Squirrel pelts return through the collaboration of circular economy operators
The circular economy accelerates as two circular economy operators, Emmy and Inrego, start a collaboration. The goal is to make used goods a real means of payment and to unlock the capital sleeping in closets. This collaboration is the first of its kind in Finland.
According to research, over 60% of the contents of people’s wardrobes are lying unused without any future purpose. In addition, there are 7.1 million unused smartphones sitting in Finnish closets. Circular economy pioneers Emmy and Inrego want to show people the potential of products that are no longer needed and are introducing a completely new concept to the market, where for the first time customers can exchange clothes they no longer need for used and refurbished electronics. This is a modern version of the squirrel pelt trade.
"We are on the verge of a payment method change. Centuries ago, squirrel pelts were an important means of payment. You could exchange a squirrel pelt for another product you needed. The same logic is now returning in the circular economy, as a large amount of money is resting in people’s closets in the form of goods. The goal of our collaboration is to get these items circulating, so that used clothes serve as a means of payment for used electronics," says Emmy’s Chief Operating Officer Sienna Kruk.
For the first time in Finland, a used product can be used as a means of payment to acquire another used product. The collaboration starts on May 8, 2024. In practice, customers can give their unneeded clothes to Emmy to be sold and exchange the sales proceeds for a gift card to Inrego’s online store. Customers receive a 10% higher return on the gift card, which they can use to purchase used electronics.
In the companies’ circular economy collaboration, the value for customers and the national economy multiplies, because at the same time dormant capital is released and the customer’s purchasing power improves as they get a quality product at a lower price than new. The multiplier effect can be calculated, for example, with an annual clothing sale worth 300 euros, with which the customer can acquire a used smartphone, tablet, or even a computer in good condition.
“The collaboration with Emmy proves that the circular economy works across industry boundaries. By going through your own wardrobe, you can easily collect the money needed for, for example, a smartphone or a laptop. We are excited that together we can offer people this good old barter model. I believe that with these kinds of collaboration concepts, we can gradually change people’s consumption habits in a more sustainable direction,” says Inrego’s Marketing Manager Heini Kettunen.