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Luxury products for the circular economy? A case study of Bang & Olufsen

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  • Anja Marie Bundgaard
  • Rikke Dorothea Huulgaard

Abstract

This paper examines whether luxury products can support a circular economy. This is done through a literature review of luxury products and the links to circular economy, as well as a case study of Bang & Olufsen (B&O). The literature review revealed links between some of the core characteristics of luxury products and the circular economy. This included aspects such as the high quality, durability, service schemes, extended warranties, and large aftermarkets. The case study supports the links between the inner circles in the circular economy (maintenance, repair, and reuse) and some of the core characteristics of luxury products. B&O produces products with a long lifespan, has extended warranties, repair and service schemes, spare part availability for 8 years, an aftermarket, and leasing schemes. B&O also does reconditioning of components for its repair loop, conducts dismantling tests, marks plastic parts, and has a negative list that excludes certain hazardous components.

Suggested Citation

  • Anja Marie Bundgaard & Rikke Dorothea Huulgaard, 2019. "Luxury products for the circular economy? A case study of Bang & Olufsen," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 699-709, July.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:5:p:699-709
    DOI: 10.1002/bse.2274
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    References listed on IDEAS

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    1. Claudia Arias & Javier Bernardo Cadena Lozano & Miguel Angel Bello Bernal, 2024. "The Role of Value in Extending the Lifetime of Products: An Analysis of Perceived Value and Green Consumption Values on Pro-Circular Behaviors of Repair and Reuse," Sustainability, MDPI, vol. 16(4), pages 1-26, February.
    2. Agnieszka D. Hunka & Marcus Linder & Shiva Habibi, 2021. "Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 535-550, January.
    3. Victoria-Sophie Osburg & Iain Davies & Vignesh Yoganathan & Fraser McLeay, 2021. "Perspectives, Opportunities and Tensions in Ethical and Sustainable Luxury: Introduction to the Thematic Symposium," Journal of Business Ethics, Springer, vol. 169(2), pages 201-210, March.
    4. Armaghan Chizaryfard & Paolo Trucco & Cali Nuur, 2021. "The transformation to a circular economy: framing an evolutionary view," Journal of Evolutionary Economics, Springer, vol. 31(2), pages 475-504, April.
    5. Emine Sarigöllü & Chenxuan Hou & Myriam Ertz, 2021. "Sustainable product disposal: Consumer redistributing behaviors versus hoarding and throwing away," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 340-356, January.
    6. Shashi & Piera Centobelli & Roberto Cerchione & Amit Mittal, 2021. "Managing sustainability in luxury industry to pursue circular economy strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 432-462, January.
    7. Pereira, Vijay & Nandakumar, M.K. & Sahasranamam, Sreevas & Bamel, Umesh & Malik, Ashish & Temouri, Yama, 2022. "An exploratory study into emerging market SMEs’ involvement in the circular Economy: Evidence from India’s indigenous Ayurveda industry," Journal of Business Research, Elsevier, vol. 142(C), pages 188-199.
    8. Jessika Luth Richter & Sahra Svensson‐Hoglund & Carl Dalhammar & Jennifer D. Russell & Åke Thidell, 2023. "Taking stock for repair and refurbishing: A review of harvesting of spare parts from electrical and electronic products," Journal of Industrial Ecology, Yale University, vol. 27(3), pages 868-881, June.

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