The drivers/demands/behaviours changing this area of retail
Environmental concerns are turning business models towards closed loop systems with repair, re-use, rental, recommerce and circular retailing becoming more commonplace. Renting a dress, refurbishing items for resale or turning old materials into something new seem straightforward from a sales perspective but operationally it’s a different matter.
The current state
The second-hand market (re-commerce) is booming. Where eBay began retailers are now bringing in greater control over their used products and in some cases incentivising customers to return old items to them. Awareness of the circular economy is growing and is being felt in retailers large and small as they adopt a fully circular model or take on parts of it to trial within the business.
- Control of branded products
- Reduced use of raw materials
- Less wastage and better for the environment
- The circular economy could increase EU GDP by an additional 0.5% by 2030 creating around 700,000 jobs
Discussion points in the podcast
How do you set up operations for re-commerce?
Where are the limits between reselling an item and disposal – and do you dispose of items responsibly?
How much of an existing product can be broken down and re-used or recycled into something else?
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Behind the microphones:
Ricky Wilson, VP Global eCommerce & Digital Operations at Pandora: https://www.linkedin.com/in/rickydwilson/
Steven Irwin, Director at Wolverine Worldwide:
Mike Hancox, CEO Yodel:
Katie Searles, Editor of DeliveryX:
Chris Hoskin, Regional Director of Marketing, EMEA at Narvar:
Ian Jindal, CEO RetailX: