The festive season saw many corporates indulge in their annual practice of spreading cheer through gifting. However, Hemal Gathani eyed this trend ruefully. 

He noted that this practice will lead to over 72 lakh tons of carbon emissions and 2.7 lakh tons of plastic into the environment by 2028, which is equivalent to cutting down 72 lakh trees. One can only imagine how this simple act of spreading festive cheer can further accelerate the effects of climate change and rising sea levels and, in turn, result in more health problems. 

Fortunately, many corporates have now become mindful of this environmental impact and are pivoting towards eco-friendly and mindful gifting. The Leela Palaces, Hotels and Resorts, for instance, came up with Leela Ke Phool. Anjali Mehra, chief brand officer and senior vice president for marketing at the hotel chain, said, “As part of our commitment towards a greener future, we introduced this unique initiative with Phool to show our commitment towards building a circular economy through impactful action.”

In this unique collaboration, the flowers used at The Leela Palaces, Hotels and Resorts were upcycled using Phool’s patented flower cycling technology to create incense sticks. These were then infused with Tishya by The Leela, the brand’s signature fragrance inspired by Kumud and Nilgiri, which were specially hand-rolled by women from marginalised communities.

From Eco-Friendly Store to Zero-Plastic Marketplace

India’s corporate gifting industry is pegged at Rs 12,000 crores and is expected to grow at an 8.5 per cent CAGR over the next five years to touch Rs 18,000 crores. However, there are very few zero-plastic options available. 

Identifying this white space, Gathani and Saurabh Gupta launched Loopify as an online zero-plastic gifting store in 2020 committed to eco-friendly corporate gifting solutions for various occasions. “Our journey with Loopify was inspired by a deep passion for the environment and a commitment to addressing one of the most pressing global issues, plastic pollution. Every day, an astounding amount of plastic, equivalent to 2,000 garbage trucks, finds its way into the world's oceans, rivers, and lakes. This relentless plastic pollution, with 19-23 million tonnes of plastic waste leaking into aquatic ecosystems each year, is an urgent global problem,” Gathani stated. 

Initially conceived as a store for eco-friendly products, the pandemic led the founders to pivot into an online marketplace for zero-plastic products. Recognizing that promoting a sustainable lifestyle is a significant behavioural change often requiring substantial marketing investment, they made another pivot by offering 100 per cent plastic-free gift solutions. The insight behind this shift was encouraging people to make a simple yet impactful choice in their gift selection without needing significant lifestyle changes.

“This transition has allowed us to create awareness and promote eco-conscious choices, particularly among corporates embracing zero-plastic gifts. Within two years, Loopify has sold over 500,000 zero-plastic products since its inception in July 2020 across 5000 product categories,” Gupta added. This has prevented over 32,000 tons of carbon emissions and helped stop more than 1.22 lakh kg of plastic from going to landfills and oceans.

Their approach to selecting sustainable products for the gifting platform involves a comprehensive process beginning with the start-up’s vendor experiences team. They conduct rigorous research to identify the right partners who produce high-quality, eco-friendly products that align with their sustainability commitment.

Innovative Collaboration

To create a trustworthy zero-plastic brand, the duo designed a stringent standards policy that does not tolerate even a single gram of plastic in their offerings. This is where their prior experience working at a global UX design company and starting their own UX design agency, ZEUX Innovation, came in.

“We go the extra mile by personally visiting our partner sites to verify that all the necessary sustainability protocols are being followed. Moreover, before shipping out hampers or products, we conduct thorough quality checks to guarantee that our customers receive the best,” Gathani elaborated. 

To achieve sustainability without compromising affordability, the company balances the equation between offering fair remuneration to its partners. This helps its partners build a sustainable business and provides clients with competitive pricing, central to Loopify’s pricing strategy.

Loopify operates primarily in the corporate gifting vertical, an online-only operation through our website. It is now expanding into the personal gifting category, offering direct-to-consumer (D2C) options through its website and listing its gifts on online marketplaces like Amazon, Flipkart and FNP. 

Discussions are underway to expand its presence on other platforms. Currently, the company does not have an offline presence and does not have plans to establish physical brick-and-mortar stores.

“Considering that our focus is to grow our business sustainably and ensure a strong foundation, the initial two years were spent on identifying the right product market fit and setting up processes and systems to scale profitably. Hence, we didn’t grow considerably in the first two years of our operation. However, this year, we are on track to have 200 per cent growth as compared to the last fiscal year,” Gathani added. 

Currently a bootstrapped venture, the founders plan to seek funding once they become profitable by the end of this fiscal, which will help them scale operations. It also plans to set up an R&D to introduce sustainable products in newer categories and digital products that will reduce customer acquisition and offer a better experience through the entire journey from lead acquisition to fulfilment. The founders hope these initiatives will double its B2B sales and result in a 10X increase in sales in D2C and marketplaces.

Measuring Impact

There is a general belief that sustainable products carry a premium price, which can deter many consumers. Acknowledging this challenge, Loopify is working to address it.

Gupta explained that there is a typical lifecycle wherein new products are introduced at a higher cost in the world of consumer products. Still, prices tend to decrease as they gain acceptance and production scales up. The market for eco-friendly products is still relatively new, and the benefits of large-scale production have yet to materialise fully. 

“However, we are witnessing a growing demand for plastic-free products, which is a positive sign,” he added. “With time and increased demand, we believe that eco-friendly products will become more cost-competitive when compared to their plastic alternatives. By making sustainable choices more accessible and appealing to consumers, we aim to foster greater demand for these products, ultimately contributing to a future where sustainable options can compete favourably in pricing.”

Loopify's proprietary Sustainability Index (LSI) calculates how much less plastic pollution and carbon emissions its product causes than plastic products by conducting a comprehensive evaluation that considers the entire supply chain. It collects data about the materials, manufacturing processes, transportation, and disposal methods associated with each product they offer. 

This information is then compared to the equivalent data for traditional plastic products and the comparative analysis assesses the environmental impact of each product. The LSI quantifies the reduction in carbon emissions and plastic pollution by choosing a Loopify product over a traditional plastic product. It provides specific figures on the positive impact made with each purchase.

“Having such an index can be a powerful tool to attract corporate customers to opt for Loopify's offerings. It provides transparency and data-driven insights, which are valuable for businesses that want to demonstrate their commitment to sustainability and reducing their carbon footprint,” Gathani explained. “This can align with corporate sustainability goals and contribute to their efforts to reduce plastic pollution and carbon emissions. Additionally, by setting an industry standard for measuring and communicating sustainability in the corporate gifting industry, it also differentiates Loopify in the market.”

In the past, corporate gifts were typically generic items like sweets, dry fruits, and gift baskets. However, today's businesses increasingly opt for personalised gifts that reflect the recipient's interests and preferences as meaningful and memorable options.

By offering eco-conscious corporate gifts and clearly measuring their environmental impact, Loopify supports companies in achieving their ESG objectives and making eco-friendly choices that contribute to a greener and more responsible business environment. For every order, it provides corporates with a certificate that clearly states their impact on their gifting choice, quantifying the environmental benefits of the kilograms of plastic pollution and carbon emissions prevented.

As businesses become more conscious of their corporate gifting practices' environmental and social impact, they are increasingly opting for gifts made from ethically sourced sustainable materials. The rise of online gifting platforms has made it easier for businesses to send gifts to employees, clients, and partners nationwide. Online gifting platforms like Loopify offer a wider range of gift options, including personalised and experiential gifts.

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