The first set of strategies enables more use per user by, for instance, designing products to be physically and emotionally durable, providing services that support long-term use, and empowering users to use their products more and for a longer time.
The second set of strategies enables more users per product by, for example, providing a platform or service that facilitates the movement of products from user to user.
The third set of strategies enable users to go beyond physical products by using digital products and services.
According to Kia Egebæk, these strategies come into play when companies set up product service systems (PSS). In PSS models, products are sold as services, e.g., through renting, leasing and sharing. Thus, the producer retains ownership of the product, enabling more use per user, more users per product and – in rare cases – users to go beyond physical products.
Kia Egebæk stressed that according to a study done by McKinsey, 71% of consumers are interested in using more environmentally friendly consumption practices, including circular business models such as resale and rental and refurbishment. In addition, Kia referred to the Ellen MacArthur Foundation’s estimate that PSS has the potential to increase the use-rate of products from 25 to 45 uses.
Finally, Kia Egebæk emphasized that PSS – or circular business models in general – are no guarantee of a circular economy or reduction in environmental impact: It all depends on how the system is organized. On this topic, Kia suggested that companies focus on achieving at least one of four goals to ensure environmental gains compared to traditional linear business models: