If you are wondering how a sustainable business model works and are looking for inspiration on making your jewellery business model sustainable, you have arrived at the right place. When it comes to business models, there are so many different types. With sustainability becoming a rising topic among businesses, you may want to consider including this in the model. When implementing this, your business will focus on reducing environmental impacts and improving social capital. We are going to discuss how to make a sustainable business model, successful jewellery companies with these types of models, and challenges associated with following this business model. Continue reading to learn more.
In this post we’re going to explore the following topics:
A traditional business model refers to a company’s detailed plan on how they are delivering products to customers to make a profit. For a sustainable business model, it does this same thing while also focusing on eliminating the depletion of natural, economic and social capital. Sustainability is becoming increasingly important across all industries and is a long-term commitment. Utilizing sustainability can give your jewellery business a competitive advantage.
When it comes to sustainability, there is the triple-bottom-line-approach, also known as the three pillars – profits, planet, and people. The environmental pillar often gets the most attention, but the other two are equally as important. In order to make your jewellery business more sustainable, you must implement these three pillars into the segments of your business canvas model. If you’re interested in learning more about the BMC here’s an article for you!
Corporate social responsibility (CSR) has become an important issue as companies strive to balance their need for profitability and contributing to the well-being of society they continually depend on. There are a wide range of CSR strategies developed within the company that are related to philanthropy, ensuring diversity in the workplace, improving operational effectiveness by focusing on social and environmental initiatives across the value chain, and eventually transforming the business model. This self-regulating business model allows companies to be socially accountable and be conscious of their impact. CSR is at the core of operations and guides future progress.
We are going to discuss how to implement these practices for a sustainable business model in the next section.
Green business models allow for the opportunity of recycling and reusing materials repeatedly. The other assets of profits and people come together to shape the business model for sustainable practices too.
There is a special type of model that allows for sustainability. In contract to the ‘take, make and waste’ approach or linear economy model that mines raw materials and processes this into a product with the product eventually discarded, the circular economy model changes the way in which production impacts the environment. The perspectives of these two concepts are complete opposites. The linear economy model is short term, from sales to purchase. The circular economy model is more long term, and is centred around three principles that reduce negative impacts:
With these steps, some materials can safely re-enter the natural world, while some must go through the cycle because they cannot re-enter the environment. Included in this second category are plastics and metals. Using this circular economy method will allow metal from jewellery to cycle through to be reused repeatedly.
Here are additional ways for sustainability in your business model that are separated into the three pillars.
Switching to a sustainable model can do good for your jewellery company with profit opportunities, greater security of supply chain, increased product demand, and greater customer loyalty. Replacing any unsustainable practices will make your jewellery business more feasible in the long run. When first beginning the transition, taking small steps is fine before immediately jumping on the train.
There have been several jewellery businesses that have succeeded in implementing a sustainable business model. Two of these companies, Tiffany and Co. and Pandora, have been transparent about their actions and have published annual reports on their sustainability efforts related to supply chain and social equity. We are going to discuss more details about each company’s efforts.
Tiffany and Co.
Tiffany and Co. is known for their luxurious jewellery made of diamonds and other gemstones that serve as a symbol of sophistication. Not only have they sourced their materials responsibly and traced their gemstones from the mines, they commit to extra sustainable processes related to production, distribution and retail operations. In addition to focusing on products and protecting the planet, Tiffany gives attention to diversity, inclusion, fairness, and respect for employees. Here are just a few of the ways Tiffany and Co. follows a sustainable business model.
Tiffany and Co. is one of the leaders in the jewellery industry because sustainability is embedded in their core values, and they are constantly updating policies to guide their operations.
Pandora is the world’s leading jewellery company that sells affordable, hand-finished and contemporary jewellery made from high-quality materials. The company takes the initiative to have sustainability and diversity within their value chain. Pandora adopts a circular economy approach, as discussed above in section two. In addition to watching their footprint, they respect human rights and provide a safe working environment. Here are just a few more of the ways Pandora follows a sustainable business model.
Although Tiffany and Co. and Pandora did not begin operating sustainably, both of these well-known jewellery companies have successfully made their business models sustainable. This is a growing concept that other businesses in the jewellery industry can learn from and eventually follow.
Transitioning to a sustainable business model from a traditional once can be an excellent choice to minimize the impact on the environment and provide for humanity. Although following this model can bring new customers and even higher customer retention rates, there can be challenges associated with it. Rather than changing one part of the system to see results, you must adjust the entire system. Some challenges are explained in more detail below.
It can be challenging to make all aspects of your business model sustainable, if you are outsourcing.
Implementing sustainability in your business model can be a time-consuming and difficult process.
Whether you are starting with a sustainable business model or switching from a traditional one, going down the route of sustainability is important for your jewellery business. More companies are choosing to recycle materials to gain a sustainable edge. Not only will you reduce negative environmental impacts from company operations, you will improve social capital. The most common way to make your jewellery business model sustainable is through your supply chain, but there are other ways to go about. It can be difficult to overcome some of the challenges associated with a business model based around sustainability. Although a green business model can be more challenging, it will be well worth it at the end of the day.
Here are important things to consider.
We hope you found this post useful. On our online blog you’ll be able to find many more articles on sustainability in fashion and jewellery. Also consider enrolling into our new online course entitled the Sustainable Fashion Industry.
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