The transition we need to do for a more sustainable industry will require that we contribute to sustainable consumption and step into the circular economy with new, profitable business models that extend product life.
SOG Sustainability Network investigates possibilities to accelerate the needed change as an industry network. During 2021 the first steps were made by exploring common solutions for circular services, mapping existing circular initiatives and creating a knowledge-sharing platform.
An initial Survey was made, 21 brands responded to questions about wishes, needs and goals within circular business models.
- The interest in circular services revolved primarily around Repair, Re-commerce, Return services and Rental.
- Subscriptions, Re-design and other offerings are possible development steps when the primary ones start to settle in the companies.
- Many companies have already started trials or are on their way with smaller pilots of the primary offerings.
- Repair services are common in the industry traditionally, but often offered as a customer benefit/extended service than a profitable business model.
The main obstacles for circular services are:
- Cost and Revenue
- Competition with established channels in the field
- Technology
- Knowledge about best practices, available resources, etc.
- Culture, both within companies and among customers
- Design of products, services and systems to match new demands in circular services
Besides developing services within the primary categories above, companies are also interested in the supporting tools and systems that enable/simplify circularity offerings and make them more streamlined and scalable:
- Digital platforms
- Logistics services, packaging solutions
- Standards, procedures for scaling
- International upscaling enablers
We continue searching for new opportunities to move our industry further towards the circular economy. If you want to get involved or are interested in the previous project, feel free to contact Joel Svedlund.