Article

Circular Business Models: Products that Last and Products that Flow

Sept. 14, 2022
CIRCONNECT partner

First, the distinction between Products that Last and Products that Flow. Products that Last are products that last for a long time such as phones, furniture and machines. We also call these products consumable products. Products that Flow, or consumables, are short-lived products intended to be used once or for a short period of time. Examples include packaging, disposables and some products in the fashion industry. There are several circular design strategies for these products. You can also apply the circular business models of Products that Flow to Products that Flow.

We distinguish 5 different circular business models:

  • Performance
    Also holds the responsibility in the hands of the provider, but there is a contract, based on the performance to be delivered. The provider determines which products are deployed to perform the desired tasks.
  • Intermediate
    Recovery: Facilitates take-back and collection systems to extract valuable materials from discarded products.
    Refurbish and Resell: Maintains and refurbishes product when needed and resells product for a second time.
    Repairing: Extends the functional life cycle of products through repairs and upgrades.
  • Access
    Based on making money by providing access to a product, while the access provider retains ownership. There is a time limit and products are used in turns.
  • Classic Durable
    Offers a high-quality product with longevity, with sales as the classic revenue source. Aftersales support contributes to the quality image.
  • Hybrid
    Operates by selling relatively inexpensive products with a short lifespan that work only in conjunction with a specially developed high-value product.

Watch the video explaining the circular business models for Products that Last here:

Watch the video explaining the circular business models applied to Products that Flow here:

These circular design business models are used in CIRCO's Tracks and Classes. These are training courses for companies and designers. These trainings also include the circular design strategies.

Learn more about CIRCO You go to a Dutch version

CIRCONNECT partner

CIRCO

The circular economy does not arise by itself. CIRCO (a program of TKI-CLICKNL) focuses on getting a new market moving. CIRCO therefore activates - with the support of the government - entrepreneurs and creative professionals to (re)design products, services and business models in order to then do circular business.

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Agenda

Regular events are organised around various circular design themes

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