IDEAS home Printed from
   My bibliography  Save this article

Luxury products for the circular economy? A case study of Bang & Olufsen


  • Anja Marie Bundgaard
  • Rikke Dorothea Huulgaard


This paper examines whether luxury products can support a circular economy. This is done through a literature review of luxury products and the links to circular economy, as well as a case study of Bang & Olufsen (B&O). The literature review revealed links between some of the core characteristics of luxury products and the circular economy. This included aspects such as the high quality, durability, service schemes, extended warranties, and large aftermarkets. The case study supports the links between the inner circles in the circular economy (maintenance, repair, and reuse) and some of the core characteristics of luxury products. B&O produces products with a long lifespan, has extended warranties, repair and service schemes, spare part availability for 8 years, an aftermarket, and leasing schemes. B&O also does reconditioning of components for its repair loop, conducts dismantling tests, marks plastic parts, and has a negative list that excludes certain hazardous components.

Suggested Citation

  • Anja Marie Bundgaard & Rikke Dorothea Huulgaard, 2019. "Luxury products for the circular economy? A case study of Bang & Olufsen," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 699-709, July.
  • Handle: RePEc:bla:bstrat:v:28:y:2019:i:5:p:699-709
    DOI: 10.1002/bse.2274

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Kemp, Simon, 1998. "Perceiving luxury and necessity," Journal of Economic Psychology, Elsevier, vol. 19(5), pages 591-606, October.
    2. Vasileios Rizos & Arno Behrens & Wytze Van der Gaast & Erwin Hofman & Anastasia Ioannou & Terri Kafyeke & Alexandros Flamos & Roberto Rinaldi & Sotiris Papadelis & Martin Hirschnitz-Garbers & Corrado , 2016. "Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-18, November.
    3. Paul James Brown & Christopher Bajada, 2018. "An economic model of circular supply network dynamics: Toward an understanding of performance measurement in the context of multiple stakeholders," Business Strategy and the Environment, Wiley Blackwell, vol. 27(5), pages 643-655, July.
    4. Catherine Janssen & Joëlle Vanhamme & Adam Lindgreen & Cécile Lefebvre, 2014. "The Catch-22 of Responsible Luxury: Effects of Luxury Product Characteristics on Consumers’ Perception of Fit with Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 119(1), pages 45-57, January.
    5. DUBOIS, Bernard & LAURENT, Gilles & CZELLAR, Sandor, 2001. "Consumer rapport to luxury : Analyzing complex and ambivalent attitudes," HEC Research Papers Series 736, HEC Paris.
    6. Genovese, Andrea & Acquaye, Adolf A. & Figueroa, Alejandro & Koh, S.C. Lenny, 2017. "Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications," Omega, Elsevier, vol. 66(PB), pages 344-357.
    7. Sandrine Falcy & P. Valette Florence & Virginie de Barnier, 2012. "Do consumers perceive three levels of luxury? A comparison of accessible, intermediate and inaccessible luxury brands," Post-Print halshs-00786023, HAL.
    8. Andrew M. King & Stuart C. Burgess & Winnie Ijomah & Chris A. McMahon, 2006. "Reducing waste: repair, recondition, remanufacture or recycle?," Sustainable Development, John Wiley & Sons, Ltd., vol. 14(4), pages 257-267.
    9. Zhan, Lingjing & He, Yanqun, 2012. "Understanding luxury consumption in China: Consumer perceptions of best-known brands," Journal of Business Research, Elsevier, vol. 65(10), pages 1452-1460.
    10. Achabou, Mohamed Akli & Dekhili, Sihem, 2013. "Luxury and sustainable development: Is there a match?," Journal of Business Research, Elsevier, vol. 66(10), pages 1896-1903.
    11. Mariale Moreno & Carolina De los Rios & Zoe Rowe & Fiona Charnley, 2016. "A Conceptual Framework for Circular Design," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-15, September.
    12. Jean-Noël Kapferer & Vincent Bastien, 2009. "The specificity of luxury management: Turning marketing upside down," Post-Print hal-00493180, HAL.
    13. Anido Freire, N., 2014. "When luxury advertising adds the identitary values of luxury: A semiotic analysis," Journal of Business Research, Elsevier, vol. 67(12), pages 2666-2675.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Emine Sarigöllü & Chenxuan Hou & Myriam Ertz, 2021. "Sustainable product disposal: Consumer redistributing behaviors versus hoarding and throwing away," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 340-356, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karatzas, Stelios & Kapoulas, Alexandros & Priporas, Constantinos Vasilios, 2019. "Consumers' perceptions on complexity and prospects of ethical luxury: Qualitative insights from Taiwan," Australasian marketing journal, Elsevier, vol. 27(4), pages 224-232.
    2. S.M. Mizanur Rahman & Junbeum Kim & Gilles Lerondel & Youcef Bouzidi & Laure Clerget, 2019. "Value Retention Options in Circular Economy: Issues and Challenges of LED Lamp Preprocessing," Sustainability, MDPI, Open Access Journal, vol. 11(17), pages 1-20, August.
    3. Claudia Aparecida De Mattos & Thiago Lourenço Meira De Albuquerque, 2018. "Enabling Factors and Strategies for the Transition Toward a Circular Economy (CE)," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-18, December.
    4. Llamas, Rosa & Thomsen, Thyra Uth, 2016. "The luxury of igniting change by giving: Transforming yourself while transforming others' lives," Journal of Business Research, Elsevier, vol. 69(1), pages 166-176.
    5. Jenni Sipilä & Sascha Alavi & Laura Marie Edinger-Schons & Sabrina Dörfer & Christian Schmitz, 2021. "Corporate social responsibility in luxury contexts: potential pitfalls and how to overcome them," Journal of the Academy of Marketing Science, Springer, vol. 49(2), pages 280-303, March.
    6. Zahra MajlesiRad & Abdol Hamid Haji pour Shoushtari, 2020. "Analysis of the impact of social network sites and eWOM marketing, considering the reinforcing dimensions of the concept of luxury, on tendency toward luxury brand," Future Business Journal, Springer, vol. 6(1), pages 1-19, December.
    7. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Saboo, Alok R., 2020. "Identifying the drivers of luxury brand sales in emerging markets: An exploratory study," Journal of Business Research, Elsevier, vol. 111(C), pages 25-40.
    8. Janssen, Catherine & Vanhamme, Joëlle & Leblanc, Sina, 2017. "Should luxury brands say it out loud? Brand conspicuousness and consumer perceptions of responsible luxury," Journal of Business Research, Elsevier, vol. 77(C), pages 167-174.
    9. Naïade Anido Freire & Leïla Loussaïef, 2018. "When Advertising Highlights the Binomial Identity Values of Luxury and CSR Principles: The Examples of Louis Vuitton and Hermès," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 565-582, July.
    10. Parguel, Béatrice & Delécolle, Thierry & Valette-Florence, Pierre, 2016. "How price display influences consumer luxury perceptions," Journal of Business Research, Elsevier, vol. 69(1), pages 341-348.
    11. Farhad Aliyev & Taylan Urkmez & Ralf Wagner, 2019. "A comprehensive look at luxury brand marketing research from 2000 to 2016: a bibliometric study and content analysis," Management Review Quarterly, Springer, vol. 69(3), pages 233-264, September.
    12. Farhad Aliyev & Ralf Wagner & Stefan Seuring, 2019. "Common and Contradictory Motivations in Buying Intentions for Green and Luxury Automobiles," Sustainability, MDPI, Open Access Journal, vol. 11(12), pages 1-15, June.
    13. Shao, Wei & Grace, Debra & Ross, Mitchell, 2019. "Consumer motivation and luxury consumption: Testing moderating effects," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 33-44.
    14. Michel Gutsatz & Klaus Heine, 2018. "Is luxury expensive?," Journal of Brand Management, Palgrave Macmillan, vol. 25(5), pages 411-423, September.
    15. Béatrice Parguel & Thierry Delécolle & Aïda Mimouni Chaabane, 2020. "Does Fashionization Impede Luxury Brands’ CSR Image?," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-16, January.
    16. Julian Lauten-Weiss & Stephan Ramesohl, 2021. "The Circular Business Framework for Building, Developing and Steering Businesses in the Circular Economy," Sustainability, MDPI, Open Access Journal, vol. 13(2), pages 1-14, January.
    17. Koronaki, Eirini & Kyrousi, Antigone G. & Panigyrakis, George G., 2018. "The emotional value of arts-based initiatives: Strengthening the luxury brand–consumer relationship," Journal of Business Research, Elsevier, vol. 85(C), pages 406-413.
    18. Sindy Liu & Patsy Perry & Gregory Gadzinski, 2019. "The implications of digital marketing on WeChat for luxury fashion brands in China," Journal of Brand Management, Palgrave Macmillan, vol. 26(4), pages 395-409, July.
    19. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    20. Roux, Elyette & Tafani, Eric & Vigneron, Franck, 2017. "Values associated with luxury brand consumption and the role of gender," Journal of Business Research, Elsevier, vol. 71(C), pages 102-113.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:28:y:2019:i:5:p:699-709. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.