Considering the User in the Circular Economy

4 downloads 0 Views 3MB Size Report
... products that have poorly thought out requirements of users. Page 31. Page 32. Nudie jeans repair service… Shoreditch vs. local, affordable high-street repair.
Considering the User in the Circular Economy Vicky Lofthouse & Sharon Prendeville Design School & Institute of Design Innovation, Loughborough University

The majority of circular economy case studies discussed in the UK are focused on business-to-business markets… The main focus in Circular economy is on B2B

< picture suggestions>

As such the user centred focus of ID is often missing from the discussion…

The narrative around the Circular Economy is also overly technical, which orientates the focus away from design – further precluding consideration of user-centred approaches…

...however as with ‘ecodesign’ we would argue that we need a systemic approach that considers consumption & production…

Islabikes… … manufacture & sell high quality children's bikes… …they live & breath cycling & bikes, their ethos is UCD driven…

More @ https://susdesignblog.wordpress.com/

Islabikes… …recognized that rising costs of resources are a threat to the affordability of their bikes …responded by undertaking parallel NPD to think differently about their bike design …working towards a durable product suitable for rental market (innovations in frame construction, materials used, pedals & handle bars) More @ https://susdesignblog.wordpress.com/

Challenge: - widely recognised as holding their value in the second hand market (approx. 80%) - for some demographics, this influences their purchasing behaviour, makes them more willing to make the initial high investment - new service models will need to take this into consideration - if ignored the CE model could fail

This paper uses illustrative case studies from the literature to consider the opportunities and challenges of taking a user-centred approach to innovation within CE contexts & considers areas for further research…

There are many reasons why businesses may explore new circular business models in the B2C sector, including: • opportunities for innovation • ‘green enterprise’ in their DNA (particularly start-ups / entrepreneurs) • foreseeing future regulatory changes • recognition of threats to future business within a linear economy • enthusiasm within marketing departments to be seen to be doing the latest thing… (greenwash…??)

However without careful consideration these business strategies can fail due to nuances in individual preferences OR consumers adjusting their behaviour in unanticipated responses to the new offering (Scheepens et al., 2016) Certain markets have proven to work well for users: - short-term leasing (e.g. hardware tools), - second hand furniture - buying products that retain value on the second hand market (e.g. high end kitchenware) BUT this is not the case for all products/ markets (Edbring, Lehner, & Mont, 2016)

By recognising that there will be different levels of acceptability of different CE business models, by different user groups across different sectors, industry will be better equipped for successful innovation…

Existing approaches…

STRATEGY: LEASING: SECTOR: APPAREL Mud jeans have adopted a rental model where consumers can "wear new, up-to-date jeans without owning them”. Users can lease Mud Jeans for €7,50 a month (with an initial down payment of €20)- after 1 year, the user can swap their jeans for a new pair, and continue leasing for another year, pay for four extra months at €5 each as a ‘deposit’, after which the user can wear the Jeans as long as he likes, or end the relationship by returning the jeans to Mud. Free repairs are included in the offering. For those who... keep the jeans, the company offers financial incentives to return items, to encourage recovery.

STRATEGY: Extend Product Lifespan SECTOR: APPAREL Offering repair services (e.g. Nudie jeans and Patagonia) is a growing practice in apparel. This taps into growing awareness and propensity towards repairing products rather than replacing them https://www.patagonia.com/worn-wear-repairs/

STRATEGY: Increase Resource Intensity SECTOR: APPAREL Rentez Vous offer a user-oriented service that facilitates the short term rent of high-end clothing to consumers, who would otherwise be unable to afford them www.Rentez-vous.com

STRATEGY: Take Back SECTOR: CONSUMER ELECTRONICS HP’s Instant Ink uses WIFI to anticipate when new printer cartridges are required & posts them to the user for a low monthly fee (based on sheets printed) HP benefit from economies of scale: - larger, refillable ink cartridges - returned as part of the agreement (prepaid envelope) Consumer benefit from convenience: - of uninterrupted supply of ink - significantly lower cost vs traditional cartridges

STRATEGY: Prosumption SECTOR: FURNITURE

OPEN DESK • Connects consumers to local makers • Designers develop furniture designs that are hosted virtually • ‘Joe & Mary public’ can download the files – take to a maker space / pay to have designs made • Can facilitate local production / use of local materials • Contemporary trend towards personal-making leading to distributed production

Reflection on user / business model interactions…

Depending on how involved the user is required to be, circular business models typically require some form of behaviour change at different stages in the product journey… • Buy a specific printer • Pay monthly by DD • Make sure printer is attached to the internet • Fit new cartridges when they arrive • Return empty cartridges Each behaviour will influence the decision to engage in the service

The changes are minimal and there are a lot of advantages which users value… • Convenience • there when you need it • previous model – small cartridges which ran out frequently • Cost • £1.99-7.99 a month vs £60 a visit (could be monthly) • Saves behaviours • planning purchase • Executing purchase How to remind users that is an improvement on the old system…?

Challenges: it is not unusual for a westerner to own around 10 pairs of jeans at any one time - there are a number of challenges to a model which requires such commitment to one brand Leasing of products which one might expect to own for a number of years can drive prices above that of a once-off purchase

Multiple service contracts…

Is this desirable for users? Assumes rational purchasing behaviour…

• Strong emphasis on lifestyle brand products • Lack of focus on a range of socioeconomic factors/market segments https://www.tomcridland.com/collections/30yearcollection http://www.buymeonce.com/clothe

Emerging insights…

• Integrated review • Combining discrete areas of research to elaborate areas for integration • 400 articles -> circa 40 • Indexed on scopus • (B2C, consumer products, design relevance, as well as potential to elaborate on the issues) • Seed literature • Key literature in the area of sustainable behaviour, usercentred design

• Users are under-considered despite being central to (some) definitions of CBMs • Users are assumed to be passive receivers of business propositions • Multiple intervention opportunities for designers • Emerging set of design principles (e.g. communities of users, experience equivalence) • Design approaches overly aggregated within what are very divergent innovation strategies

• Some sectoral insights starting to emerge e.g. design for user hygiene needs in medical devices) • Need to build on existing knowledge on sectors • Approaches need to be disaggregated according to business models, sectors, products, markets • Luxury, premium, low-end... • Philosophies • Interdisciplinary perspectives (e.g. social practice theory, critical studies)

Conclusions and next steps…

Framing and values underlying the CE so that it is more inclusive of user/consumer needs and behaviours would open up greater opportunities for success. Need to know more about user/consumer attitudes towards alternative consumption models, to recognise the challenges of behaviour change and to understand what approaches are acceptable and even desirable Genuine needs there is arguably more opportunity to respond to societal issues that we face, that would have a very positive contribution to society beyond consumerism. Realistic understanding of how people prioritise purchasing decisions to avoid developing naïve business models which may not progress beyond pilot schemes, single line products or products that have poorly thought out requirements of users.

Nudie jeans repair service…

Shoreditch vs. local, affordable high-street repair