Why are circular business models becoming a competitive advantage?

“We will all eventually need to move from linear to circular. Now is the time to act. Circularity isn’t a trend, it’s how you future-proof your business.”

This statement from NORNORM CEO and Founder Anders Jepsen captured the central theme of this year’s Circular Breakfast.

From customer relationships and cost efficiency to technology and scalability, the discussion explored how circular business models are already creating competitive advantage.

Moderated by Josefina Sallén from RISE Research Institutes of Sweden, the panel brought together perspectives from strategy, entrepreneurship, research, and circular business in practice, with:

• Nanna Gelebo, Managing Director and Partner at Boston Consulting Group
• Adrian McDonald, CEO of Epicenter
• Anders Jepsen, CEO and Founder of NORNORM
  

Together, they shared practical insights on how circular economy business models are moving from ambition to commercial reality.

One message was clear:

Circularity is no longer just about sustainability. It is becoming a better way to do business.

Circular models strengthen customer relationships and unlock long-term value

In traditional linear models, the relationship between company and customer often ends at the point of sale.

Circular models change that.

When products are returned, refurbished, and redeployed, the relationship continues - creating more touchpoints and new opportunities to deliver value over time.

As discussed during the panel, businesses implementing circular models often see increased customer lifetime value, driven by repeat engagement and ongoing service relationships.  

This applies across both:

• B2C models, such as resale and rental
• B2B models, such as subscription-based workplace solutions

Circularity shifts the focus from one-time transactions to long-term partnerships.

Circularity improves resource efficiency - and commercial performance

Circular models keep products and materials in use for longer, reducing waste and lowering the need for new production.

This delivers clear environmental benefits.

But importantly, it also delivers financial value.

By reducing material consumption and maximising product utilisation, businesses can improve cost efficiency and strengthen unit economics over time.

During the discussion, the panel highlighted the importance of viewing circularity not only as an environmental necessity, but also as a commercially stronger and more resilient model.  

This shift in perspective is critical for accelerating adoption.

Because ultimately, business models scale when they make economic sense.

Technology is what makes circular business models scalable today

While circular business models have existed for decades, they were historically difficult to scale efficiently.

Managing products across multiple lifecycles required operational capabilities that were difficult to achieve.

Today, that has changed.

Advances in:

• AI
• Asset tracking
• Product lifecycle data
• Digital platforms

make it possible to operate circular systems efficiently and at scale.

As highlighted during the panel, access to better data and technology enables companies to optimise utilisation, manage returns, and extend product lifecycles in ways that were not previously possible.  

What was once complex is now commercially viable.

The barriers are lower - and the opportunity is here now.

Circularity creates flexibility in an uncertain world

One of the key advantages of circular models is flexibility.

Businesses today operate in environments defined by constant change:

• growth and contraction
• evolving workforce needs
• shifting market conditions

Circular service models allow companies to adapt without being locked into ownership of assets that may no longer fit their needs.

This flexibility reduces risk and makes organisations more resilient.

It also enables faster decision-making and more efficient use of capital.

Circularity must be built as a core business model - and given time

One of the most important lessons from the Circular Breakfast was that circularity cannot succeed as a short-term experiment.

Circular business models require:

• upfront investment
• operational redesign
• and time to scale

Many circular pilots fail not because the model doesn’t work, but because they are not given the conditions to succeed.

As highlighted during the discussion, companies that treat circularity as a side initiative often struggle to achieve meaningful results.  

The companies seeing success today are the ones building circularity into the core of their business model from the start.

Circularity is not a feature.

It is a fundamentally different way of creating and delivering value.

Circularity is becoming essential for future competitiveness

Circular business models offer a combination of benefits that are increasingly difficult to ignore:

• stronger customer relationships
• improved cost efficiency
• greater flexibility
• and new revenue opportunities

At the same time, external pressures are accelerating the transition:

• resource constraints
• changing customer expectations
• and evolving regulation

As Anders Jepsen shared during the discussion:

“We will all eventually need to move from linear to circular. Now is the time to act. Circularity isn’t a trend, it’s how you future-proof your business.”

The question is no longer if circularity will scale.

It is when - and who will lead.

Making circularity the new norm

The Circular Breakfast at Techarena reinforced a clear reality:

Circularity is no longer just an environmental ambition.

It is becoming a business necessity.

Companies that embrace circular models today are not only reducing their environmental impact.

They are building more resilient, flexible, and future-ready businesses.

That’s why NORNORM’s mission remains clear:

Making circularity the new norm.