Piloting RePack made easy

Every parent with kids in Finland knows Reima. In Finnish weather, you really want to dress your kid in the kind of protective overalls that allows both parents and kids to enjoy the slushy winters we are increasingly seeing in these times of climate change. 

Reima’s mission is to encourage children to discover the joy of movement and provide a good quality, year-around, tip-to-toe wardrobe for these active children, ages 0 to 12. Functionality, safety, sustainability, and innovation are fundamental to Reima design. 

Since 2012 Reima has seen double-digit annual volume growth and in 2016 the company’s net sales reached close to 85 M eur. Direct sales to consumers via digital channels accounted for about 13% of total sales in 2017. For us, Digital is not only about sales but also touches the whole value chain and allows Reima to build new business models in order to better serve their customers.

We had been trying to work with Reima since, well, pretty much since we started winning awards back in 2014. They were not an “early adaptor” to a startup like ours but were convinced over time as we matured and in late 2017 we started with a simple pilot. 

Pilot in a nutshell

• Ship all purchases in RePack during a set period
• Reward users with a voucher off next purchase
• Collect and analyze end-user feedback
• Evaluate operational capability
• Decide on future implementation

Pilot in practice - 800 deliveries in a 2-3 week period

Finally, after some serious negotiations, Reima decided to trial RePack. We were delighted! 

In November 2017 Reima tested RePack in Sweden by shipping 800 deliveries in RePack packaging over a two-three week pilot period. The objective was to test RePack in a real logistical and operational environment and collect end user feedback (and that of their parents).

The set up was very simple. During the two-three week period, all purchases were delivered in a RePack. The customer could neither choose to use RePack nor were they selected to use it. Instead, we wanted a random sample of users. That meant customers were unaware they were going to receive their purchase in returnable and reusable packaging.

Inside the RePack there was a short note explaining what RePack is, how easy it is to return and why do it - reduce packaging trash, save money and feel better about oneself. An incentive was also added, offering 10% off their next purchase.

End-user feedback showed improved brand perception

Once deliveries were completed we contacted the customers to collect feedback through a questionnaire. 

Users were asked about Reima brand perception, RePack ease of use, unboxing experience among other things and a Net Promoter Score was also collected. 

20% of participants responded, despite no reward for participation.

The results were interesting, to say the least.

96,5% want to get rid of single-use packaging for good

Reima’s own research shows sustainability is increasingly valued by their customers, just as it is with any brand whose customers are mainly women between the ages of 25-40.

Still, we were little shocked to see North Korean popularity figures of 96,5% giving their support to Reima towards offering to ship in reusable and returnable packaging.

Willingness to pay for reusable packaging option

29% of customers said they are willing to pay extra for the reusable packaging option. 

Those who have worked in sustainability know that studies show people say they are willing to pay extra for sustainable solutions. RePack is no different to this. 

Of those who see the RePack option, generally 10% or less choose it, even if they are promised money off their next purchase. We have developed a mutually beneficial solution for this in the form of the Average Order Value model.

In short, free RePack as part of a high-value order. For example, every purchase over 100 € is shipped in RePack for free together. For purchases below 100 € the option in the checkout to pay for it remains. This combination delivers the most value to the webstore. You can read about the model in this case study

Net Promoter Score hits 82%

A voucher gifting 10% off the next purchase was offered as an incentive for RePack users, with six out of ten customers responding that they planned to use the reward. 

As feedback was collected only a month after their initial purchase, it remains to be seen how soon customers will return to claim their vouchers for another purchase.

In general, users gave 9/10 for their shopping experience at Reima while the Net Promoter Score was 82%.

Operational experience helps in the implementation phase

Operationally we learned that using RePack is just as smooth as single-use packaging - but without the trash. Although winter often catches you by surprise and so it did in this case as well - we underestimated the need for Large size packaging. 

L-size is designed to fit a large winter coat, adult sized pants, and a shoe box, as seen below. 

Kids' clothing orders fit in easily into a Large RePack and it’s still not shipping any empty air as velcro closing makes packaging adjustable.

Following a simple and very successful pilot test, Reima is now in a position to plan their next steps and implementation phase based on real customer data and operational know-how.

Linda Vainio, E-commerce Manager.What did Reima think of the pilot?

"For Reima the pilot proved that RePack gives tremendous added value when offered as a more sustainable delivery for our customers. “

Linda Vainio, E-commerce Manager.