You might know the circular
economy by some
of its common names — thrifting,
upcycling,
swapping,
recycling,
secondhand
goods,
rental,
resale,
reuse,
repair
or even composting. Any time goods or materials are resold or reused rather
than disposed of, that’s the circular economy in action. Designed like nature’s
systems, where there is no such thing as waste, a circular economy is nothing
new (no pun intended); reusing goods has been a common social and cultural
practice for ages.
But recent innovations in circular business models and brand design are
attracting new participants and making it one of the most exciting — and
profitable — opportunities in retail today.
A mighty combination of consumer demand for affordability, sustainability and
unique style has led to secondhand becoming a $197 billion industry that more
brands are racing to access. Beyond
apparel,
circular models are also growing across
electronics,
sporting goods, consumer
packaging,
and
retail
of all types.
However, innovation in circularity is not just about designing new reuse
systems: To unlock the success of these systems and move people toward circular
behaviors, we also need to tell new stories that move us from a place of
obligation and
burden
(Save the planet! Stop wasting bags!) to one of simplicity, joy and desire.
When regenerative systems and stories combine, that’s where brands
differentiate, break through and pave new ways forward for their categories.
To unleash the power of circular design at scale, brands require an
understanding of the cultural conditions at play. Here are five design
principles that we’ve learned from our work with brands helping lead the way.
5 Principles of designing for circular behavior
1. Design for human truths
Image courtesy of BBMG
Circularity is only successful if we can get people to want the systems we’ve
designed. This is especially true when consumers are an intrinsic part of the
circle — as is the case in many takeback and resale
programs
— or when we’re asking people to shift a well-worn behavior, such as using
disposable products for everyday household use.
In working with Target to create its reduced-waste collection, Target
Zero, we identified the tension people feel when balancing the products they love and need with the waste in their lives. Honoring this dynamic tension helped Target create and curate
products and packaging
solutions
designed to be refillable, reusable, compostable — even eliminate packaging
completely — and feature them via in-store endcaps and as a curated platform on
Target.com.
Takeaway: Start with sensing and serving a deeply felt human need.
2. Design for access
Image credit: Recurate
To ensure maximum usefulness of circular products and services, it helps to
design for those at the extreme ends of the behavior spectrum. In the social
sector, this is sometimes called the “curb cut
effect” for the way
sidewalks are often designed for accessibility. A curb that’s cut to allow
someone in a wheelchair to roll easily across an intersection happens to also be
useful for many others — parents pushing strollers, elderly people with walkers,
a delivery person rolling a dolly. A feature designed to provide access for
specific users ends up benefiting everyone in the community.
In our partnership with resale platform Recurate,
our study of shoppers
revealed that people not yet engaged in resale see the many benefits of
participation — save money, reduce waste, score unique items — if only we could
remove barriers to participation.
Like the curb cut effect, Recurate designs for the full spectrum of brands and
consumers in a circular economy. Its accessible, tech-enabled resale service
lets brands seamlessly integrate
resale
into their ecommerce by turning consumers’ closets into their inventory — no
takeback program or warehouse necessary. And for shoppers, Recurate maximizes
trust and loyalty by placing resale items from their favorite brands right
alongside new apparel and gear.
By making it accessible for everyone to purchase secondhand items in one
brand-led shopping experience, Recurate is bringing more people into a circular
economy while helping brands enjoy the benefits of fuller shopping baskets,
repeat purchases, brand loyalty and a positive impact on the planet.
Takeaway: Solve for the extreme ends of the behavior spectrum to unlock
exponential benefits.
3. Design for ease
Image credit: Consortium to Reinvent the Retail Bag
While making awesome secondhand finds accessible is one challenge, making a new
circular behavior easy to adopt is another — especially when the wasteful
version is so deeply ingrained in our day to day.
For decades, we’ve been trained to expect disposable packaging at the point of
sale. Coffee cups, plastic bags, to-go containers. Convenient? Yes. Sustainable?
No way. Gradually, as a culture we are unlearning this wasteful routine — but
there’s a long way to go before we’re all bringing our own containers
everywhere, because the disposable option is still the easiest and default
choice.
To get people to adopt a new behavior, it can be helpful to stack it with
existing behaviors — so, it simply slips into an established routine. This was
the behavioral logic that inspired our recent creative collaboration with
Closed Loop Partners to make bringing
your own shopping bag as automatic as bringing your phone, keys and wallet when
leaving the house.
Closed Loop Partners are pioneering the “Beyond the
Bag” initiative — a
partnership in which national retailers are working together to design plastic bag waste out of the
shopping
experience
through a series of experiments to move consumers towards reusable bags. Recent
beta tests in Denver and Tucson — supported by BBMG
— eliminated the use of an estimated 2.4 million single-use plastic bags, and
76 percent of customers report bringing their bags more often following the
campaign. Gentle nudges with minimized lift that fold right into people’s
well-worn routines have been the key to success.
Takeaway: Ride an existing behavior or norm to make circularity the easy
choice.
4. Design for reciprocity
Image credit: Just Salad
Another way to get consumers to go circular is to reward them when they
participate. Target incentivizes
guests
to return old car seats for recycling by offering them credits for in-store
purchases of new baby gear. Starbucks offers a
discount
when people bring their own mug — and recently expanded the offer to mobile and
drive-thru orders, too. The idea of mutual benefits is a no brainer, and it
works.
Our client, Just Salad, the first
quick-serve restaurant chain to carbon-label its
menu,
also offers the world’s largest and longest-running restaurant reusable bowl
program. When customers purchase a
reusable bowl, they earn a free topping (such as avocado) every time they reuse
it. The program avoids nearly 25,000 lbs of single-use packaging waste per year;
and after just two uses, greenhouse gas emissions and water use are reduced
compared to single-use bowls. Today, the chain has grown to over 80 locations
and it’s among the top five restaurant chains in terms of sales growth.
Takeaway: Align rewards and relationships to instill new habits together.
5. Design for pleasure
Image courtesy of BBMG
While we may feel proud to shout out the environmental friendliness of a
circular innovation, there may just be something more intrinsically fun,
exciting — or dare we say sexy — motivating people to participate. And that
should be the headline when it comes to marketing.
A recent source of inspiration for our team has been the writing of adrienne
maree brown on, among other things, “pleasure
activism.” She makes the case
that the work to right wrongs in society can and should also be a source of joy
and pleasure — a way for us to feel whole, happy and satisfied. Why not take
that same approach to moving people towards sustainable behavior?
When BBMG worked with The North Face to
brand and launch its refurbished product line — The North Face
Renewed — an “a-ha” moment for us was
when we learned that for its target audience of younger outdoor-apparel buyers,
style, performance and access to adventure were more motivating than simply
being sustainable (though that mattered, too). So, our brand story to launch
the
collection
was all about celebrating the “Revival of the fittest” and “Clothing remade to
explore more more more.” That it’s also an exciting way to significantly reduce
the environmental impact of the apparel we buy offers the added win.
Takeaway: Make it a want to do, not a have to do.
Most of us want to do the right thing by the planet, but ingrained habits and
the immediacy of convenience can get in the way of making circularity the
obvious choice. By designing for deeply felt human needs and optimizing for
access, ease, reciprocity and pleasure, we can create more products, services
and experiences that people love, that disrupt categories, and that shift
behavior toward a regenerative future for retail where recommerce goes on and on
and on.
For more on this topic, check out our interview with two circular visionaries —
Closed Loop Partners’ Kate Daly and
entrepreneur John Atcheson — on
BBMG’s podcast, “The Future We Want: Accelerating the Circular
Economy.”
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Published May 6, 2024 8am EDT / 5am PDT / 1pm BST / 2pm CEST