Should Shoppers Pay For Carry Bags?
The teens @ the Young Writers' Club, had an interesting case to consider. A consumer suit against BATA, a popular shoe company in India.
They contended that BATA must provide free carry bags for the footwear bought at their store. In addition to paying Rs.3 for a carry bag that carried the brand logo and slogan amounted to the consumer paying for the advertisement of the product. BATA responded that they were simply recovering the cost of the bag. Advertising logo was in accordance to Article 19(1) of the Constitution of India, argued the company.
Both consumer commissions ruled that BATA must compensate the consumers. Both cases BATA ended up transferring almost Rs.3000 (compensation) +Rs.1000(litigation costs) to one consumer and the other Rs.8000 to cover both costs.
Initial reactions
“It seems like a lot of effort for avoiding Rs.3 for a carry bag.”
“If I don’t want to pay for a carry bag, I don’t mind holding the shoe box in my hand.”
“Or I could carry a carry bag of my own.”
“If I must carry a bag with the company logo, I would prefer that it is not too bright. I don’t want to be attracting attention.”
Debate
“Speaking of the company logo and the consumer being unwilling to pay for it, aren’t we indirectly advertising when we wear footwear from BATA? These come with their company logo. So why have a problem with a carry bag?”
“A carry bag becomes necessary if one is planning to shop in many stores. Paying for a carry bag everywhere is not something I would want to do. In such a case, I do have a problem paying for the bag with a logo on it. I don’t want to be the brand ambassador for the store!”
“On the flip side, the company hopes that it grabs every opportunity to advertise its brand, including a random customer walking with a BATA bag in a mall.”
“Why do people care? They see someone walking with a BATA bag. So? How does it help the store in anyway?”
“It is a form of advertising to inform people that the store exists in the mall. It prompts them to think in the lines of whether they need something from BATA, now that they know it is in the mall. It could be something as small as a pair of socks that the consumer might be forgetting to buy.”
“There are directories in malls. People can find their way to a store if need be. They don’t need people walking around with shopping bags with the company logo. Worse, these people would have paid to advertise for the company, it doesn’t make sense.”
“Huge displays and attractive window displays also help. People don’t need to walk around with bags.”
“Even if a small number notice the brand logo in a given time, it adds up over time as more and more people shop.”
“Directories and websites tend to be outdated. For people who don’t necessarily plan or simply forgot to add something to their planned outing, could get a chance to get something as small as a pair of socks or handkerchiefs for example. Seeing a bag with the logo could help remind them that they need to run this small errand. That brings the customer to the store. That’s a win.”
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“The company needs to bear the cost of manufacturing the bag and hence needs to recover the cost. Hence, it is fair that they charge. Also, these are optional. If the customer doesn’t want to pay, best to get their own shopping bags. That’s allowed.”
“I am not going to be happy to pay for a carry bag when I have bought a lot from the store but forgot to carry a bag. It is reasonable for me to expect the store to give me a carry bag for free when I have bought something significant from their store. That’s the least they can do!”
“If BATA decided to include the cost of the bag in the price of their products, that’s even more unfair to the consumer who remembers to bring a carry bag. Keeping it optional, is the right decision.”
“This is an extra way for BATA to make money.”
Arriving at a fair solution
On one hand we have a disgruntled customer who finds it unfair that he or she is charged for a carry bag after buying something substantial from the store. That leads to the further thought about the logo, which the consumer may have otherwise not really bothered about. They might even consider it a status symbol. But paying for the carry bag, hurts. Even more so with the logo, feels like one is paying the company to be its brand ambassador. That means a highly dissatisfied customer! That’s bad for business.
What is also bad for business is not be able to recover the cost of manufacturing a carry bag. Including that cost as a part of the retail price is unfair to consumers who don’t opt for a carry bag.
A win win situation
Having considered both sides of the equation, the group came to a consensus after hearing the idea of one of the teens proposed.
“Taking a leaf out of the approach that companies like Amazon and Big Basket have taken, which is to fix a threshold. Big Basket and many other delivery service providers offers free deliveries provided the bill amount exceeds a particular amount. This way, the consumer doesn’t feel like they have been unfairly charged even after buying something significant and the company gets to recover the cost as well.”
This proposed solution appeared to be a fair solution. It raises the possibility of the customer understanding that there is a cost involved in providing a carry bag or a delivery service for something very small. Either the customer chooses to pay extra while buying something really small or chooses to buy more to reach the threshold and waive the extra charge. It’s good for business. Whether the additional purchases are really necessary or not - that decision falls on the consumer. Either pay a nominal extra amount or buy something more that you think you want and waive that extra amount.
Kudos to the teens for actively engaging in the group discussion, relying on their own personal experiences, asking the right questions to find information to support their point of view and above all leading the discussion to a meaningful resolution.
Previously published on Musings from the Young Writers’ Club magazine which is a Talking Circles publication.