Concentrated, cold-water laundry detergent

In Europe, 43% of laundry washes are done at 40°C and 17% at 60°C or above, the average laundry washing temperature being 41°C. Reducing the wash temperature from 40°C to cold can reduce energy use by 50-65%. It seems that laundry detergent product innovations, campaigns to wash at lower temperatures, updated washing labels in clothing and the availability of more efficient washing machines have led to an increase in the number of cold washes in Europe. Washing at or below 30°C is on the rise: 32% of loads were washed at 30°C or colder in 2011 (up from 29% in 2008) (laundry data are retrieved from A.I.S.E., 2013).

The development of concentrated cold-water laundry detergent can be seen as a win-win-win business model innovation, because it provides opportunities and benefits for manufacturers (of laundry detergent and new more efficient washing machines), retailers, consumers and the environment.

 Win-win-win:

  • Manufacturer-win: reduced packaging and reduced cost. More products per shipping
  • Retailer-win: Less shelf space, because of concentrated products, more space for other products.
  • Consumer-win: Save cost (energy and water use) on low temperature washes, smaller bottles take up less space
  • Sustainability-win: energy and carbon emissions reductions in product use, packaging reduction which results in reduced resource use, customer education about climate change

 

Examples:

Examples of companies who have created or promoted concentrated cold-water laundry detergent include P&G (e.g. Tide, Ariel), Unilever (Small & Mighty) and Marks & Spencer.

 

The concept of win-win-win business models is introduced in the following article:

Bocken, N., Allwood, J. 2012. Strategies to reduce the carbon footprint of consumer goods by influencing stakeholders. Journal of Cleaner Production, 35, 118-129.  (Table 10 and Figure 3 include the win-win-win business models)

Second hand clothing collection and sales at retail

Consumers in the UK spend about £780 per head per year on textiles and clothing, which amounts to 2.15 million tonnes in total or 35kg per person, of which one-eight is sent for re-use through charities and the rest is discarded. This shows ample scope to keep clothes for longer and to make them available for reuse.

Innovative clothing retailers have started to offer consumers the opportunity to return second hand clothing to a store for new product discount vouchers (e.g. M&S) or asked consumers to pledge to make their products last as long as possible, keep them for longer and buy second hand. Patagonia now sells second hand clothing in its stores as well as through Ebay through their Common Threads initiative.

Win-win-win:

  • Manufacturer-win: Brand loyalty, potential to explore reuse of materials to make new garments or textiles products
  • Retailer-win: Generates traffic to stores and can induce more sales
  • Consumer-win: Affordability, feel-good factor
  • Sustainability-win: potential absolute reduction in raw material use through reuse, reductions in landfill, consumer education about reuse

 

Examples:

  • The Common Threads Partnership: reduce, reuse, recycle and reimagine
  • Shwopping: bringing old clothing items into an M&S store (even if not from M&S) each time you come to buy something new.

 

The concept of “win-win-win business models” is introduced in:

Bocken, N., Allwood, J. 2012. Strategies to reduce the carbon footprint of consumer goods by influencing stakeholders. Journal of Cleaner Production, 35, 118-129. http://www.sciencedirect.com/science/article/pii/S0959652612002545   (Table 10 and Figure 3 include the win-win-win business models)

Sharing business models and using overcapacity

Sharing business models are about using “ over-capacity” to a benefit. As the sharing platform Yerdle estimates, 80% of the things in our homes are used less than once a month, and self-storage has gone up 1,000% over the past 3 decades. The accumulation of unused stuff also happens outside the home: cars are typically used less than one hour a day and usually by just one person at a time (in the US). We seem to be accumulating a lot of stuff that is not being used. This makes the case for sharing rather than buying.

Under-used cars (Buzz car) and seats in cars (BlaBla car), flats (AirBnB) and beds in flats (couchsurfing) are now made available to other potential users through business models which charge a ‘use fee’. In this way, excess capacity can be used more effectively. Robin Chase (Zipcar) refers to ‘car sharing’ business models and even ‘bed sharing’ business models to describe these new business models.

Which sharing business model will be next?

 

Win-win-win:

  • New business-win: In the case of BlaBla car and Buzz car (car sharing and peer car rental) everyone can be an entrepreneur. It can make driving more affordable, or, in the case of car sharing, can make driving a more fun and social experience.
  • Incumbent business-win: Although existing businesses may suffer (e.g. the hotel industry from AirBnB) some who act quickly enough (e.g. Avis who bought Zipcar) can transition to new business model models in this way.
  • Consumer-win: Convenience, cost, environmental impact, socialising benefits.
  • Sustainability-win: use of overcapacity, better use of current resources, reduced need to use new resources (e.g. to build new cars, hotel rooms)

 

Examples:

 

The concept of “win-win-win business models” is introduced in the following article:

Bocken, N., Allwood, J. 2012. Strategies to reduce the carbon footprint of consumer goods by influencing stakeholders. Journal of Cleaner Production, 35, 118-129. 

Win-win-win sustainable business models

Cooperative strategies, where organisations bundle their expertise’s to create positive outcomes, are becoming more important to tackle sustainability challenges, which cross company boundaries. They are about creating synergies and ‘win-win’ situations.

‘Win-win-win’ sustainable business models create advantages to at least three different types of groups, for example, manufacturers, retailers and consumers, while positively contributing to the environment and society.

A few examples of win-win-win business models include: product refill business models, sharing business models, and more specifically, second-hand clothing collection and sales at retail, and concentrated cold-water laundry detergent.

Collaborative activities may include:

  • Manufacturers and retailers jointly develop and pilot test low carbon footprint business models such as refillable products.
  • Coordinated packaging and in-store promotions can educate consumers about their “win”. For example, store promotions can show the cost saving of reusing packaging. Manufacturers might print the environmental benefits of reusing packaging on the label.

 

Product refill business models in stores 

Product refill business models include packaged consumer products that can be directly refilled and reused after use and reduced-material refill pouches. There may be financial incentives, such as discounts on the next purchase or a free product after a certain number of refills, to stimulate packaging reuse.

In a broad sense, reusable grocery bags may be viewed as a “refill product”, especially when supermarkets give store credits to incentivise reuse.

Win-win-win:

  • Manufacturer-win: recurring customers, engagement with sustainability
  • Retailer-win: Generates traffic to the store, one successful refill model can pave the way for more refillable products
  • Consumer-win: may save cost, reduces waste, in some cases, allows consumers to (re)use the containers they prefer.
  • Sustainability-win: material reuse, waste reduction, consumer education

 

Examples:

Companies who have done this or still do this include: The BodyShop, WholeFoods (US Grocery store), Kiehl’s (premium skincare), Ecover (eco-cleaning), and “Unpackaged”, a UK ‘organic refill grocery’.

 

The concept of “win-win-win business models” is introduced in the following article:

Bocken, N., Allwood, J. 2012. Strategies to reduce the carbon footprint of consumer goods by influencing stakeholders. Journal of Cleaner Production, 35, 118-129.