BUGABOO

Bugaboo International, a Dutch company renowned for developing and producing innovative mobility products, notably the world’s first modular baby stroller, has long been committed to circularity. Operating in over 50 countries with a global workforce of over 1,400, Bugaboo has consistently strived to design durable products with the potential for multiple use cycles, facilitated by second-hand markets, readily available spare parts, and customer services. However, recognizing the evolving landscape of consumer preferences and environmental concerns, Bugaboo actively sought to explore and implement alternative business models to further its circular economy ambitions. This case study examines Bugaboo’s circular economy journey, focusing on their participation in the ResCoM project and the insights gained from piloting the “Flex Plan” leasing program and considering a “certified refurbished scheme.

THE CIRCULARITY CONTEXT: Prior to the ResCoM project, Bugaboo products were already designed with circularity in mind:

• Durability: Products are engineered for extended lifespan and multiple uses.
• Repairability: Easy access to spare parts and customer service support simplify repairs.
• Second-Hand Market: Designs facilitate second-hand usage, extending the product lifecycle.

Despite these existing circular design elements, Bugaboo identified potential opportunities for further enhancing its sustainability efforts, particularly in the realm of alternative business models such as leasing and remanufacturing.

The ResCoM Project and the “FLEX PLAN” Pilot: Bugaboo joined the ResCoM (Resource Conservative Manufacturing) project to explore and trial a small-scale pilot for its “Flex Plan,” a leasing package for new strollers. The project also investigated the business case for a “certified refurbished scheme,” where used strollers are restored to like-new condition, certified, and sold as “Bugaboo approved” refurbished products.The “Flex Plan” aimed to provide customers with the flexibility to change their stroller model and accessories according to their changing lifestyles and needs. Customers could lease a stroller by paying a deposit and a monthly fixed fee. The pilot project revealed several key questions and barriers:

• Reverse Logistics: Establishing an efficient system for collecting returned strollers.
• Tracking: Monitoring and managing the movement of products in the leasing cycle.
• Regulatory Compliance: Ensuring that refurbished products meet all relevant safety and quality standards.
• Design Optimization: Tailoring designs for leasing and refurbishment to facilitate disassembly and component reuse.
• Financial Feasibility: Comparing the financial performance of the leasing model against the existing sales model.

The pilot, involving approximately 50 customers, provided valuable insights into the potential of expanding into new market segments not currently targeted by Bugaboo. Participants were primarily motivated by the opportunity to access a high-end stroller without the significant upfront cost, along with the benefits of product switching, perceived sustainability, and service convenience.

Leveraging ResCoM Tools for Circular Design: Bugaboo effectively utilized a range of ResCoM tools to enhance the circularity of its products:

• Circularity Calculator and Multimethod Simulation Tool: These tools were employed during the early design stages to compare alternative circular scenarios, providing quantitative data such as potential material volume savings and the breakeven points of various strategies. Bugaboo found the Circularity Calculator particularly useful for designers, engineers, and product marketers, offering a clear overview of how different drivers impact cash flow and material flows.
• MI:Web BoM Analyzer: This tool provided insights into the environmental performance of various material selections, while the Analytical Tool was used to assess the potential profitability of different designs. One surprising finding was that the most profitable scenario involved customers using the stroller for two years and then keeping it, allowing Bugaboo to retain the deposit. This contradicted the core aim of offering a new business model that aligned with the philosophy of “products designed to last.” This outcome was attributed to Bugaboo’s lack of optimization as a service provider, reverse logistics provider, and refurbisher of strollers.
• Part Planning and Reman Design Checklist: This resource helped Bugaboo identify components that could be easily carried over across different designs, promoting modularity and streamlining the remanufacturing process.

However, Bugaboo recognized the importance of balancing attractive design with durability. Modular components, while facilitating remanufacturing, might compromise the strength and sturdiness required for strollers offered under the Flex Plan.

CHALLENGES AND LESSONS LEARNED: The ResCoM pilot highlighted numerous challenges that needed to be addressed to fully capitalize on the leasing model:

• Non-Technical Aspects: Administrative tasks, such as credit checks and managing monthly fee collections, added complexity.
• Refurbishment and Transportation Costs: Offering customers the ability to switch strollers required efficient methods for managing refurbishment and transportation costs.
• Product Care: Leased strollers were often treated with less care compared to owned products, leading to damage even after a short period, despite the deposit. The strollers were sometimes damaged after only a few months, despite customers paying a deposit of EUR 200 compared to ownership scenarios, where products are expected to be used by two to three families.

FUTURE DIRECTIONS: Despite the challenges encountered, Bugaboo remains optimistic about the potential of the leasing model and has gained valuable insights from the ResCoM project. The company plans to utilize the outcomes of the Flex Plan pilot to further refine the offer, reduce costs, and minimize the greenhouse gas impact. Bugaboo is committed to continuing its efforts to develop “products to last” by exploring ways to further optimize its offer, bring down costs, and reduce its environmental footprint. This includes seeking ways to improve both the business model and product durability.

Bugaboo’s participation in the ResCoM project and the piloting of the “Flex Plan” exemplify its commitment to circularity and sustainable business practices. The project provided invaluable insights into the complexities of implementing alternative business models such as leasing and remanufacturing. By leveraging ResCoM tools and carefully analyzing the results of its pilot program, Bugaboo is well-positioned to refine its strategies and continue its journey toward a more circular and sustainable future. Bugaboo’s experiences serve as a valuable case study for other companies seeking to embrace circular economy principles and develop innovative business models that reduce environmental impact while meeting evolving consumer needs.