A Circular Business Model for a Pregnancy Bra

Abstract

This report proposes a strategy to develop a circular business model for Feelou, a company that has worked on a sustainable pregnancy bra. The circular business model aims to improve the lifespan of the bra and reduce resource usage. This report consists of a research phase and a conceptualisation phase. The research phase explores the current industry and the challenges for the resource flows in the circular business model. The conceptualisation phase aims to solve the challenges that are found in the research phase, resulting in a roadmap for development of a circular business model.
The main challenges for a sustainable company in the current clothing industry are competing with greenwashing companies and finding sustainable alternatives for currently common practices, as the industry is a long way from becoming sustainable. Three paradoxes describe the dilemmas that Feelou faces in launching a circular business model for their bra.
Firstly, the Business model paradox shows that a sales model would be easier for Feelou and the customer. However, it would be less sustainable than a lease model, in which Feelou would keep ownership of the product. Secondly, the Perceived hygiene paradox is an important challenge for the reuse of bras: many women find pre-loved bras unappealing, however this is influenced by familiarity with the previous owner. Finally, the Circular impact paradox considers the scale versus quality of impact. Doing it perfectly mostly means doing it on a smaller scale, which affects overall impact. To grow, concessions need to be made.
The Butterfly Diagram (Ellen MacArthur Foundation, 2013) inspired the Resource flow diagram (RFD), a model that was used to explore possibilities for a circular business model. The analysis showed that Feelou should focus on the inner loops as this is where Feelou has a direct influence. The main challenge in the inner loops lies in the Perceived hygiene paradox. As a lease model creates many additional challenges, a sales model is pursued in the conceptualisation phase.
The conceptualisation phase started with a co-creation session with the target group. Many solutions were provided by the participants, noteworthy findings include: accompanying the product by a letter that describes the ideal life cycle of the bra, emphasising the value of sustainable behaviour as the reward itself and a focus on positive communication.
The RFD exploration and brainstorm provided enough material to fill in the service blueprint, providing an overview of the circular business model and its components. An interesting insight of the service blueprint is that Feelou can inspire customers to treat the bra sustainably on three different moments: during sale, during use and after use.

The business model canvas provided insight into the main challenge for the selection of the target group and value proposition: the dual focus on comfort and sustainability in the branding of Feelou. Further exploration through the brand DNA shows that this dual focus actually provides a competitive advantage. The comfort aspect focuses on the individual, while the sustainability aspect focuses on society and the planet, resulting in a branding strategy that is more resilient than comfort or sustainability alone would be.
The final deliverable, a roadmap helps to put all ideas and sides of the circular business model into perspective over time. It splits the development into the startup phase, the scale up phase and finally the ideal model. It provides a toolbox of resources that can be used to set up the circular business model and let it grow towards the next phase.