How Brands can Commit to Circularity

IKEA Circular Value Chain Model 🌍 IKEA offers a clear example of how circularity can be embedded across a global value chain. Its approach moves beyond product-level improvements to a systemic shift in how materials are sourced, products are designed, services are structured, and end-of-life is managed. At the design stage, IKEA applies circular principles to ensure that products can be reused, repaired, remanufactured, or recycled. Internal guidelines and evaluation tools help teams integrate these requirements consistently across categories, aiming to extend product life and reduce waste. Materials are a major focus, as they account for a significant share of the company's overall environmental footprint. IKEA is increasing the use of renewable and recycled inputs and testing alternative materials to reduce dependency on virgin resources and fossil-based components. The company is also scaling services that enable customers to participate in circular practices. This includes expanding buy-back programs, resale initiatives, and spare parts availability, as well as improving product designs to simplify disassembly and repair. To support broader change, IKEA is involved in policy dialogue and cross-sector collaboration. Through its partnerships and platforms, the company is contributing to discussions on harmonized standards, recycled material markets, and waste infrastructure. As part of its long-term strategy, IKEA recently committed significant capital through its investment arm to strengthen recycling capabilities across key materials such as plastics, textiles, wood, and mattresses. This aims to address structural barriers and accelerate access to quality secondary materials. These investments are already supporting the development of closed-loop systems in several markets, while also contributing to emissions reductions and supply chain resilience. The focus is on building scalable infrastructure that aligns with IKEA’s circularity and climate goals. The IKEA Circular Value Chain Model reflects a strategic shift from ambition to execution. It provides a practical framework for operationalizing circularity at scale, grounded in product design, material innovation, customer engagement, and long-term investment. #sustainability #business #sustainable #esg

The Circularity Compass: Philips 🧭 Founded in 1891, Philips has transformed from a lighting company into a global health technology leader operating in over 100 countries with 80,000 employees. Their journey shows that even century-old multinationals can successfully pivot to circular business models. 🧭 Since beginning their circular transition in 2012, Philips has reached what we call a "systemic maturity level" - integrating circularity across all operations and governance structures. They've committed to ambitious 2025 targets: 🔳 25% of revenue from circular products and solutions 🔳 100% responsible take-back for professional medical equipment 🔳 All new products meeting EcoDesign requirements 🔳 Zero waste to landfill across operations 🔳 50% of suppliers committed to science-based targets 🧭 Their transformation hinged on three strategic elements: Starting with their WHY (competitive advantage, customer loyalty, cost savings). Developing an end-to-end circular strategy across five pillars (from design to end-of-use). Establishing "circular revenue" as their primary metric - a genius move that translated sustainability into financial language the business understood. The standout innovation? Their MRI SmartPath program allows hospitals to upgrade existing technology rather than replacing entire machines, saving substantial amounts of material, while reducing scan times and energy consumption. Inspired by Harald Tepper and the team for embedding a circular strategy across the entire ecosystem, with the customer at the centre. As Philips' circularity team puts it: “When aiming to optimise the value delivered to your customers and society while decreasing the required amount of materials, we know from experience that design, procurement, manufacturing, delivery, use phase, and eventually takeback and recirculation must also be considered.”

The EU’s new agreement on textile waste is a major step forward. While Extended Producer Responsibility (EPR) for textiles is new for many — France has had an EPR scheme in place since 2008! Now, with a unified approach across Europe, the industry is facing a long-overdue shift. The deal requires all textile producers—including ecommerce brands selling into the EU—to cover the costs of collecting, sorting, and recycling their products. And while some see this as a challenge, it’s just accountability catching up with reality. Fashion’s waste problem is massive—12.6 million tonnes annually in the EU alone—and brands need to be part of the solution. There’s also an important detail in the agreement: ultra-fast fashion business models will be taken into account when determining financial contributions under EPR. This could be a significant lever to change the economics of disposable fashion. For those in the industry, this raises a big question: Are we ready for a world where supply and demand for recycled materials no longer match up? With regulation ramping up, brands committing to circularity will soon find themselves competing for limited access to recycled fibers. Brands will have to choose if they will secure supply and be the heroes or fail to do so and pay penalties while being the villains of this transition? I encourage all to read more on the gap in the latest BCG and Fashion for Good collaboration. https://lnkd.in/e3M6PNdS This is where long-term planning matters. Investing in next-gen recycling, securing offtake agreements (to ensure your supply), and working closely with material innovators will be key to staying ahead. Big move for Europe, but also a moment for brands everywhere to rethink their role in the system. https://lnkd.in/e38hy33F

Only 10% of the 500,000 tons of flexible film generated annually in California finds a second life in today's end markets. So how do we prove that a scalable, circular system for this material type is actually possible? That’s the central question a new coalition of brands is seeking to answer. The recently launched U.S. Flexible Film Initiative (USFFI) goes beyond traditional grant funding for new equipment, which is often a one-time capital expense. Instead, they are directly addressing the "operational costs" that have long made flexible film an unattractive material for many recyclers. Member brands include General Mills, Mars, Mondelēz International, Nestlé, Hill's Pet Nutrition and PepsiCo. By offering multi-year contracts, they are helping to: 🟢 De-risk investment for MRFs and reclaimers by guaranteeing a revenue stream. 🟢 Create a consistent supply chain for flexible film bales, encouraging downstream market development. 🟢 Prove out a scalable model that could be replicated in other states with emerging EPR programs. We often talk about the circular economy in a grand, theoretical sense, but the reality is that its success hinges on solving very granular, unglamorous problems. --> How do you convince a facility to take on a low-value, difficult-to-sort material? --> How do you build a business case for a product that has no reliable buyer? The answer is by intentionally building the economic incentives, not just hoping they emerge. The USFFI’s work is a proactive, market-driven effort to change the status quo. It's a prime example of strategic sustainability in action—leveraging collective industry capital to solve a systemic challenge and build a new, circular market. This kind of pre-competitive collaboration is vital. Read more here: https://lnkd.in/gXCdKgdS #EPR #CircularEconomy #SustainablePackaging #WasteManagement #FlexiblePackaging

How Can Circularity Become Part of Your Business DNA? ➤ In today’s rapidly evolving market, embedding circularity into the DNA of your organization can set you ahead of the competition. But what does it really mean to embrace this shift, and how can it transform your business? ➤ Here’s how you can integrate circularity into your business DNA: 📌 Stay Ahead of Regulation: By adopting circular practices, you can stay ahead of potential regulations, positioning your company as a leader in sustainability. 📌 Save Money on Resources: Circular business models focus on reducing waste and reusing materials, leading to significant cost savings. 📌 Offer High Value to Customers: Customers today are more conscious than ever. Offering circular solutions can enhance your brand’s value and attract eco-conscious consumers. 📌 Create New Revenue Streams: Consider subscription models or service-based offerings. These can provide continuous revenue from existing products, as seen in the lighting company example. 📌 Leverage New Technologies: Embrace innovations that enable circular solutions, such as reverse supply chain logistics and bio-based material substitutions. → Think of a furniture company that traditionally sold products outright. By shifting to a subscription model, they offer customers the option to rent furniture, with services for maintenance, upgrades, and eventual recycling. This not only extends the product's lifecycle but also creates a steady revenue stream and appeals to a growing market of eco-conscious consumers. → What steps is your business taking to embed circularity into its DNA? #CircularEconomy #Sustainability #Innovation #BusinessTransformation #EcoFriendly #GreenInitiatives #CustomerEngagement #LeadershipInSustainability #PositiveChange

👀 𝗬𝗼𝘂𝗿 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝗱𝗼𝗻’𝘁 𝘄𝗮𝗻𝘁 𝗻𝗲𝘄𝗻𝗲𝘀𝘀. 𝗧𝗵𝗲𝘆 𝘄𝗮𝗻𝘁 𝘁𝗼 𝘀𝗵𝗼𝗽 𝗶𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝘁𝗹𝘆. 📈 Resale will grow 2–3× faster than first-hand fashion through 2027. 📈 In multiple markets, secondhand is scaling at double-digit growth while primary retail remains flat. 📈 70% of consumers reporting they now shop pre-owned to access brands they can’t justify at full price. 📈 60% of Gen Z perceive brands with official resale channels as “higher quality” and “more collectible. Platforms like Vestiaire Collective, The RealReal, and Vinted collectively surpassed 100M active users in 2025. ❗ 𝗧𝗵𝗶𝘀 𝘀𝗵𝗶𝗳𝘁𝘀 𝗰𝘂𝗹𝘁𝘂𝗿𝗮𝗹 𝗽𝗼𝘄𝗲𝗿 - 𝗮𝗻𝗱 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗽𝗼𝘄𝗲𝗿 - 𝗮𝘄𝗮𝘆 𝗳𝗿𝗼𝗺 𝗯𝗿𝗮𝗻𝗱𝘀 𝗮𝗻𝗱 𝘁𝗼𝘄𝗮𝗿𝗱 𝗺𝗮𝗿𝗸𝗲𝘁𝗽𝗹𝗮𝗰𝗲𝘀. But does your brand know how to play? Without cannibalizing itself? Well, here's what you need to do: 🔺 Build resale into your margin strategy (recommerce programs have shown up to 35% higher gross margins vs discounted new inventory) 🔺 Use recommerce to clean up product equity (with controlled resale reducing grey-market leakage and price erosion) 🔺 Stop treating “circularity” as sustainability, and start treating it as brand architecture The top conversion drivers reported globally? Affordability, rarity, and access to past-season pieces — with “sustainability” ranking 4th or 5th in most regions. ❗ 𝗥𝗲𝘀𝗮𝗹𝗲 𝗶𝘀 𝗯𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝗮 𝗹𝗼𝘆𝗮𝗹𝘁𝘆 𝗲𝗻𝗴𝗶𝗻𝗲, 𝗿𝗲𝘄𝗮𝗿𝗱𝗶𝗻𝗴 𝗯𝗼𝘁𝗵 𝘁𝗮𝘀𝘁𝗲 𝗮𝗻𝗱 𝗹𝗼𝗻𝗴𝗲𝘃𝗶𝘁𝘆. Early adopters like Patagonia, EILEEN FISHER, INC., lululemon and COS have seen resale customers convert to full-price customers at significantly higher rates, in some cases +30%. If you choose to ignore this, you won’t just lose revenue, but become irrelevant over time. Thoughts? Drop them below! 😍 _________ TNGE 𝙁𝙖𝙨𝙝𝙞𝙤𝙣 𝙞𝙨 𝙝𝙚𝙧𝙚! 𝙄𝙛 𝙮𝙤𝙪 𝙖𝙧𝙚 𝙖 𝙛𝙖𝙨𝙝𝙞𝙤𝙣 𝙗𝙧𝙖𝙣𝙙 𝙬𝙞𝙩𝙝 𝙖 𝙥𝙪𝙡𝙨𝙚 - 𝙘𝙤𝙣𝙣𝙚𝙘𝙩 𝙬𝙞𝙩𝙝 𝙪𝙨! #FashionIndustry #LuxuryFashion #FashionMarketing #BrandStrategy #StateOfFashion #FashionIndustry2026

𝟲𝟳% 𝗼𝗳 𝗯𝗿𝗮𝗻𝗱𝘀 𝘁𝗵𝗮𝘁 𝗼𝗳𝗳𝗲𝗿 𝗿𝗲𝘀𝗮𝗹𝗲 𝗮𝗰𝗾𝘂𝗶𝗿𝗲 𝗺𝗼𝗿𝗲 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀, 𝗮𝗻𝗱 𝟴𝟵% 𝗼𝗳 𝗯𝗿𝗮𝗻𝗱𝘀 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗶𝗻𝗴 𝗿𝗲𝘀𝗮𝗹𝗲 𝘀𝗲𝗲 𝗶𝘁 𝗮𝘀 𝗮 𝗴𝗿𝗼𝘄𝘁𝗵 𝗱𝗿𝗶𝘃𝗲𝗿. Circular business models are redefining strategy and customer relationships. Resale, repair, and upcycling do more than extend product life—they strengthen loyalty, reduce costs, and create new revenue streams. One of the best parts of my work is bringing innovators into the classroom at the University of Colorado. That's why I invited Arc'teryx Equipment and Alejandro Reinosa Buitrago to speak with my students how circularity creates value. ReBird is a masterclass in brand distinction—turning a small repair initiative into a strategic business advantage. What began as a pilot evolved into a global recommerce and repair strategy, strengthening customer relationships and reinforcing the brand’s commitment to durability. By making resale and repair more accessible, the company reduced costs, increased loyalty, and positioned its products as long-term investments. Circularity drives revenue while strengthening customer retention, attracting talent, and lowering barriers to entry—proving that rethinking ownership, durability, and customer engagement creates business value. 𝗧𝗮𝗸𝗲 𝗛𝗼𝗺𝗲 𝗠𝗲𝘀𝘀𝗮𝗴𝗲: 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿𝗶𝘁𝘆 𝗲𝘅𝗽𝗮𝗻𝗱𝘀 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀. 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗱𝗲𝘀𝗶𝗴𝗻𝗶𝗻𝗴 𝗳𝗼𝗿 𝗹𝗼𝗻𝗴𝗲𝘃𝗶𝘁𝘆 𝗮𝗻𝗱 𝗿𝗲𝘂𝘀𝗲 𝘀𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀, 𝗱𝗿𝗶𝘃𝗲 𝗴𝗿𝗼𝘄𝘁𝗵, 𝗮𝗻𝗱 𝗯𝘂𝗶𝗹𝗱 𝗺𝗼𝗿𝗲 𝗿𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝘁 𝗯𝗿𝗮𝗻𝗱𝘀. Parallel Labs #Circularity #Circularbusiness #CircularEconomy #BusinessStrategy #BrandInnovation #Resale #Recommerce #SustainableBusiness #CustomerLoyalty #FutureOfBusiness #GrowthStrategy  #BrandDistinction

🛍️ Department Stores Are Becoming Curators of Conscious Consumption From conciergerie services to dedicated “Re-” corners — department stores are reimagining what it means to serve today’s customer. A standout example? Reselfridges at Selfridges London — a concept that seamlessly integrates resale, rental, repair, refill, and recycling under one roof. It’s more than a corner; it’s a commitment to circular fashion and a redefinition of luxury through sustainability. 🔁 Why this matters: For customers: • Convenience: Having repair, resale, and rental services within the store means fewer steps between intention and action. • Empowerment: Customers can participate in sustainability without compromising style or experience. • Personalization: The conciergerie model adds a human touch — guiding shoppers through their “re” journey with tailored support. For brands and retailers: • Extended product lifecycle: A chance to extract more value from each item produced. • Deeper engagement: Building relationships not just at the point of sale, but across the full life of the product. • Differentiation: In a saturated market, circular services elevate the store’s role from seller to sustainable facilitator. ⚠️ Of course, challenges remain: • Operational complexity: Managing inventory, authentication, repairs, and rentals requires new capabilities and partners. • Brand alignment: Not all labels are ready to embrace second life strategies — especially in the luxury sector. • Customer education: Circularity still needs a strong narrative to be fully understood and adopted. Still, the shift is undeniable. Department stores are no longer just places to buy — they’re evolving into ecosystems of experience, care, and conscious choice. Have you come across inspiring “Re-” corners in Paris or elsewhere? Let’s exchange notes 👇 #RetailInnovation #CircularFashion #CustomerExperience #Reselfridges #DepartmentStores #SustainableLuxury #RetailStrategy #londonretail #topretailexpert #realretail #retailconsulting #selfridges