Philips Simplicity Event 2008 - Circle of Life Concept

October 15, 2008

Philips takes seriously the environmental issues resulting from the production and disposal of goods. Philips also progressively incorporates ‘design for recycling’ in its product creation process, and increases its commitments through end-of-life recycling management. Let us introduce you to a concept for delivering responsible goods: Circle of Life.

The effects of Consumerism
In today’s globalized climate, consumption is central to many economies and its effects are felt around the world. How and why we consume informs how resources are gathered, how products are created and how waste and pollution are generated. Our consumption also affects environmental degradation, poverty and hunger, and even our individual health –  as levels of obesity are nearing those of global poverty. Political systems across the world promote economic models based on consumption, this contributes to the further degradation of our planet, health and standard of living.

Approximately 1.7 billion people now belong to the ‘consumer class’, a group of people devoted to the accumulation of non-essential goods. Items that were once considered luxuries – televisions, cell phones, computers, air conditioning – are now viewed as necessities. Today, almost half of global consumers live in developing countries, including 240 million in China and 120 million in India, markets with the most potential for expansion.

Rethinking Consumerism
At least two important changes are expected to take place in the future. One revolves around how individuals will get what they need. The second centers around changing what individuals actually believe they need.

There will be a need for a greater connection between producer, seller and consumer. Retailers will have to speak to more ethically conscious and demanding consumers who want transparency and insight into how their purchases are made and by whom. Consumers are more aware than ever of critical issues such as child labor, sweat shops and farming industry practices. This has led them to question social and commercial institutions, as well as the brands they buy. New purchasing behaviors have emerged in the form of ‘try before buy’, ‘buy green’ and ‘buy local’. And more engagement in the purchasing process is also offered by try-consuming, personalization and co-creation. People are moving away from mass and impulse consumption, towards conscious consumption and experience discovery.

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n this new world, only innovation can create value and in turn, profitable growth. At the same time, corporations are realizing that neither value nor innovation can be successful or sustained if approached purely from a company or product-and-service perspective. A new point of view is needed, one that allows individuals to co-construct their consumption experiences through personalized interactions that bestow something unique. Self-made products or gifts will have more value and be less disposable. Companies that facilitate co-creation will benefit from a more direct understanding of their consumers’ mindsets and desires, allowing them to tailor products to their true needs.

For many, shopping is a chore and can feel impersonal. We know the kind of product we want but are sometimes confused by the amount of choice or technical jargon, which means we buy things with features we don’t need or understand.

What if the shopping experience was different? What if the shopping environment was a place where we could feel creatively involved and in control? What if we could buy things that fulfilled our needs and fit perfectly in our homes? What if the product’s life before purchase and after disposal could be taken into account during the experience?

Concept Description - Circle of Life

Circle of Life is a concept for a truly informed and heightened shopping experience, where old products are returned, recycled and re-used, and where new products are assembled on-site and co-created with the customer.

Shopping responsibly – a five step activity loop
The ‘Circle of Life’ is a closed loop that ends at ‘Ownership’, but starts with ‘Recycling’ – acknowledging that nothing disappears or emerges out of nowhere: everything is the result of transformation. The shopping experience is defined by five steps within the ‘Circle of Life’, where all aspects of a product’s lifecycle involve the customer:

1. ‘Recycling’: returning products for dismantling
2. ‘Core customization’: co-creating the functionality of a new product
3. ‘Skin personalization’: co-creating the product’s look and feel
4. ‘Assembly’: enjoying the production and assembly of the new product
5. ‘Ownership’: owning and using the product. Altering the product long after acquiring it

Philips illustrates the five steps of the Circle of Life concept, with three examples: Senseo coffee makers, Flat TVs, and LivingColors lamps. For this description, we will focus on the LivingColors experience.

Recycling – returning products for dismantling
Consumers are rewarded for return old products to the shop. Philips has visualized a concept where the company can benefit through retrieving raw materials for the creation of new products. The planet benefits from less waste. The consumer decides how to use ‘credits’ collected on a green, leaf-shaped, token – directly contributing to the planet’s welfare by donating to eco friendly organizations, or receiving discounts on green products from the Circle of Life shop.

Consciousness and reward – ‘Eco Credits’ in an ‘Eco Token’
In the Circle of Life shop, materials have value and consumers are rewarded for returning old products. They are educated about the significance of this and rewarded for returns.

Core customization – co-creation of the functionality of a new product
With the help of the Design DJ, consumers can co-create products – whether a new item for the home or a daughter’s birthday gift for her mother.

Functionality modules
To avoid coercing consumers into buying unwanted functions – and therefore prevent producing unnecessary products and features which in turn create more waste to be disposed – consumers will be given the choice to customize products according to need.

Pre-experience
Along the co-creation process, the consumer can examine a product’s fit at its final destination. By loading a picture of where it will be used, consumers can best judge how it integrates with the surroundings through a life-size visualization.

LivingColors lamp example
A daughter has chosen LivingColors as a gift for her mother. First, the Design DJ will invite her to load a photograph of the living room. Then, like with a jigsaw, she can pick and choose core modules. Along the way, she can preview and make choices: should the lamp be hanging, wall-mounted or simply lay on a table? What would the ideal light output be? Would additional accessories such as built-in program for lighting up parties or creating the perfect atmosphere for yoga be a pleasant surprise for Mom?

Skin personalization – co-creation of the look & feel of a product
The third stage of the Circle of Life is about defining the outer shell of the product, its ‘skin’. It is about material type, provenance and recyclability. Making informed choices about these leads to more ecologically responsible products. This is a mutually beneficial scenario resulting in the opportunity to co-create more personalized, cherishable and less disposable products.

Informed decision on material type and provenance
Information will be transparent for more informed decision-making by consumers. Is the material based on scarce resources? Is it recyclable? Is it at least reusable in some way? Is it produced locally or elsewhere in the world? These options can lessen the energy required to bring products to the consumer’s doorstep and can also provide opportunities for local employment.

LivingColors lamp example
To give the gift a truly personal touch, the Design DJ invites the mother and daughter to create a one-off piece, for example a personal engraving with a decorative pattern or signature. By placing an item such as a favorite scarf on a designated area on the large display, the system will pick a section of its pattern and duplicate it onto the revolved shape of the LivingColors lamp. Finally, the mother and daughter can sign on the display and both signatures will automatically be engraved at the bottom of the lamp.

Assembly
The consumer now has the opportunity for to review before buying.

Review before assembly – Eco Credit review and Test Drive
The consumer can see how many Eco Credits accumulate from their current selection and decide whether they’d like to aim for a higher target. Consumers can pre-experience the product they are about to buy in their domestic setting and admire the personalized pattern they have co-created.

With a firm decision to purchase, consumers will know exactly what the impact will be on the planet and on them.

LivingColors lamp example
The outside shell of the LivingColors gift is made behind the scene thanks to a rapid prototyping technique. The mother and daughter can see the progress on the large display screen. Once ready, the finished lamp emerges unpackaged from a side opening – the Design DJ knows that creators want to see and touch their personalized creation straight off the production line.

From a dedicated counter, the daughter can marvel at the names engraved on the lamp and at how beautifully the LivingColors lamp changes color when gently rolled on the counter thanks to a built-in sensor.

Ownership
At any time, years after purchase, consumers can go back to the shop for a product upgrade or downgrade. Circle of Life supports them in this as it far more ecologically responsible to replace a small part of a product’s hardware or upgrade its software, than it is to dispose of it completely.