Towards digitalization of the circular economy in the furniture industry

Abstract

Fashionable, cheap furniture of questionable quality is often used for short-term economic gain. If the furniture is not liked, it is quickly discarded. The need to reduce CO2 emissions, dwindling resources and social and political demands contradict this practice and require the implementation of closed-loops material cycles and the introduction of circular business models. A systematic literature review and a case study were conducted to provide a comprehensive overview of current circular economy strategies (e.g. reuse, refurbishment and recycling) implemented in the furniture industry in relation to various key activities of platform companies. As part of the case study, interviews were conducted with stakeholders and experts from the furniture and interior design industry. The European Circular Economy Stakeholder Platform was also consulted. The literature review and the case study show that the furniture industry is in a state of transition. By incorporating designs that allow for improved remanufacturing, refurbishment and reuse, companies in the industry are increasingly starting to consider circular economy patterns. Increasing digitization and servitization are driving new circular business models. Another key finding is that digital platforms are suitable for connecting stakeholders such as manufacturers, service providers and consumers, taking into account the relevant business models. The study also identified motivations, barriers and requirements for the implementation of circular and digital business models in the furniture and interior design industry. There is still a large gap between what can be achieved with a circular economy and its actual implementation.