Reusable packaging as a service for e-commerce

Projektinformationen

Reuse as a service

ID Finanzhilfevereinbarung: 881343

DOI

10.3030/881343

Projekt abgeschlossen

EK-Unterschriftsdatum 29 Oktober 2019

Startdatum 1 Oktober 2019

Enddatum 30 September 2022

Finanziert unter

• INDUSTRIAL LEADERSHIP - Innovation In SMEs

Gesamtkosten

€ 2 564 375,00

EU-Beitrag

€ 1 780 362,50

Koordiniert durch

ORIGINAL REPACK OY
Finland

Periodic Reporting for period 2 - Reuse as a service (Reusable packaging as a service for e-commerce)

Berichtszeitraum: 2020-11-01 bis 2022-09-30

Zusammenfassung vom Kontext und den Gesamtzielen des Projekts

Reusable packaging as a service:

Problem
• We all shop more online, and each EU resident creates 160 kilograms of packaging waste annually. Current delivery packaging in e-commerce is used once and thrown away, with 52% going directly to a landfill;
• A European strategy for Plastics in Circular Economy requires all packaging to be reusable or recyclable by 2030.

Solution
• Cost-effective, easy to use reusable and returnable delivery packaging service for e-commerce;
• Data and logistics platform to take back empty packaging and reward users for taking part;
• The solution has already been demonstrated on a small scale in an operational environment reaching TRL 7. User and customer feedback are positive without exceptions;

Market Opportunity
• Total Available market (TAM) in 2018 was $850bn. Serviceable Available Market (SAM) is $15bn ($24bn in 2023). RePack Target Market € 600m;
• Demonstrated customer willingness to pay: used by 50 brands in 14 countries. Service revenue 200k € in 2018 with 30 000 shipments.

The goal of the Proposal is to build capabilities for RePack service scale-up to replace single-use packaging in online retail with cost-efficient return channels and reusable packaging designs, tested in European business environment.

Arbeit, die ab Beginn des Projekts bis zum Ende des durch den Bericht erfassten Berichtszeitraums geleistet wurde, und die wichtigsten bis dahin erzielten Ergebnisse

During the project we at RePack have developed and tested new packaging solutions, cleaning methods and return channels in the European markets. These are the main building blocks for a cost-efficient returnable packaging ecosystem and are interconnected.

During the project we built, tested and validated new return channels for reusable packaging in thousands of cost-efficient locations around Europe, despite the challenging environment caused by the global pandemic. Customers included global giants such as H&M, Zalando, Otto and Inditex. However, however, large-scale adaptation was not reached. We validated that consumers are ready for reusable packaging with selection rates of up to 40% for reusable solution over single-use and collected positive feedback from vast majority of reusable packaging users.

The project face many challenges that were outside of our control and not part of the risk assessment. During 2019-2022 the pandemic and war in Ukraine caused global supply chain challenges in material supply, manufacturing and logistics, causing significant delays in the supply chain and increased costs. It was challenging to develop new solutions to the physical retail challenge due to store closures in all European markets.

Despite the major challenges, RePack service has been tested and adopted by hundreds of online retailers in Europe and North America and it's a tested proof of concept. Going further investments are required to develop EU wide return channel for returnable packaging to meet the EU Commission's plans on requiring 10% of e-commerce packaging to be in reusable packaging by 2030.

Fortschritte, die über den aktuellen Stand der Technik hinausgehen und voraussichtliche potenzielle Auswirkungen (einschließlich der bis dato erzielten sozioökonomischen Auswirkungen und weiter gefassten gesellschaftlichen Auswirkungen des Projekts)

RePack has received extensive coverage in the media, articles in Vogue and Fast Company and featured in two TV programs on German TC channels ZDF and RTL. We have also been awarded the German Design Award and German Sustainable Design Award in the iconic design section among brands such as Dyson and Artek.

Revenues have grown 3X during the project and despite the Covid impact on the business environment, we have managed to grow the volume of packaging in circulation by 3X during the project.

We developed a new business model for rental and subscription models, where iconic jeans brand Levi’s has been one of the early adopters with their rental service, available both in Europe and the US.

Covid also forced us to rethink scaling and we have successfully launched, remotely, in Canada and the US. While decision-making has been impacted, especially in the US, we have developed remote operating procedures to manage operations from Europe and managed successful customer launches without being able to physically visit the customers or have access to their operations.

In Canada, the launch has been done in close collaboration with Canada Post and three retailers. Canada Post is the first postal operator in the world to set up a return channel for reusable.

France became the main market for reusable packaging in e-commerce in 2021 when La Poste invested in returnable packaging channel that was cheaper than any other market in Europe.

During the project the importance of packaging sustainability was highlighted in the media and in political decision making on EU level. A new packaging regulation is currently being processed, which may or may not have a significant impact on reusable packaging services on EU level

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Reusable RePack

Reusable RePack M size