The good and bad of products becoming services
Service models are taking over many industries.
You could buy Photoshop just 6 years ago. Today, it's exclusively a subscription.
DVDs can still be bought, but you likely buy movies through a streaming service. Although, you don't really buy these movies, you're purchasing a "Limited License" through Amazon and all of the others. What you buy is the ability to watch your movie on-demand. If Amazon were to go under, or lose the streaming rights to what you've "purchased," you would lose access.
SaaS is growing due to reduced costs, increased profit and increased efficiency for companies. But the drawback is that people don't really own the products they are paying for.
However, there is an opportunity in this trend to implement more sustainable practices.
Subscription models can support the idea of the Circular Economy, where companies rely on people to come back to their product or service. One example includes refill stations in European Lidl stores which use Algramo's innovative technology and implementation strategies.
Customers bring their used laundry detergent containers and refill them in the store. One, single store can save around 3,000 single-use plastic containers each year. To refill the refill stations, laundry detergent is shipped in bulk packages, so more product can be shipped with less packaging. Companies pay less for packaging which is reflected in lower product cost for consumers.
There's a ripple effect. The hard part about implementing more of these strategies lies in changing user behavior. So far, these designs appeal only to people who are already acting on sustainable practices. Slowly, the idea is spreading and gaining traction.
This shift has implications for designers. Subscription services can easily lead to overconsumption and waste. But by designing for a circular economy and pushing for better narratives, designers can play a key role in creating a more sustainable future.
There are a number of resources available to help designers learn more about designing for a circular economy. Some of the best places to start include:
IDEO has many blogs about this and sustainable design.
Cradle to Cradle by William McDonough and Michael Braungart is an essential book which has a free audiobook series on YouTube.
IBM has a plethora of information.
Circular Design Guide is a great hub for resources.
Eastman Chemical Company has great information, infographics and innovative materials.
Ellen MacArthur Foundation has great information and use cases.
The Carbon Almanac has great sustainability resources.