The Role of Product Design in Creating Circular Business Models: A Case Study on the Lease and Refurbishment of Baby Strollers

Abstract

In the transition to a circular economy companies are exploring new business models, implying a shift from selling products to offering products in circular business models, such as leasing. Product design is thought to play a crucial role in enabling this. Having a robust overview of relevant design roles and competencies is of foundational importance for the development of circular design tools and methods, and for the development of circular economy-based design curricula in higher education. However, how the role of design and the competencies required by designers need to change has hardly been investigated. Building on insights from literature regarding competencies of designers required to consider sustainability, sustainable design, and circular design, we developed a framework in which these competencies are related to the functional, coordinating, and strategic roles that have been recognized within the literature for designers. To complement the results from the literature with insights from practice, a single longitudinal in-depth case study was carried out describing a lease and refurbishment pilot conducted by a Dutch design-driven manufacturer of baby strollers. This case study allowed verification of the literature regarding the functional and coordinating roles of the designer. In addition, we were able to fill the gap observed in the literature regarding the strategic role product designers can assume when designing offers for circular business models. The competencies that we found are (1) the ability to concurrently develop the circular business model and the product's design and (2) the ability to anticipate how the circular offering will evolve over multiple lifecycles. These findings have been used to expand the framework.2 of 15 to give manufacturers control over their products over the life cycle and result in reliable product return rates. This would facilitate the recovery of the value embedded in products [4]. Hence, the shift from selling products to providing access-based payment models is considered an important business model for a circular economy. Product design then also includes the design of the associated service.Product design's role in shaping a circular economy is often described as pivotal. The Ellen MacArthur Foundation, for instance, states: "At its core, a circular economy aims to 'design out' waste. Waste does not exist-products are designed and optimised for a cycle of disassembly and reuse" [4] (p. 7). In a similar vein, Thomas argues "Design will play a key role in the transition to a circular economy" [5]. This sentiment is echoed by the European Commission, for instance, in their recent European Strategy for Plastics in a Circular Economy: " . . . where the design and production of plastics and plastic products fully respect reuse, repair and recycling needs and more sustainable materials are developed and promoted" [6] (p. 5).In spite of the widespread recognition of the importance of design in a circular economy, there is very little empirical research into the...

Circular Economy Competencies for Design

“…Circular Business Models and Circular User Engagement can be categorized as strategic competencies as these both aim at interventions at the business strategy level. The strategic competency "Circular Business Models" was identified in previous work before based on a single case study [28]. There was suggested that designers need to get more proficient in business model development.…”

“…In the context of design for a circular economy, literature mentions the ability to design for multiple use cycles [28,29]. We consider this an anticipatory competency as it requires designers to develop a design that is "futureproof" and can be used during multiple cycles.…”

“…In the context of design for circular economy, literature mentions competencies related to estimating environmental impact over multiple use cycles [28,29]. Den Hollander et al [33] mention that designers, when aiming to extend product lifetime, need to be able to assess the environmental consequences of their design interventions.…”

“…In the context of design for circular economy, literature mentions competencies related to concurrently developing circular business models and product designs [28]. Den Hollander et al [33] also suggest that design for a circular economy requires that products and business models that can capture economic value over multiple use cycles are designed simultaneously.…”

“…In the context of design for circular economy, the literature mentions the need to facilitate collaboration between stakeholders in an entire value chain or value network [28,41]. This can be categorized as an interpersonal competency as it reflects the need to identify and form partnerships.…”