4.6 Case Delta 75
75
if we leave them ‘untouched’ e.g. without any color. This would be a major limitation
for us and that is the reason why I think that the technical cycle might be difficult
to implement” (see Appendix: German Quote 24). Only neutral, undyed fiber can
enter the technical cycle in order to be refurbished and reused. Hence, the current
limitation is that to ensure a circulatable product only undyed fabric can be sold
which doesn’t seem to be appreciated by the customer.
4.6.4 Economic Impacts
The first effect is the satisfaction of customer needs. Sustainability and especially
circularity are important issues for customers in the business to business environ-
ment. For business customers there are three basic aspects which are important in
their buying decision: price, quality and further functionalities. Circularity is part
of the category ‘other functionalities’ and thus is one of the main decision criteria
for business customers. Hence, only by offering products with special characteris-
tics such as biodegradability or a Cradle-to-Cradle certification are the customers’
needs satisfied. The interviewee describes it as follows: “In the business to business
context price is an important aspect in the buying decision but also quality and other
functionalities are taken into consideration, e.g. sustainability plays an important
role” (see Appendix: German Quote 25).
A second economic effect is the competitive advantage. The organization is afirst mover within its industry and therefore the biodegradability of its products is
a unique characteristic. A product which is biodegradable and can be composted
without producing any harmful residues for the environment is also a product
without any health-damaging ingredients or pollutants for the customer.
Summing up, this organization has to make some decisions, which are whetheror not to take their circular economy fabrics from niche to mass market or end its
commitment due to a lack of customers. The main challenge is the higher costs
of circulatable resource prices. This challenge has to be resolved in order for case
Delta to continue its commitment to circular economy. However, the organization is
dedicated to finding a way to further increase its commitment to circular economy,
as is evident in this statement: “I can tell you the market has no mercy. But right
now I strongly believe that there is a place for us in the market. With our size we will
find the right place in the market and we will reach this place within the next one or
two years” (see Appendix: German Quote 26).