The common business model structure is what we would call a linear model. Linear because the business creates products and sells them. When customers are done with them are disposed of, the product goes one way, and the value of the product is lost at the end of its one use. The circular model by contrast is designed to capture value all along the supply chain and lifecycle of the product, such that there is no waste and additional financial value is captured. In this case a business designs itself and its product to be resold, repaired and recycled.
An opportunity exists to shift towards a circular business model for brands in the apparel industry to increase revenue, reduce their carbon and waste as well as meet upcoming regulations. Even though the concept has been around for over a decade it still feels innovative to shift one’s business model.
Findings from evaluating 10 pilots from TRW and Bleckmann’s experience
Since 2015, The Renewal Workshop on its own and during the 3 years since the acquisition by Bleckmann, we have participated in over 20 pilots for brands exploring resale as part of their circularity strategy.
To embrace circularity as a part of businesses core strategy means that the company has adopted a growth strategy that relies on resale, repair, recycling as part of overall business growth and has adapted design, systems and financials to reflect that. Surprisingly, the majority of the brands are still in a pilot phase. The shift to scale circularity as part of the core business strategy is rare.
We were curious why that was and identified ten of the pilots that were thoughtfully structured to analyze what worked and what didn’t. We hope that the results of this paper help influence brands across the industry to conduct successful pilots or even adjust current pilots so that they can scale into meaningful change for Circularity.
