How Vaude Innovates with ‘Product-As-a-Service Business Models’ @scp_centre#15CSCP#CircularTuesday How many times a year does one use a drilling machine, a backpack or a tent, if at all? Most likely, just a couple of times. Despite that, consumers spend a lot of money on products that, after sporadic use, are stored for most part of the year. The story of Vaude is an example of the potential of renting models and their multiple benefits for companies and customers alike. During the R2Pi project, the CSCP collaborated with the German clothing and outdoor company Vaude on a “Product-As-a-Service Business Model”. In one in-house strategy workshop with key participants of the relevant business units of Vaude, the CSCP set up a case study and discussed future products for Vaude’s iRentit business model. Vaude, a sustainability pioneer in the German market, aimed to further increase value for its customers. In achieving this, the CSCP and Vaude evaluated new possibilities to expand Vaude’s product portfolio for the ‘iRentit’ offering. This particular Circular Business Model, as applied in Vaude’s case, focuses on ‘Performance’ and ‘Access over Ownership’. These ‘Product-as-a-Service’ models allow customers to rent what they need for their temporary or particular use instead of a one-time purchase. This resonates positively with the increasing trend that customers value access over ownership. Moreover, they can try new products while saving money and storage space at home. ‘Product-as-a-Service’ models increase flexibility and ensure that resources and products are not wasted and find their way back into circulation. This enables companies to reduce their resource costs, become more resilient to global supply chain dynamics, and get a head start towards reaching the circularity goals set by the EU Green Deal. Additionally, this raises the incentives on the companies’ ends to provide stronger and better-performing products that maintain or even increase value over time. The workshop with Vaude was customised to the company’s specific needs focussing on understanding and setting the current ‘iRentit’ business model into context, and then, as a second step, innovating on new business model options in order to expand Vaude’s renting activities. During the EU funded Horizon 2020 project ‘R2Pi – The route to the Circular Economy’, the CSCP and its consortium partners had the opportunity to further develop a process that supports companies in creating a circular vision and engaging with the most relevant stakeholders on the way. If you are keen on learning more about our Circular Business Innovation journey please contact us. At the CSCP, we have a passion for circularity and look forward to collaborating with you in exploring your circular opportunities. For further details, please contact Alexander Mannweiler.