ProjectBusiness model innovation for closed-loop furniture flows - step III

Application Areas
Business model innovation for closed-loop furniture flows - step III

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.

 

The project ”Circular Furniture Flow step III ” will show how an industry can refocus towards a circular
economy. With new thinking concerning business relations and models we have proved in step
II that it is possible to combine competitiveness and sustainable development. Now we will
tear dow n the remaining obstacles so circular furniture flows will be an obvious as well as a
proud piece of the Swedish furniture industry.
The aim of the project is to meet the need in the society to better use all kinds of resources for
creating a more sustainable industrial development, by providing prerequisites for a more
effective and more environmental friendly production and consumption of public furniture.
Our vision is that Swedish furniture industry is recognized internationally to prove that circular
economy can be achieved.
Our solution is to take the sustainability work to the next level by creating circular flows and
new business models on an industrial scale.
W ehave the models, tools and work procedures from step II that we know are working.
Now the parties are gathering for implementation, demo sites and large scale change.

RISE Viktoria is - together with White Architects - responsible for the largest work package: Product and Market development.