Innovative circular fashion service based on online sales and returns (COTOUR)

Important results from the project

The project has aimed to reduce the environmental impact that H&Ms products have over the lifecycle of online sales. The goal has been to develop a return service for unwanted clothes where delivery shipment is used as a return channel. The developed return service has after tests shown customer acceptance and that it is logistically possible from a profitable point of view for the carrier, but the return service is not cost-neutral based on the current method of calculating transport costs, based on the measured return weights in the market test that turned out to be less than 8kg/shipment.

Expected long term effects

The project has developed new knowledge for H&M, Spring Global Mail and Viktoria Swedish ICT when it comes to: > The return service effect on the transport system > Consumers incentive to want to return the unwanted clothes > Indications on returned amounts > Indications on customer acceptance of the developed return service > Organizational aspects that affect a large-scale implementation > Different ways to collect clothing and textiles from Online Customers > Operators who can contribute to a continued development > Generalizability for other consumer product segments

Approach and implementation

For a large-scale implementation of the return service the organizational challenges needs to be considered for the ´service´ owner. Existing knowledge from the field of innovation and research indicates that if the existing business model in established businesses will change, it must be understood that the innovation challenge existing structures of the organization and the value chain. These structures must be identified and addressed. If not, the organization will prevent the implementation of the new business model.