The reasons why a circular plan might be the right choice for your company

Making your plan could be beneficial from a branding and financial standpoint. Instead of letting go of control and dividing revenues with a partner, it lets a business be in control of the program and enjoy higher margins when selling products.

The most ethical thing an organization can do for the planet is to make top-quality products that will last for years to ensure that customers do not need to purchase additional. In addition, it adds value to the brand when its customers can sell the same durable and timeless products. However, one of the most common mistakes when designing a Resale (or Recommerce) program is the fear of being too complicated from a legal, operational marketing, and sales standpoint.


Recommerce is an array of buzzwords like “circular economy,” “circularity,” and “circular systems” that have been increasingly utilized. Although it may seem a bit complex, don’t be scared. Circularity is the latest and more elegant version of “reduce reuse, reduce, recycle”,–which still holds today and is a vital step for preserving the planet. However, reducing, reusing, recycling, and reducing are frequently considered antithetical to the business’s growth.

If a buy-back or trade-in program is designed to prolong the lifespan of a product sales team may be worried that there will be no sales for new products. Operations teams might be worried about the added difficulty of returning gently used goods and the legalities and procedures to clean, inspect, repair, or reintroduce products to the market homepage. Marketing teams might be worried about how to identify and promote new products from those older ones giving them new life. It’s not as hard as it may sound and could be the beginning of establishing precedents and guidelines across sectors.


A circular product strategy starts by evaluating the products to determine their capacity to be recycled or reused and then establishing a clear understanding of whether this could be achieved internally or whether the company needs to partner with an outside organization. More and more companies offer repair, refurbishment, and recycling solutions to brands in the electronics, textiles, and food industries. A few examples are Tersus Solutions, Recology, Terracycle, California Safe Soils, Trex, and e-Cycle.

Establishing your program could be beneficial in terms of branding and financial viewpoint. Instead of surrendering control and sharing revenues with a partner, it gives a company the ability to be in control of the program and to enjoy greater margins when selling its products. By analyzing the best way to restore the product as authentic, ensuring their authenticity, inspecting the products, thoroughly cleaning them, and repairing products, many businesses have created their programs and set the stage for other companies to follow suit in their sectors. Examples include Apple and The LEGO Group, Ergobaby through its Everlove program, Target (car seats), Staples (electronics), Pet Pros, Coach, Stio and Mark Cross.

Start with a quality item (often that comes with a lifetime warranty) which can be passed on, and create a detailed outline of how the program differs from the latest and existing products. A team of all functions should develop the process to be outlined to demonstrate intake, examination (for authenticity security, authenticity, and the level of wear), as well as restoration (if required), cleaning, and outtakes for sale.

It is essential to have all functions involved to ensure that the procedure is smooth and complies with all legal and regulatory compliance rules and regulations. For the program’s ongoing success, marketing teams must be accountable for assisting with sales and marketing, just like they do for any other group of products. If executed right, this program will be a lasting impact.


Based on the Ellen MacArthur Foundation, a circular economy can cut 20% of the global greenhouse gas emissions to achieve the goal of zero net emissions in 2050. According to a McKinsey and Company report, in the clothing industry, circular strategies could result in approximately 143 million metric tons of GHG emissions reductions by 2030 and another 13 million tons for each percentage per cent growth of market share. Recommerce currently accounts for 7 per cent of the clothing market and is projected to increase to the level of 12% by 2030.

Making sure that products are used for longer can allow more quality products to be put in the hands of more people and creates greater acceptance across all socioeconomic groups. Accessibility to prices is generally the biggest win for sales and marketing since it will enable consumers to purchase high-end products that may not be typically within their budget.

Additionally, it’s an indication of the longevity of your product to customers who might not purchase the original version. It could even prevent customers from buying fake or fewer quality items solely based on cost.

The experience has shown that a re-commerce program doesn’t affect the sales of new products. Wholesale or retail customers have sustainability goals that they set themselves and are evaluating their suppliers on sustainability. Recommerce programs often align your business with the way your wholesale or retail customer is already doing and might even enhance that relationship.

Don’t be afraid to accept the positive change that comes from prolonging the lifespan of top-quality products. This is why several companies have not just implemented revolutionary changes within their sectors but are also continuing to increase top-line sales of new products, which shows you can benefit your company.

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