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

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

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

  1. 1. Branding in the circular economy How brands will need to adapt to a new economic reality November 2014
  2. 2. Circular economy is a new systemic model
  3. 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. 4. The consumer / user has a pivotal position in circular economy
  5. 5. The consumer / user has a pivotal position in circular economy
  6. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 29. Implications for marketers Identity and desire Loyalty and reward Trust and transparency
  30. 30. Implications for marketers Identity and desire Loyalty and reward Trust and transparency
  31. 31. Implications for marketers Identity and desire Loyalty and reward Trust and transparency
  32. 32. 32
  33. 33. In summary The circular economy will change the way businesses interact with their audiences.
  34. 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. 35 Thank you n.liddell@dragonrouge.com ella.jamsin@ellenmacarthurfoundation.org © Dragon Rouge

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