Often innovation is centralized around industries in their early development and growth stages. These industries tend to move quickly, with high product turnover and new advancements produced annually, if not sooner. But what about mature markets that have steady demand, yet almost no innovation?
The toilet paper industry sees annual revenues of over $5 billion, yet have limited innovations of both product and process (Note that there enhancements in quality, documented here). Although the demand for product is guaranteed, there are high barriers-to-entry, which result from cost competition among the current firms. Enter True Earth Paper.
Instead of using traditional paper, or even recycled paper, True Earth Paper uses bamboo as the main ingredient of its product, which is known as Silk’n Soft. The company sources the bamboo from China, citing deforestation as a major driver of their sustainable brand. The product has been a success, and has allowed the company to diversify into towels, and now even trays made from bamboo as well.
So how did this Canadian company penetrate the market? The founders participated in the show Dragon’s Den, and ultimately rec
eived offers from all 5 ‘dragons’. Getting the national publicity and recognition was huge for their image, and the company has begun receiving orders from across the globe. Although their initial success was derived from the show, True Earth Paper has continued to stress the positive environmental impact they have. I believe that this continual reinforcement, stressed through a well-developed website and online interviews, is what allows the company to compete with larger competitors such as P&G. What’s more, the company has been able to show their impact on the environment throughout the whole lifecycle of the product, leading to more trust from consumers through higher transparency of their practices.
To watch True Earth Paper on Dragon’s Den, check out this video:
Hi Sam,
Thank you for opening my eyes to bamboo as a environmentally friendly resource! It’s amazing how most people (myself included) have overlooked the properties of bamboo for the production and possible replacement of tree based products. Looking back at the 3 levels of ethics we discussed in class, True Earth Paper seems to be a ‘good business’ company where being sustainable is their innovative strategy to succeed on the market. I was just wondering if you knew whether they had patented the use of bamboo to manufacture these paper like products, or if the costs of producing these products from bamboo were significantly higher, thus creating a barrier for competing companies to follow suit with using bamboo as a resource? And lastly in the video Brad mentioned that some scientists believe that planting enough bamboo will potentially ‘reverse global warming’, what are your thoughts on the likelihood of that?
Thanks again!
Sarah Paw
Thanks for the input Sarah!
I actually did look into their patents, and couldn’t find anything. I have left a comment on their website asking for more information about their processes and patents, so hopefully I hear back soon and can share the results (on a side note, after you leave a comment the site takes you to a video of pandas playing — completely worth the 1.5 minutes!).
As far as the likelihood of bamboo reversing the effects of global warming (or at least negating them), I have mixed feelings. I was able to find very little to lead me to believe scientists take this seriously (although here is an article that does http://www.ecology.com/2013/05/15/what-can-bamboo-do-about-co2/). There are definitely merits about bamboo — it grows unbelievable fast and does offset carbon dioxide — but at the same time, there is limited use, so particularly in North America, I don’t feel as though there is enough of a demand for it. Were more companies to shift to using bamboo products, then I think North American scientists would investigate more. At the very least, it has proven to be an effective alternative to paper products that is quickly replenishes and has a lesser effect on the surrounding environment.
– Sam
Nice post, Sam! What a great example of a company that’s challenging the norms of the industry they operate in.
I’m a little foggy on the details, but I remember in COMM 296 we were taught that the typical “industry life cycle”. The early stages featured creativity and innovation, while the later stages of maturity saw much more stagnant, profit-focused, market-share-driven development.
The toilet paper industry is definitely towards the latter stages of an industry life cycle… but companies like True Earth Paper are undoubtedly “innovating” the industry. It seems like when viewed through a sustainability lens, it is perhaps the most mature industries are the ones that need the most innovating! Another example that comes to mind is Interface Inc. Not the most exciting growth industry, but integrating sustainability into it sure made it a lot more interesting.
Great post, Sam! I’m glad you’re creating awareness of the diverse uses of bamboo. It truly is a material more companies should look into using.
I’ve actually been buying Silk’n Soft for a while now; it’s become my regular toilet paper brand. After conducting research into the industry, I fell in love with True Earth Paper’s company ethos. They are truly a sustainable company at heart. I try to buy products from local, Canadian companies, so finding out that they’re based out of Victoria was a huge plus for me. It also doesn’t hurt that they’re product is genuinely great. They’ve recently improved their rolls too, they’re now made from 100% bamboo.
Unfortunately, True Earth Paper faces a significant barrier to achieving mainstream success, and that is convincing the lighter shades of green consumers to give them a try. While green alternatives have proven their efficacy in many product categories, the same is not true for toilet paper. There is still a largely negative perception of green toilet paper brands, an unwarranted one I might add. I have used several recycled-paper toilet rolls and while they might not be overly soft like the regular rolls, they do the job well. I mean how amazing do you really need something you’re going to flush down the toilet to be. I hope this trend doesn’t continue and people become more open to trying green alternatives.
Thanks for such an interesting article!
It definitely made me rethink bathroom tissue. With regards to the future success of the brand, I can definitely see bamboo being used for other products in place of trees. I’m guessing the toilet paper household penetration rate is probably 100% in Canada (what else could people be using….?), how do you think their success has been in converting brand loyal Royale consumers to use a product that may make consumers skeptical on the quality?
It’s also interesting to see if there will be any global impact down the road if bamboo use picks up to replace trees. Makes one wonder if it would lead to bamboo deforestation as well and threaten pandas’ (who are already endangered) source of food.
Hi Sam!
I’m simply amazed by how useful Bamboos can be. I had no idea and this could potentially change the entire paper production methods in the long term. I’m also a huge fan of the show, and seeing all 5 dragons making offers proves that there is a huge potential for these products. It is also very important that the retail price of Silk’n Soft is about the same as other leading brands, which will make it much easier for the customers to switch.
I will definitely look into how bamboos can be used alternatively and is it actually possible to produce writing paper from bamboos.
Thanks
Burak