Opinion: The Circular Economy is A Competitive Advantage – Tech Brands Are Leading the Shift

James Murdock, founder of circular tech firm Alchemy, argues that circularity isn’t just good for the planet – it makes business sense too, and smart tech brands know it.

The circular economy – the infrastructure by which we collect used products and give them a second life – is no longer a niche concept confined to environmental summits or corporate pledges. It’s already shaping how products are designed, manufactured, and brought to market. 

Circularity means designing products that are durable, repairable, and reusable, and creating an infrastructure to keep them in the marketplace. At this point, it’s not just an environmental initiative -it’s good business. Consumers, brands, and industries are waking up to a simple truth: waste is expensive, and efficiency pays.

The brands getting ahead are the ones embedding circular principles right from the start. This shift indicates more than a response to consumer or regulatory pressures – it’s a change in mindset.

Leading the charge

If any industry has made circularity a reality, it’s technology. Over the last decade, major tech manufacturers have normalised trade-in programmes, where you exchange old devices in return for credit toward new ones. These programmes succeed because they reduce waste and offer tangible benefits: consumers get value for money, and brands keep their customers’ loyalty.

Secondary tech has grown into a thriving sector. The key to this success lies in product design: devices built with longevity in mind have better lifespans and hold their value for longer.

Since founding Alchemy and refurbishing over ten million electronic devices, we’ve seen firsthand what makes products suitable for the circular economy. The best performers are those that have aspirational value, an ecosystem worth buying into, and a trade-in programme that is regulated and easy to access. Designing products that are reliable over several generations, with accessible parts and multi-year software updates, inadvertently prioritises circularity, too.

The role of regulation

In the US, regulations supporting a circular economy are still in the early stages, with some measures laying the groundwork for broader circular practices. For example, parts of the Inflation Reduction Act provide incentives for domestic manufacturing of clean technologies, and new regulations limiting ‘forever chemicals’ (PFAS) reflect a growing need to design products with long-term environmental impact in mind. 

In our experience though, change is mostly being driven by the private sector, which is responding to changing consumer behaviours, while also grasping the business case for offering a circular solution. 

How business leaders can advance a circular economy

Regulation will naturally play catch-up, but in the meantime, companies that want to build a circular economy will need to be proactive. For those looking to refurbish and remarket products, three key strategies that can be implemented quickly include:

1. Move away from flash sales: Brands that have constant flash sales damage their trade-in programmes. There is less incentive to buy a refurbished, older model if the new one is only 10% more while a sale is on. By offering high-quality, certified refurbished goods at a discount, brands appeal to new customers who might otherwise opt for a lower-end competitor product. For example, instead of choosing a new, lower-cost, non-brand smartphone, many will choose a refurbished iPhone 11 at a similar price but with a longer warranty and a trusted brand. 
2. Follow the secondary market closely: You must understand how the secondary market behaves so you can anticipate changes, rather than react to them. At Alchemy, we have an almost encyclopaedic knowledge of device prices over time – this is crucial.
3. Identify policy and infrastructure gaps: Companies must prepare for potential legal complexities, particularly in regions where access to circular markets is restricted or where laws around product reuse are increasing.
4. Work with experienced partners: Many manufacturers’ existing systems need to be designed for the second-hand market. It requires facilities for grading and refurbishing products, managing inventory, handling sales logistics, and much more. Outside experts have the infrastructure, systems, and know-how to manage, refurbish, and sell used products at scale. This allows companies to focus on their core business and ensures that their circular programmes are efficient, profitable, and aligned with brand standards.

Circularity is going mainstream

Circularity isn’t just happening in electronics or accessories. IKEA and Unilever have recently announced circular initiatives, including the ability to trade in and buy second-hand directly from them, and driving used packaging collection.

Even the fashion industry – traditionally focused on churn – has begun experimenting with circularity through trade-in, repair and resale programmes. These efforts go beyond eco-friendly branding; they signify a long-term strategy where profitability aligns with sustainability.

There is also a major commercial opportunity in circularity. According to the World Economic Forum, transitioning to a circular economy could generate up to $4.5T globally by 2030. Companies that engage in it have better brand equity, and they capture a growing segment of consumers – those who want newer functionality but are neutral about having the latest model. These buyers would have previously gone elsewhere, but now, they’ll join a top-tier brand’s ecosystem.

Designing for circularity from the start

The foundation of a circular economy is laid in the design phase – products must be built with their second and third lifecycle in mind. This requires attention to several key factors. Firstly, and most obvious, is durability – manufacturers that place focus on quality products that last longer and benefit the most from circularity.

Repairability is also very important, but a product that lasts twice as long as another will naturally have a much lower carbon footprint than its cheaper alternative. It often starts with design – I’ve seen time and time again that devices built with longevity in mind make all the difference.  

In tech, consumers are now more interested in buying refurbished devices because we’ve got to the point where they trust the process. This behaviour is setting a template for other sectors, from fashion to furniture, where information about reusing or restoring items has become trendier and easily accessible.  

Compliance or competitive advantage?

Leading companies see circularity as a strategic opportunity to differentiate themselves. Trade-in programmes and secondary marketplaces help companies tap into the “quality over quantity” mindset among customers. But these initiatives only work if the process is seamless – consumers need simplicity and full transparency every step of the way.  

Brands that embrace circularity today aren’t just future-proofing their operations – they’re setting themselves apart in a marketplace that puts affordability, loyalty and sustainability first. If tech’s circular journey shows anything, it’s that good design reduces waste, and keeps customers happy – everyone wins.