Business Models for Sustainable Consumption : Identifying and Overcoming Barriers to Rental and Reuse of Home Furnishings
Author
Summary, in English
It is widely recognised that society is consuming at levels and in ways that are unsustainable. Sustainable business models, broadly defined as those that consider economic, ecological and social value, hold promise for shifting consumption patterns. By facilitating activities such as rental and reuse, including second-hand, repair, refurbishment, and upcycling, they can help to provide more sustainable options for consumers to acquire, utilise and dispose of products. This, in turn, can extend product lifetimes, keep products from going to waste, and reduce the need for new production. Yet despite the potential of these business models, there are still relatively few of them in the business-to-consumer market.
This thesis aims to understand why we do not see more rental and reuse business models in practice, and how these models can become more prevalent. It does so by addressing two research questions: what barriers rental and reuse business models encounter, and how these barriers can be overcome. It focuses on the home furnishings sector, while also bringing in lessons from and for other consumer goods.
Through interviews with consumer goods rental companies, document analysis of company marketing materials, and a case study of Sweden’s pioneering reuse-based shopping mall, ReTuna, the thesis finds that rental and reuse business models encounter a number of barriers regarding finance and economics, product design, capabilities, relationships, consumers, and policy. Home furnishings pose particular challenges due to their bulky nature, wide range of products, and uncertainties regarding consumer use patterns. The thesis also finds strategies through which the barriers can be addressed, including reducing or eliminating the barriers directly through the design of the business models, involving other actors, associating new offerings with concepts that are already familiar to consumers, and outweighing or offsetting the barriers by emphasising added benefits. In addition, it suggests that consumer-related barriers regarding desire for ownership and hygiene concerns about not-new goods may not be as substantial as previous research would imply.
The findings in this thesis are relevant for researchers interested in understanding how business models that can facilitate sustainable consumption can become more prevalent, as well as for companies and other societal actors seeking or struggling to offer opportunities for rental and reuse of home furnishings and other consumer goods.
This thesis aims to understand why we do not see more rental and reuse business models in practice, and how these models can become more prevalent. It does so by addressing two research questions: what barriers rental and reuse business models encounter, and how these barriers can be overcome. It focuses on the home furnishings sector, while also bringing in lessons from and for other consumer goods.
Through interviews with consumer goods rental companies, document analysis of company marketing materials, and a case study of Sweden’s pioneering reuse-based shopping mall, ReTuna, the thesis finds that rental and reuse business models encounter a number of barriers regarding finance and economics, product design, capabilities, relationships, consumers, and policy. Home furnishings pose particular challenges due to their bulky nature, wide range of products, and uncertainties regarding consumer use patterns. The thesis also finds strategies through which the barriers can be addressed, including reducing or eliminating the barriers directly through the design of the business models, involving other actors, associating new offerings with concepts that are already familiar to consumers, and outweighing or offsetting the barriers by emphasising added benefits. In addition, it suggests that consumer-related barriers regarding desire for ownership and hygiene concerns about not-new goods may not be as substantial as previous research would imply.
The findings in this thesis are relevant for researchers interested in understanding how business models that can facilitate sustainable consumption can become more prevalent, as well as for companies and other societal actors seeking or struggling to offer opportunities for rental and reuse of home furnishings and other consumer goods.
Publishing year
2022
Language
English
Publication/Series
IIIEE Dissertations
Volume
2022
Issue
2
Full text
Document type
Dissertation
Publisher
International Institute for Industrial Environmental Economics, Lund University
Topic
- Social Sciences Interdisciplinary
Keywords
- sustainable consumption
- sustainable business model
- Product-Service System (PSS)
- rental
- reuse
- home furnishings
Status
Published
Project
- MISTRA Sustainable consumption - from niche to mainstream
Supervisor
ISBN/ISSN/Other
- ISSN: 1402-3016
- ISSN: 1402-3016
- ISBN: 978-91-87357-79-4
- ISBN: 978-91-87357-78-7
Defence date
30 September 2022
Defence time
13:00
Defence place
Lecture Hall Auditorium, International Institute for Industrial Environmental Economics (IIIEE), Tegnérsplatsen 4, Faculty of Engineering LTH, Lund University, Lund.
Opponent
- Giulia Calabretta (Associate Prof.)