Post by account_disabled on Mar 5, 2024 12:24:33 GMT 8
As new market research and insights from edie have discovered , they claim that companies using circular economy models such as recharging, reselling and repair generate, on average, 32% more revenue than their traditional competitors.
Conducted by global consulting firm Kearney , the analysis is based on a survey of 150 companies globally in sectors including consumer-facing and B2B retail.
51 of these companies were classified as circular economy “leaders,” meaning their core business model is non-linear or they have recently significantly expanded their offerings in this space.
When comparing these 51 companies to the broader group, their revenues were, on average, 32% higher comparatively. They also revealed an average 38% increase in cost savings.
Graphics. Circular economy companies outperform traditional ones
Significant improvements
Companies in this group that had recently Chile Mobile Number List switched to circular products and models reported an improvement of 6% or more in their overall business activities. Most respondents attributed this to growing consumer demand for sustainable products and services.
On average, members of the 51-member leadership cohort experienced 50% more customer loyalty and 70% more brand recognition.
Environmental groups have repeatedly warned that linear business models carry long-term risks in terms of climate change, biodiversity loss and resource scarcity. On the latter, Circle Economy research concluded that only 9% of the 100 billion tons of virgin materials extracted annually are reused or recycled.
Now, Kearney warns that companies that don't adapt to these trends will lose customer and investor support in the short term.
The report explains it clearly: the benefits of adopting a circular strategy are not only environmental.
In the Fourth Industrial Age, it pays to be sustainable and those who persist in an unsustainable “take-make-waste” economy will inevitably begin to be left behind.
Yelena Ageveva-Furman, partner at Kearney
Circular success stories
Among the circular economy “leaders” surveyed by Kearney is the world’s largest furniture company, Ikea. Ikea strives to design products using only renewable and recycled materials by 2030 , as part of a broader “net positive” strategy, and according to its latest sustainability report, it has applied circular design principles to 80% of product lines to date. global level.
Away from the design and manufacturing part of the product life cycle, Ikea offers various return schemes where furniture is recycled or repurchased and then resold at a discount. The retailer is partnering with the Ellen MacArthur Foundation to help incorporate more circular principles and models at all stages of the product lifecycle.
Elsewhere, fashion rental company By Rotation doubled its members in just six months during 2020, and also saw a 130% increase in listings.
Retail giants such as Selfridges and H&M have taken notice and are trialling leasing in their flagship stores.
Analysts at GlobalData have predicted that the UK fashion rental market will be almost six times larger in 2029 than in 2019.
H&M. Circular economy companies outperform traditional ones
And of course, one of the most popular circular business models is recharging. TerraCycle's Loop was recently launched in the UK through Tesco, following successful rollouts in the US and France.
CEO Tom Szaky recently told edie that interest levels are now similar to pre-pandemic levels, when one brand a day would be registered. Similarly, Marks & Spencer has expanded its own grocery refill offer in recent weeks.
Conducted by global consulting firm Kearney , the analysis is based on a survey of 150 companies globally in sectors including consumer-facing and B2B retail.
51 of these companies were classified as circular economy “leaders,” meaning their core business model is non-linear or they have recently significantly expanded their offerings in this space.
When comparing these 51 companies to the broader group, their revenues were, on average, 32% higher comparatively. They also revealed an average 38% increase in cost savings.
Graphics. Circular economy companies outperform traditional ones
Significant improvements
Companies in this group that had recently Chile Mobile Number List switched to circular products and models reported an improvement of 6% or more in their overall business activities. Most respondents attributed this to growing consumer demand for sustainable products and services.
On average, members of the 51-member leadership cohort experienced 50% more customer loyalty and 70% more brand recognition.
Environmental groups have repeatedly warned that linear business models carry long-term risks in terms of climate change, biodiversity loss and resource scarcity. On the latter, Circle Economy research concluded that only 9% of the 100 billion tons of virgin materials extracted annually are reused or recycled.
Now, Kearney warns that companies that don't adapt to these trends will lose customer and investor support in the short term.
The report explains it clearly: the benefits of adopting a circular strategy are not only environmental.
In the Fourth Industrial Age, it pays to be sustainable and those who persist in an unsustainable “take-make-waste” economy will inevitably begin to be left behind.
Yelena Ageveva-Furman, partner at Kearney
Circular success stories
Among the circular economy “leaders” surveyed by Kearney is the world’s largest furniture company, Ikea. Ikea strives to design products using only renewable and recycled materials by 2030 , as part of a broader “net positive” strategy, and according to its latest sustainability report, it has applied circular design principles to 80% of product lines to date. global level.
Away from the design and manufacturing part of the product life cycle, Ikea offers various return schemes where furniture is recycled or repurchased and then resold at a discount. The retailer is partnering with the Ellen MacArthur Foundation to help incorporate more circular principles and models at all stages of the product lifecycle.
Elsewhere, fashion rental company By Rotation doubled its members in just six months during 2020, and also saw a 130% increase in listings.
Retail giants such as Selfridges and H&M have taken notice and are trialling leasing in their flagship stores.
Analysts at GlobalData have predicted that the UK fashion rental market will be almost six times larger in 2029 than in 2019.
H&M. Circular economy companies outperform traditional ones
And of course, one of the most popular circular business models is recharging. TerraCycle's Loop was recently launched in the UK through Tesco, following successful rollouts in the US and France.
CEO Tom Szaky recently told edie that interest levels are now similar to pre-pandemic levels, when one brand a day would be registered. Similarly, Marks & Spencer has expanded its own grocery refill offer in recent weeks.