The familiar refrain of the sharing economy—cars idle 95% of the time, drills spend a mere 13 minutes in a lifetime of use—has resonated for years. Yet, despite the appeal of these statistics, the majority of individuals continue to possess a plethora of underutilized objects and products, from books to garments, from sports gear to electronics. This accumulation of personal belongings not only represents millions of tons of unused resources but also embodies a colossal investment of labor and capital that lies dormant.
The sharing and circular economy promise a radical shift in consumption paradigms, challenging the conventional wisdom of ownership. However, ushering in such transformative change requires a departure from siloed innovation and a move towards comprehensive, systemic strategies.
A systemic innovation approach to the sharing economy would encompass not only future policies, techs, and business models, but also their mutual impacts, complex interactions, and secondary consequences, blending economic, political, environmental, and cultural factors into future-world scenarios.
We envisioned an approach to tackle product circularity that encompasses not 1 but 5 individual coordinated points of intervention — each of which may not reach viability when happening in isolation — showcasing a portfolio approach to complex, multi-faceted challenges.
EU regulation requiring product IDs (or DPPs) for products priced above 15€.
At the forefront of this systemic innovation approach is the creation of an international standard for product IDs or Digital Product Passports, a unified global repository of product information and digital twins — think of it as a barcode 2.0. The creation of such standards could be promoted by the EU or similar supranational organisations. If this seems too hard to achieve, it is useful to remember the (relatively recent) history of a similar endeavor, the creation of international barcodes: despite being the norm in commerce today, they only met a widespread adoption in the 1980s, and they show today an impressive degree of international standardisation. It is worth mentioning that Digital Product Passports regulations are already in the making within the European Union, with pilot solutions for certain classes of products — e.g. batteries and textiles — which will come into effect between 2026 and 2030.ID-enabled providers of intelligent supply chain solutions.
Product ID regulations would usher in a renaissance for intelligent supply chain solutions (logistics, inventories, self-checkouts). Many brands like Nike and Decathlon already adopted proprietary RFID solutions, proving their viability. These brands use RFID and digital twin solutions both for production — for example, to quickly count the number of products inside a box — and for in-store experience — for example, for fast self-checkout options.
The sharing and circular economy promise a radical shift in consumption paradigms, challenging the conventional wisdom of ownership. However, ushering in such transformative change requires a departure from siloed innovation and a move towards comprehensive, systemic strategies.
Products IDs are made available to customers (via RFID or QR code) through third-party service providers.
The emergence of ID front-end providers such as EON adds another layer to this systemic transformation. These providers empower consumers to access product information effortlessly by simply bringing their phones near the item. This not only enables streamlined one-tap sharing and reselling, but also simplifies lost-and-found processes and acts as a deterrent against theft.
These third-party service layers could explode in popularity following EU regulations. Consequently, a similar boost could be experienced by neighbourhood sharing platforms and second-hand marketplaces, by easily integrating into the Product ID service provider, and having instant access to product information.EU regulation on right-to-repair and product durability.
Right-to-repair policies, extended guarantee periods, and minimum selling windows might further incentivise exchange, repairs, refurbishing, and product longevity.Street lockers, delivery robots, and bike deliveries to ease pickups and returns.
Similarly to fast food deliveries offered by companies like Uber Eats and Deliveroo, product sharing could also be boosted by fast bike deliveries and automated robot deliveries. Street lockers and sharing facilities within big apartment blocks could contribute to easy pickup and return as well. And in the future, private homes could feature "osmotic walls", cabinets that are accessible both from the inside and the outside of a property, allowing for easier sharing with the neighborhood.
As this preliminary draft underscores, a portfolio approach to systemic innovation is essential for navigating the complexities of paradigmatic change. By addressing policies, technologies, and business models in tandem, and considering their interconnected impacts, we pave the way for a more sustainable and efficient future. This holistic approach raises critical questions: Can similar strategies be applied to other entrenched paradigms, and what ripple effects might they trigger? The answers may lie in the collaborative efforts of forward-thinking companies, policymakers, and innovators committed to reshaping the way we consume and interact with the world around us.
