Closing the loop –Designing a subscription-based circular economy business model: A case study of a kitchen household appliances company

Abstract

Kitchen household appliances bear a great impact on the environment through both the production and use of the products. While great attention has been paid to theorising general models for adopting the circular economy, there remains research avenues in contextualising these within specific industries. To bridge the kitchen household appliance industry into the circular economy paradigm, the thesis aims to design a subscription-based circular economy business model. Furthermore, it explores how to construct the supply chains to enable the business model. This is performed through a case study of a company in the Benelux region. Laying the groundwork for the investigation, two studies were conducted. First, a literature study into circular economy business models (CEBM) with a particular focus on closing the supply chain. Second, an interview study was performed with management employees from the case company along with external industry and CEBM experts. Collectively, these represented the qualitative data that was subsequently used to answer the research questions. The empirical findings and ensuant results reveal a possible construction of a subscription-based CEBM, highlighting the interdependencies of the forward and reverse supply chain. The results furthermore display a need for new D2C channels and the targeting of three segments that showcase potential. Throughout the model, there is a recurring theme on the need for partnerships as an enabler of the model which stands in agreement with most circular economy research. The subsequent discussion delves deeper into the various views raised on the proposed model during both the interviews as well as in established research. In conclusion, the thesis contributes to closing the gap between theoretical CEBMs and industry related factors by providing a contextualised model for the kitchen household appliance industry.