DIGITAL INTERACTIVE SERVICES

The way forward: How the circular economy is changing the game for brands?

Refuse. Reduce. Reuse. Repair. Recycle. These are the 5 fundamental tenets of sustainability, a thought that is at the core of the circular economy concept. The concept promotes rejecting unnecessary consumption, lowering consumption, reusing items, mending products (rather than replacing them), and recycling materials (at the end of their useful life) to emphasise sustainability.

In the traditional linear economy, products are for one-time use. They must be discarded at the end of their lifespan.

Let us understand the two economies with an example. Consider the production and use of smartphones. A smartphone is built with various raw materials that include metals, polymers, and electronic components.

In a linear economy, the device's components are designed for single use, so when the device becomes outdated, malfunctions, or is no longer wanted, it must be disposed of, as the components are not repairable or suitable for reuse.

On the other hand, in a circular economy, the smartphone design facilitates easy repairs and upgrades of parts. Eventually, when smartphones reach the end of their useful life, they are disassembled, and their components recycled into new smartphones or other electronic products.

The circular economy concept is changing the way brands operate and engage with customers.

A transformative approach

Brands are increasingly adopting sustainability as a core value. Rather than focusing simply on profit, they are dedicated to cutting waste, saving resources, and lowering their environmental impact.

Here's how circularity is changing the game for brands:

• Adoption of circular design principles: Product development is guided by circular design principles such as those based on the concepts of cradle-to-cradle and biomimicry. The cradle-to-cradle design emphasises the creation of products and systems that not only prioritise environmental friendliness but also possess regenerative qualities. For instance, consider C2C carpet tiles that can be easily disassembled, with their components recycled or reused in the production of new carpet tiles.
  Biomimicry draws inspiration from nature's designs, processes, and systems to drive sustainable innovation. A notable example is Velcro®, the hook-and-loop fastening system, inspired by the way burrs from the burdock plant attach themselves to clothing. Through these approaches, companies are striving to develop goods that generate minimal or no waste.
• Modularising product design and development: Product design is reimagined with modularity in mind, such that components can be fixed, updated, or repurposed, departing from the integral approach where parts cannot be salvaged, and items must be discarded when their lifespan ends.
• A shift from ownership to access: There is a shift away from owning items towards accessing services. Product leasing, sharing, and subscription services are being investigated by brands as ways to minimise the need for ongoing consumption.
• Initiatives for recycling and upcycling: Brands are adopting recycling and upcycling practices. They are developing novel methods for repurposing materials and waste into new goods, hence reducing the demand for virgin resources.
• Demand for transparency and traceability: Blockchain and other technologies are being used by brands to give today’s environment-conscious consumers real-time information on the origins and environmental impact of their products.
• Mindful collaborations and partnerships: From sourcing raw materials to manufacturing and retailing, brands are actively seeking and partnering with those that adhere to sustainable practices. These collaborations align with the brands' commitment to sustainability and their efforts to reduce their environmental impact throughout the production and distribution process.
• Imparting consumer education: Brands are dedicated to promoting awareness of the advantages of the circular economy. As part of this, they are allocating time and resources to educate consumers. Informed consumers are more inclined to endorse brands that align with their values.
• Compliance with regulations: As environmental rules become more strict, brands are being pushed to adopt circular practices. Compliance with these regulations is gaining traction as a competitive advantage.
• Enhanced brand reputation: When a company places sustainability and circularity at the forefront of its business practices, it sends a clear message to consumers that it is committed to responsible and ethical operations. This commitment resonates positively with consumers and the company's reputation benefits from being associated with environmental and social responsibility.

The path to a responsible business landscape

Embracing the circular economy heralds a new age for brands, one that places sustainability, accountability, and innovation at the forefront. Businesses that place a strong emphasis on sustainability not only play a role in fostering a more environmentally aware world but also reap the benefits of an enhanced reputation, a devoted customer following, and a competitive edge in an increasingly sustainability-oriented market. The transition to circularity holds the potential for a prosperous future for all.

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