TRIBUNE - Towards a circular economy

4 min

On 01 May 2024 by Benoit Prigent

TRIBUNE - Towards a circular economy

The article in a nutshell

Opinion column - Published on January 5, 2024 in Stratégies, and submitted by Raphaël Masbou (Lokki), Mickaël Braconnier (Dealt) and Gautier Feld (CircularX). In the face of economic, social and environmental crises, more and more companies are reinventing themselves by adopting circular and service models. Rental, repair, second life: these alternatives are shaping a future that is more resilient, sustainable and in tune with consumer expectations.

Summary

Between the need to preserve their existing models and the threat of potential crises, companies must be protagonists of change if they are to survive and prosper.

Covid, inflation, climate emergencies, the materials crisis, wars and fractures... In recent years, current events have shaken our economic structures to the core, highlighting the fragility of the traditional linear model. This model, which is heavily dependent on raw materials, energy, imports and the stability of consumer purchasing power, is ultimately proving to be less than resilient.

In the textile industry, for example, the emergence of low-cost players, combined with the lack of adaptation on the part of traditional retailers, has signed the death warrant for many historic brands. Companies that fail to adapt to this new reality will suffer further or perish.

And that's exactly what the French want. Eight out of ten (83%) want change. According to Ademe, more than half would like to see a partial overhaul of the model, giving priority to reuse, repair, recycling and shared services.

Aligning offerings with consumers' real needs

Conversely, many companies have already embraced sustainability (circular model, repair, second life, rental, maintenance), demonstrating the resilience of their new positioning in the face of adversity. It is therefore imperative for retail players to direct their efforts towards reasoned, responsible products and services, but also to better align their offerings with consumers' real needs, to make low-cost, whose deleterious impact on the planet is well known, a thing of the past.

This transformation should contribute to the creation of a new imaginary around consumption, strengthening loyalty and attracting new customers.

Among the solutions adopted by the most resilient retailers, circular and service models stand out. Patagonia and Decathlon, to name but a few, are successfully extending their repair and rental offers, meeting strong consumer expectations while respecting economic and ecological imperatives.

The way forward for a sustainable future

Circularity is not just a trend, but the way forward for a sustainable future. It meets the expectations of consumers and the economic imperatives of businesses, while preserving our planet.

A recent report on circular VAT recommends lowering VAT rates on the repair of clothing, household appliances and bicycles from 2024. The authors believe that this measure should generate tax revenues, reinforcing the movement towards a more circular economy. It should be remembered that between 2022 and 2030, France needs to get rid of 16 million tonnes of CO2 every year, i.e. a reduction of 4.7% per year, whereas it has only eliminated half of this since 2010, according to the Haut conseil pour le climat, in its annual report.

Companies engaged in this fight against overconsumption are shaping the future, positioning themselves not only as economic players, but also as architects of change.

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