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

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  • Anja Marie Bundgaard
  • Rikke Dorothea Huulgaard

Abstract

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
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    File URL: https://doi.org/10.1002/bse.2274
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    References listed on IDEAS

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