budget, which we are free to manage. This is thanks to this project because it turned out that it can also bring money. But in general, the project is cool from all sides: it engages people not only in the environmental sphere but also increases the frequency of going to the store". 

The most important feature of the project is that it is a truly business initiative: It helps attract newcomers to the network- those who first started a loyalty card. Even if they did not have a loyalty card before, and therefore there was no application installed on their mobile device, they could not order products online. The company considers such people as newcomers, since enrolling in the loyalty program they tend to order more. Also when there is an increase in the frequency of off-line purchases the customers are starting to walk more, getting more physical activity. Back in 2020, the company briefly tried to analyze this. There were no smart devices, they took the upload from CCTV cameras in 20 stores and just watched what people who came to hand over caps and batteries were doing. It was a nightmare. But then the company saw that 91% would go shopping after the delivery. Right now they can monitor it through devices. Vkusvill experts see that the number of checks for those who use environmental services is one and a half times higher. At the same time, Vkusvill encourages people to make more rational purchasing decisions, reduce amount of waste and not-used products. "This is my favorite concept - eco-friendly is equally economical. Both business is good and the environment is good. Therefore, this is probably my favorite project in recent years." - Vardan said.

Inspiration

Initially, motivation to participate in the project was not the key element, although it was an additional factor. The main success metric is not new to the network, but rather the number of people engaged in environmental initiatives. To track this dynamic, a special device with QR code scanning capabilities was developed, allowing customers to earn bonuses and participate in eco-projects. This also supports digitalization and helps analyze what percentage of customers are using environmental initiatives.

The main goal of the project and the creation of the environmental department were driven by customer demand. Vkusvill has always been customer-oriented, and the requests for more sustainable packaging and battery collection emerged even before the creation of a separate environmental department in 2014. Later, as interest in environmental projects grew, a dedicated environmental focus was formed in 2017 and 2019. To scale the project further, the company sought business efficiency that would attract additional investments and enable the development of new initiatives, focused on involving customers in more sustainable environmental practices helping to stimulate responsible consumption and promoting a circular economy and environmental responsibility among its clients and encouraging the suppliers to become more eco-conscious in terms of production. 

Overall impact

The innovation introduced by Vkusvill has had a significant impact, both environmentally and commercially. The project, which involves customers in eco-friendly activities like recycling bottle caps and batteries in exchange for small bonuses, has successfully combined environmental responsibility with business benefits. By tracking customer participation through digital tools like QR codes and monitoring engagement metrics, the company has been able to attract new customers, increase store visits, and foster customer loyalty. The project also aligns with customer demands for sustainable practices, which led to the creation of the company’s ecological department and a broader focus on green initiatives. This eco-friendly model not only promotes waste reduction but also contributes to business growth by driving foot traffic and encouraging repeat purchases.

The overall impact of the innovation has shown that eco-friendly practices can be both sustainable and profitable. Vkusvill’s use of incentives, such as bonuses for recycling, has successfully increased customer engagement, with many customers returning to the store more frequently and spending more money per visit. This model has proven that even small environmental actions, like returning a bottle cap, can lead to larger shifts in consumer behavior. The project has also demonstrated the potential for eco-projects to drive business efficiency, making sustainability an integral part of the company’s growth strategy. By continuing to expand these initiatives and offering tangible rewards, Vkusvill is not only helping the environment but also creating a more loyal and engaged customer base.

Business benefit

By tying eco-friendly actions to rewards such as bonuses and loyalty points, the initiative has successfully attracted and retained customers. Research conducted within the project has shown that eco-conscious consumers tend to shop more often, with an increase in both the average number of visits and higher revenue per customer. This strategy not only helps the environment but also boosts the economy by encouraging more consumer spending and engagement.

Finally, creating an image of an eco-friendly brand. Those who are interested in ecology are subscribed, they like to read and learn about it. After launching this eco-initiative, Vkusvill eco. transformed its image. They shifted their environmental campaign’s visual identity to stand out both in-store and in communications. Previously using the traditional green color, the company now incorporates blue to create a fresh and distinctive look. Additionally, Vkusvill launched a separate environmental brand, EcoProsto, emphasizing that sustainability is "simple and easy." 

Social and environmental benefit

The project has not only encouraged widespread participation in environmental initiatives, such as recycling and the reduction of packaging waste, but it has also contributed to a broader shift in customer lifestyles. Consumers are becoming more eco-conscious, increasingly aware of their impact on the environment, and more concerned about their own health as interconnected with the health of the planet. As part of a community that values sustainability, customers are adopting more responsible behaviors, such as recycling plastic lids and batteries, in simple and accessible ways. This collective effort has a direct, positive impact on the environment by promoting sustainability and waste reduction.

Moreover, fondomats project makes it easier for consumers to adopt environmentally responsible behaviors without feeling overwhelmed. The creation of a separate environmental brand, EcoProsto, and the use of clear communication (e.g., QR codes, social media, and in-store displays) have helped demystify environmental actions, making them feel more accessible and manageable to the average consumer.

Finally, the initiative’s focus on waste reduction and recycling supports the transition to a circular economy, where products and materials are reused, reducing the need for raw material extraction and minimizing environmental impact. The project also contributes to reducing landfill waste by encouraging the recycling of batteries and packaging, thereby reducing pollution.

Interview

Vardan Vardanyan, The leader of the environmental devision of Vkusvill