RE-Commerce and the Circular Economy
It's not just recycling anymore
(image from the National Institute of Standards and Technology)
Eleven years ago Andy Ruben started Trove, a company that helps other companies with RE-commerce. RE-commerce is refurbishing and reselling products and is central to the circular commerce philosophy. If you haven’t bought anything from Patagonia’s Worn Wear store – you really should try it.
In a recent interview, Andy said that first there was Patagonia, then there were a handful of companies buying back their products, and this year Trove is helping over 100 companies including Levis, lululemon, Eileen Fisher, and REI that are embracing the circular commerce business. He says the next wave is luxury goods (think handbags) because they hold their value and are built well.
The car companies have been doing certified pre-owned cars ever since they figured out 50 years ago that taking control of the used car process was good for their brands. BMW has even gone so far as to put features in their cars that can be subscribed to. You can buy heated seats in your new BMW for $18 per month. It sounds ridiculous until you realize that the first owner may not want heated seats, and BMW can still sell the second owner on the feature.
In 2002, architect William McDonough published Cradle to Cradle: Remaking the Way We Make Things and launched his Cradle to Cradle design framework. McDonough’s process is part of the larger idea that every company should be responsible for the things they build for the entire lifecycle of the product.
Last week in my post about wind and hydro, we looked at how wind power turbines have gotten bigger and more efficient. So, what is to be done with the old blades? GE Renewables is taking them back, grinding them up, and using 90% of the material in the process of making cement.
Let’s all be on watch for companies that are taking responsibility for the entire lifecycle of their products.
Links and Resources
Patagonia Worn Wear store: https://wornwear.patagonia.com/
About Trove and Andy Ruben: https://www.greenbiz.com/article/episode-350-eu-vs-ira-recommerce-vs-e-commerce
About William McDonough: https://mcdonough.com/writings/cradle-cradle-remaking-way-make-things/
About BMW’s Subscriptions: https://www.repairerdrivennews.com/2022/07/13/bmw-begins-offering-vehicle-features-by-subscription-in-some-markets/
About Wind and Hydro:
About GE Renewables Blade Recycling: https://www.ge.com/news/press-releases/ge-renewable-energy-announces-us-blade-recycling-contract-with-veolia
Brands with re commerce: https://trove.com/brands-with-resale-buyback-programs/
NIST on the Circular Economy: https://www.nist.gov/circular-economy
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