ProjectBusiness model innovation for closed-loop furniture flows - stage II

Application Areas
Business model innovation for closed-loop furniture flows - stage II

There is currently a great interest among public and private customers in reusing furniture. There is,
however, a lack of actors that can offer large-scale circular product offerings which are suitable for
large public and private organisations. Existing solutions are limited and tend to focus on smaller
actors, where the availability and condition of reusable furniture varies broadly. Increased
competition from low-cost rivals; stricter environmental and procurement requirements; and a
growing market for second-hand sales from third-party actors raises challenges for Swedish
furniture producers. Despite a growing number of eco-labels and gains in production efficiency, there
is a huge untapped potential for resource efficiency gains that can be achieved via increased
furniture reuse and refurbishment. Reuse/refurbishment of furniture (e.g. remanufacturing a
standard desk and office chair to double their lifespans) can lower CO2 emissions by 36-45% and
reduce the amount of materials and chemicals used in production.
This resource efficiency potential can be realised via circular business models, but requires financial
incentives for actors in the value chain to promote the maintenance, reuse, refurbishment and, as a
last resort, recycling of furniture.

Our collaborative project in stage II aims to boost Swedish furniture producers´ competitiveness and
contribute to a green growth by:
1: Identifying and mapping business and environmental opportunities via business models with
customer offerings based on reuse, cost-effective upgrading and renovation.
2: Developing innovative concepts for product customisation, logistics and information services, etc.

Viktoria Swedish ICT is responsible for three workpackages; business modelling, product design for remanufacturing and return logistics.