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will benefit from it [engaging in circular economy]“ (see Appendix: German Quote
36). As one of the first companies in the industry to invest in it, several advantages
are gained, such as know-how advantage, technological advantage and trustful
partnerships with required suppliers.
The third driver is the expected benefit of price stability particularly for pricevariations in the cotton industry. The interview partner expressed an expectation
to obtain some measure of stability by using recycled resources. Bearing the future
development of prices in mind, the usage of recycled material might even avoid
future price instabilities, as stated here: “On the other hand when we look at the
increasing prices of cotton: I think it was two or three years ago when prices for cotton
doubled therefore it is in our own interest to look for alternatives such as secondary
resources or recycled resources to gain price stability and to try to avoid an increase
in prices” (see Appendix: German Quote 37).
4.8.3 Challenges for the Implementation
One major challenge for case Zeta is technological limitations that don’t allow for
certain materials to be kept in a cycle without losing their quality. This is the case
for dyed polyester. Polyester itself can be recycled without losing its quality but as
soon as it is dyed it is almost impossible to get it neutral or white. The interviewee
explains this challenge as follows: “Currently we are not able to introduce polyester
into the cycle of material. In theory, it is possible but we have difficulties with coloring.
It is impossible to whiten dyed polyester” (see Appendix: German Quote 38).
The next challenge for the organization is lack of customer education. The ma-jority of customers do not know about the advantages of circular economy products.
The experiences of case Zeta show that the main factors influencing customers when
deciding to purchase a product are price and design. Sustainability features are seen
as add-ons but only if the price and design of the product meet the expectations of
the customer. Only a minority of customers buy products based on their sustain-
ability features. Hence, customers need to be made aware of the additional benefits
of circular products. “On the other hand our research shows that design and price
are the main criteria in the buying decision. Sustainability or recycled resources are
only valued as add-ons but never as main criterion for mainstream customers” (see
Appendix: German Quote 39).
Another economic challenge is the high expenses incurred in the recycling ofproducts. It is expensive for organizations to collect worn out apparel and then to
sort it according to what condition it is in before shipping it to recycling companies
which are located mainly in Asia. The financial costs of the process mean that it is