Branding in the Circular Economy: How Brands Will Need to Adapt to a New Economic Reality

1. Branding in the circular
economy
How brands will need to adapt
to a new economic reality
November 2014

2. Circular economy is a new systemic model

3. Circular economy is a catalyst for new designs and business models
Design for disassembly.
Modular design.
Design for upgrade.
Repair and refurbish.
Product as service.
Dematerialised service.
Hire and leasing.
Incentivised return.
Remanufacture.

4. The consumer / user has a pivotal position in circular economy

5. The consumer / user has a pivotal position in circular economy

6. The consumer / user has a pivotal position in circular economy
So how much do people like the
models of circular economy?
And how to make sure people
do like these models?

7. Section A: Recruitment screener
Section B: Attitudes to consumption
Section C: Circular concept scenarios
Section D: Circular concept diagnostics
Section E: Awareness of alternative schemes
Section F: Attitudes & behaviours to sustainability
How can we
generate
interest in
circular
economy
models?

8. 8
5 Attitudinal segments
We identified 5
segments, based on a
combination of attitude
to consumption and
attitude to
sustainability.
Novelty
seekers
24%
Casually
conscious
consumers
19%
Progressive
purchasers
19%
Committed
caretakers
15%
Savvy
economisers
24%

9. Novelty seekers (24%)
Impulsive shoppers who tend not to worry about the social or
environmental impact of their behaviour.
Least likely to respond positively to messaging around ‘reuse
and recycling’. Preference for ownership.

10. Novelty seekers (24%)
Impulsive shoppers who tend not to worry about the social or
environmental impact of their behaviour.
Least likely to respond positively to messaging around ‘reuse
and recycling’. Preference for ownership.
“It’s easier just to buy
stuff.”

11. Novelty seekers (24%)
Impulsive shoppers who tend not to worry about the social or
environmental impact of their behaviour.
Least likely to respond positively to messaging around ‘reuse
and recycling’. Preference for ownership.
“And it’s easy to throw it
away as well.”

12. Novelty seekers (24%)
Impulsive shoppers who tend not to worry about the social or
environmental impact of their behaviour.
Least likely to respond positively to messaging around ‘reuse
and recycling’. Preference for ownership.
“I want a nice car, a big
house, nice clothes, go out
and have fun, have big
holidays and not worry
about money.”

13. Savvy economisers (24%)
Price-conscious people who prefer to make-do-and-mend
rather than spend.
Most suspicious of cost of circular schemes and least
interested in performance models.

14. “I’m happy with what’s
tried-and-trusted.”
Savvy economisers (24%)
Price-conscious people who prefer to make-do-and-mend
rather than spend.
Most suspicious of cost of circular schemes and least
interested in performance models.

15. “It sounds like brands are
trying to find new ways to
part me from my money.”
Savvy economisers (24%)
Price-conscious people who prefer to make-do-and-mend
rather than spend.
Most suspicious of cost of circular schemes and least
interested in performance models.

16. “I’m always keen to find
ways to get more from
what I’ve got.”
Savvy economisers (24%)
Price-conscious people who prefer to make-do-and-mend
rather than spend.
Most suspicious of cost of circular schemes and least
interested in performance models.

17. Casually conscious
consumers (19%)
Shoppers who are willing to pay more to
feel good about the products and services
they buy.
Most optimistic about cost and most open-minded
about using circular consumption
schemes.

18. “I’m interested in new
ways of doing things.”
Casually conscious
consumers (19%)
Shoppers who are willing to pay more to
feel good about the products and services
they buy.
Most optimistic about cost and most open-minded
about using circular consumption
schemes.

19. “I definitely regret some of
the things I’ve bought
in the past.”
Casually conscious
consumers (19%)
Shoppers who are willing to pay more to
feel good about the products and services
they buy.
Most optimistic about cost and most open-minded
about using circular consumption
schemes.

20. Progressive purchasers (19%)
People who try to buy in a way that balances
expressing their individuality with their
responsibility to society and the environment.
Most enthusiastic about take-back schemes,
particularly those with price incentives.

21. Progressive purchasers (19%)
People who try to buy in a way that balances
expressing their individuality with their
responsibility to society and the environment.
Most enthusiastic about take-back schemes,
particularly those with price incentives.
“I like things that are
original, meaningful,
unique and say something
about me.”

22. Progressive purchasers (19%)
People who try to buy in a way that balances
expressing their individuality with their
responsibility to society and the environment.
Most enthusiastic about take-back schemes,
particularly those with price incentives.
“I do a lot of research
before buying stuff.”

23. “I’m willing to put
in the effort.”
Progressive purchasers (19%)
People who try to buy in a way that balances
expressing their individuality with their
responsibility to society and the environment.
Most enthusiastic about take-back schemes,
particularly those with price incentives.

24. Committed caretakers (15%)
Discerning citizens driven by a concern for
social and environmental sustainability.
Most influenced by ethical and sustainable
messaging, particularly in relation to take-back
schemes.

25. “There’s more to life than
buying things.”
Committed caretakers (15%)
Discerning citizens driven by a concern for
social and environmental sustainability.
Most influenced by ethical and sustainable
messaging, particularly in relation to take-back
schemes.

26. “I want to know where my
stuff is going.”
Committed caretakers (15%)
Discerning citizens driven by a concern for
social and environmental sustainability.
Most influenced by ethical and sustainable
messaging, particularly in relation to take-back
schemes.

27. Committed caretakers (15%)
Discerning citizens driven by a concern for
social and environmental sustainability.
Most influenced by ethical and sustainable
messaging, particularly in relation to take-back
schemes.
“I’ll share with other people
if it’s the right thing to do.”

28. 28
Making circularity desirable
Committed
caretakers (15%)
Progressive
purchasers (19%)
Casually
conscious
consumers (19%)
Savvy
economisers
(24%)
Novelty seekers
(24%)
Make it easy.
Make it as fun as
buying stuff.
Help them to afford
having it all.
Price simply and
transparently.
Commit to a fixed
price over the long-term.
Help them to make
more from what
they already have.
Take away the pain
of low-interest
purchases.
Offer them
opportunities to
change and
upgrade.
Position new
models as clever,
novel initiatives
from familiar
brands.
Make it as original,
personal and
unique as possible.
Tell them a story.
Repay them with
social currency.
Show them where
things come from
and where they go.
Help them to get
more from other
people’s stuff.
Help them to foster
a community of
purpose.

29. Implications for marketers
Identity and desire
Loyalty and reward
Trust and transparency

30. Implications for marketers
Identity and desire
Loyalty and reward
Trust and transparency

31. Implications for marketers
Identity and desire
Loyalty and reward
Trust and transparency

32. 32

33. In summary
The circular economy will
change the way businesses
interact with their audiences.

34. In summary
The circular economy will
change the way businesses
interact with their audiences.
We are only just beginning to
scratch the surface in terms of
the implications for brands.

35. 35
Thank you
n.liddell@dragonrouge.com
ella.jamsin@ellenmacarthurfoundation.org
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