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The current textile industry is characterised by unsustainable business models. There is a need to transform the industry towards sufficiency – that is a textile industry where consumption is decreased to a level that is adequate and within planetary boundaries. Through a literature review and interviews with small Finnish textile companies, our research synthesizes previous research and provides new information about business practices that companies can employ to advance sufficiency as part of their everyday business. We found that companies have various activities that can enable, promote or inspire decreased consumption and sufficiency. Activities relate to six categories: (1) valuing quality over quantity, (2) enabling multiple product lives, (3) provision of support services, (4) encouraging and enabling doing-it-yourself, (5) ethics-motivated communication and interaction and (6) embracing locality. The activities connected to each strategy are manifold and context specific including, for example, permanent collections, not having discounts, repair service, quality and curated second-hand products and interaction with users during the use phase. It is important to note, however, that the studied sufficiency strategies come with rebound risks and companies should identify the best activities that fit their context and measure their impact. Changing the paradigm from fast fashion to sufficiency will not be an easy task and will require efforts from consumer citizens, decision makers and companies alike.
The current textile industry is characterised by unsustainable business models. There is a need to transform the industry towards sufficiency – that is a textile industry where consumption is decreased to a level that is adequate and within planetary boundaries. Through a literature review and interviews with small Finnish textile companies, our research synthesizes previous research and provides new information about business practices that companies can employ to advance sufficiency as part of their everyday business. We found that companies have various activities that can enable, promote or inspire decreased consumption and sufficiency. Activities relate to six categories: (1) valuing quality over quantity, (2) enabling multiple product lives, (3) provision of support services, (4) encouraging and enabling doing-it-yourself, (5) ethics-motivated communication and interaction and (6) embracing locality. The activities connected to each strategy are manifold and context specific including, for example, permanent collections, not having discounts, repair service, quality and curated second-hand products and interaction with users during the use phase. It is important to note, however, that the studied sufficiency strategies come with rebound risks and companies should identify the best activities that fit their context and measure their impact. Changing the paradigm from fast fashion to sufficiency will not be an easy task and will require efforts from consumer citizens, decision makers and companies alike.
IntroductionWith the much-needed transformation from linear to more circular resource flows, it is imperative for enterprises to understand their financial prospects. Transforming towards Product-as-a-Service (PaaS) with circular elements introduces new considerations that must be addressed to ensure profitability and sustainability. However, there is a lack of comprehensive financial assessments based on empirical cases to guide companies in assessing the lucrativeness of their transformations. This paper addresses this gap by proposing a simple-to-use and flexible financial assessment model for PaaS, helping practitioners identify the conditions necessary for financial viability from both provider and user perspectives.MethodsGrounded in transdisciplinary research, this study focuses on a construction machine manufacturer's transformation from a traditional one-off sales business model to PaaS. The transformation is analysed through the development of a life cycle costing financial assessment model that addresses relevant cost drivers.ResultsUsing discounting methods, the model can help practitioners generate scenarios to identify feasible solutions for profitable PaaS setups. Additionally, the paper presents an analytical procedure to identify conditions for a financially viable PaaS. The procedure includes scenario-based analysis that accounts for systemic changes often necessary for successfully realising PaaS.DiscussionBy following the proposed procedure, along with the financial assessment model, manufacturers can streamline their financial assessments to identify necessary changes. For the analysed case company, the modelling results indicate that it must redesign its products for PaaS to outperform its previous business model.
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