88 4 Case Description and Within-Case Analysis
has to be used for reusing and recycling old clothes. In the eyes of the interviewee,
implementing and running a company-own infrastructure to collect, disassemble
and recycle the products is too cost intense. The downside of using the proven
waste-disposal infrastructure is that the organization has no control nor insight
into what happens with their products at the end of their lifecycle. Consequently,
organizations have to buy recycled resources and make sure that those do not
contain any toxic or environmentally-harming substances. In addition, there is
the challenge of higher prices for recycled material in comparison to virgin ones.
A third challenge case Eta identified is limited options for substitutes to enableorganizations to create fully recyclable products. Substances used for production need
to be recyclable and of the same quality as conventional ones. Today, organizations
are very limited in their options for substitutes, as described in the following quote:
“... but the kind of material which is available, Cradle to Cradle certified, for yarns
and material which can be made out of it is limited to a certain product range“ (see
Appendix: German Quote 46).
Technological innovations are necessary to enhance the variety of colors, yarnsand other material used in the production process. To achieve this progress a
systems approach is necessary. Organizations within one industry have to coop-
erate with suppliers, e.g. the chemical industry to work on non-toxic dyer or with
governments to work on legislation in the countries of production as well as in the
country of the retailer.
A final challenge identified by case Eta is the lack of customer education. Amajority of consumers remain unaware of textile recycling and product life ex-
tension through second, third and fourth use. This led the organization in case
Eta to terminate its recyclable clothing line established in 1994. In order to change
customer behavior extensive customer education is necessary.
4.9.3 Economic Impacts
Case Eta identifies two economic impacts for the organization from the implemen-
tation of the circular economy.
The first is addressing new groups of customers through the circular economyactivities of the organization. Its long history of commitment to this topic enabled
the organization to build trust and create a certain brand image. This attracts not
only the ‘regular’ buyer but also customers that are specifically interested in the
‘sustainable type of business’ the organization is aspiring to become. According to
the company’s representative, the organization “not only created a brand image where
the organization was seen as leading on this issue in the market but also acquired new