GOOD PRACTICE IN SWITZERLAND In the private sector, a number of circular economy strategies are being developed, enabling players in the consumer goods value chain to take up opportunities and offer their employees and customers new solutions. Replacing linear economic models in the consumer goods sector to develop new opportunities In the current sales model, the manufacturer transfers ownership of the product to the customer. If it invests in ecodesign, the manufacturer creates added value from which it cannot benefit directly because this added value is not generated until further down the value chain. If it uses recyclable materials, currently only the recycler will benefit from this; the user will enjoy a longer product life and the service technician will find it easier to repair. In the current sales model, the manufacturer benefits only indirectly from its investment in a circular design through the improvement to the product’s properties, which may increase demand and sales. However, that in itself rarely justifies the required ecodesign investment. Besides the linear sales model, there are other business models that enable the producer to incorporate other parts of the value chain and therefore the added value of ecodesign in-house: Hire and lease models The Dutch company Desso (Tarkett group), which has a presence in Switzerland, uses circular economy materials in its carpets so that they can be entirely re-used to make a new carpet once the original one reaches the end of its use phase. It hires out and then recycles its carpets. Desso retains ownership of the carpet and therefore has a ‘stock’ of raw materials on its customers’ premises. The value added by recycling and the added value in the materials used and savings made by the easy disassembly process benefit the company directly. Desso is also less dependent on price volatility in the raw materials market and therefore benefits from more predictable materials costs. Staying in the textiles industry, CWS Boco applies a circular economic model to its manufacture of workwear and hygiene solutions in Switzerland. The logistics (collection and delivery), product sorting, washing and drying, quality control and repair or replacement are all included in the company’s hire service. In this model, CWS can invest in sustainable textiles and benefit directly from longer hire durations. In the furnishings market, Zesar is innovating by carrying out the repair, disassembly, reprocessing and recycling of its products. The company recently developed a circular economic model for the hire of school furniture.
44 CONSUMER GOODS INDUSTRY / EQUIPEMENTS
Service models that contribute to the economy of functionality A manufacturer can benefit directly from the energy efficiency of its product if it offers it as a service. The lighting manufacturer Signify, for example, offers ‘light as a service’. The customer simply chooses the lighting level and how long they want to have the lighting. The costs of provision, installation and maintenance of the lighting, and also the electricity costs incurred, are covered by the service provider. Through optimum planning of the lighting, selecting an energy-efficient light source and installing proximity sensors, Signify can reduce energy consumption by up to 70%. Optimising energy efficiency and circuit design therefore directly increase Signify’s profit margin. This makes the offer cheaper than if the customer had purchased and operated the product themself (comparison of the overall cost). The importance of ecodesign Pfister has developed the first collection of biodegradable curtains in Switzerland. To achieve this, Pfister has used various circular economy design techniques, including a Cradle to Cradle Certified™ process. Pfister products have been awarded Gold certification because their biological and technical cycles are fully optimised. After use, their curtains do not end up as waste but are bought back and fully reincorporated into the biological cycle. Pfister’s strategic choice has been so successful economically, the company has extended the concept to other product ranges such as bed and bath linen.
