A4 Report Template - CII

“Green Products” Emerging as an ImportantOpportunityThe focus on sustainability has also meant the emergenceof a growing market for “Green Products”. Globally, thismarket is estimated at ~US $190 bn and expected to growat ~15% year–on–year across segments like alternativeenergy, construction of green buildings and green consumerproducts like organic food and cotton (as shown inExhibit 4j). Large sections of consumers across the developedmarket, and increasingly so in RDEs, are beginningto prefer greener products.Many companies like Walmart, GE, Tesco and Unileverare already taking a lead in addressing the market forgreener products. GE launched its ‘ecomagination’ campaignin 2005 to develop green products which serve customerneeds, offer a superior value proposition or operationalperformance, and impact environmentalperformance. GE also instituted a product review processto quantify the product’s environmental impact. Theproduct claims on environmental benefits were auditedby a third party. Today ‘ecomagination’ spans a largeportfolio with more than 80 products across multiple verticals,ranging from energy products like efficient turbinesand transformers to energy efficient consumer productslike dishwashers and refrigerators. This has generatedrevenues of close to ~US$ 17 bn, with R&D investmentsof ~US$ 1.4 bn 9 .“Green” is clearly moving on from being a mere buzzword to a trend with significant business potential. Companieswill need to take a closer look at their productportfolios and rethink their business models to benefitfrom this. The transformation will not be limited to targetinga newer product sub–segment, but rather will requirere–creating a whole new business model around it.New Green Technologies will Shape FutureMarketsSustainability trends have given rise to new technologiesthat will significantly impact future businesses. Researchin renewable technologies like wind, solar and water isalready yielding environmental and business results. Developmentin other areas like nanotechnology, fuel cellsand wireless communication are likely to create ecosystemsfor sustainable growth (as shown in Exhibit 4k).9. Company releases; new reports.Exhibit 4j. Green markets expected to cross US$ 280 bn by 2011Expected growth for Green markets 2008–2011US$ Bn300+15%280+49Biofuel20019069Wind3551405SolarFuel cellsGreen buildings10030223494777Organic consumerproducts020082011Source: Cleanedge (for Biofuel, wind, solar and fuel cell estimates); Data Monitor and Cotton exchange; BCG analysis.40 The Boston Consulting Group • Confederation of Indian Industry