ARPE is using an innovative patronage system to minimize production loses and then incorporates, within its business model, a take-back approach for collecting out-of-use towels in the collectivities (first customer) to re-process them and make a new product, cleaning cloths for industrial use (second customer), at a minimal cost and providing employment opportunities in Europe. At the end-of-life of the second use, the raw material (PES) can be recycled and incorporated into the towel production of the first product (towels) closing the material loop.
ARPE’s innovation is a game-changer business model integrating the life management of towels in fitness centers and other collectivities using a circular economy approach for delivering multiple life to the product and multiple economic valorization:
- Production and sale of polyester microfiber towels for collectivities (SALE)
- Recover those towels at the end of their life for recycling (TAKE-BACK)
- Refurbish the towel into a new product for other sectors (SALE)
- Potential for recycling the second product to fiber level and go back to fresh towel production (CIRCULAR RECYCLE)
ARPE made a first demonstration with key stakeholders with 100 kg of end-of-life towels to turn them into 2500+ cleaning cloths.
Specific objectives for the feasibility study were:
1. Determine the technical viability of different after-life applications (by color, by requirements, etc.) and the logistics involved in the take-back approach for recovering the first product, particularly at multi-country level.
2. Identify and analyze the market at EU and global scale: segmentation, distribution channels and regulations to define the capabilities profile and competitive advantages, for both first and second life applications.
3. Review and optimize the business model for monetizing ARPE-CIRCULAR-TOWEL including a servitization approach for full-service and identify missing key stakeholders for deployment.
4. Review ARPE-CIRCULAR-TOWEL IP position, secure the trademark in target countries and validate the freedom to operate.
5. Define a business plan and the business strategy for commercialization of the ARPE-CIRCULAR-TOWEL system: production capabilities (current and needed), marketing strategy (distribution, pricing and promotion), financial plan (costs to be incurred, margin and investments needed) and definition of the roadmap for the implementation of the next stages.
