New Business Model for Sustainable Retail Company Using Design Thinking Concept

TL;DR

This paper develops a new sustainable retail business model for Siklus using design thinking, addressing regulatory challenges and customer needs to improve sales and environmental impact.

Contribution

It applies design thinking to create a novel business model for a refill retail company facing regulatory constraints.

Findings

Return from Home is the selected new business model.

The design thinking process effectively addressed customer needs and regulatory issues.

The new model improved customer engagement and compliance.

Abstract

The waste problem is still becoming a big concern in Indonesia. Waste, especially plastic waste comes from single-use packaging of daily necessities such as personal care and home care. PT. Siklus Refil Indonesia or Siklus, a retail company, comes to offer a sustainable solution of buying daily necessities by refill method. Since April 2020, Siklus has operated in the Greater Jakarta area and already impacted 20,000 customers. However, Siklus must change its new business model due to regulation from the Food and Drug Supervisory Agency (BPOM) that warned the company not to sell personal care who come in direct contact with skin. The warning impacted the decreasing customers, sales, and profit of Siklus. This research has the purpose of determining the new business model of Siklus using the design thinking concept. By this concept, this research empathizes with customers, defines customer needs, and ideates a business model. This research continues to decide the new business model by creating a matrix of stepwise selection. Then this research does a prototype business model and tests the new business model. After doing the process, Return from Home is selected as the new business model for Siklus.