(Inspired by the Social Capital Index located here on xigi.net, two analysts are posting their take on the enterprises listed in Deals in Play. Deals in Play is a new feature of the Social Capital Index that lists social ventures actively seeking capital. Following is Jason Rissman’s analysis of one of these enterprises.)
OSO ECO
By Jason Rissman
Wouldn't it be nice if there was a fun, easy way to find sustainable products and shop more responsibly? OsoEco is a new company, still in private Beta testing, that thinks it can help. While I won't give away some of their unique features, OsoEco's formula is simple: Layer a green filter onto the proven social shopping mold (ala Kaboodle) and there we have it, smart shopping made easy.
While I do think there is opportunity in the green e-commerce space, I also think there are sizable challenges that OsoEco will face. Here's a couple that stand out for me:
1) First, its no easy feat deciding which products are green, greenest, or even green enough. Until we have a more standardized audit of production processes and of the carbon footprint of individual products, comparing mainstream companies and products is a tricky game. This isn’t to minimize the recent eco-boom of small companies with products specifically designed to have minimal impact, and I think the company has an opportunity to connect these smaller companies with buyers. Even a short time on their beta site introduced me to several interesting products. If the company can successfully recruit an eager community of sustainable shoppers to post product recommendations, OsoEco could become a great resource for finding products that at least seem green to others. Peer validation, however, is a far cry from impact assessment. I hope OsoEco can provide enough information so this is more than a way to feel good about buying questionable products.
2) As demand for green products grows, so will competition for OsoEco. This will include other social shopping sites or green product sites, but also…
- Green content sites that often include product reviews (Treehugger, e-commerce enabled Lime, or RiverWire - which recently raised $1.5m)
- Large e-commerce sites (Amazon, Buy.com) which could include more green products and information
- Direct retailers that could easily start including more green products. For instance, stores ranging from Wal-Mart to Crate & Barrel already highlight organic products
Will OsoEco’s content and community set it apart and provide a barrier to entry against other shopping choices? Perhaps close partnerships with existing organizations could help.
A question I’m left with is how far are we from a more comprehensive green ratings system? Here’s one idea for a eco-nutrition label for products. Greener One has launched their own independent rating system. Am I wrong, or are we in need of some standards?
