Fiona Halpin
Jaakko Pelkonen
Joonas Tikka
akuri lucien fobi
Hanken School of Economics
Sanchi Maheshwari
Martin Fougere
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Repack designs packaging packages made of polypropylene, polyethylene and cardboard which are very durable and last at least 20 cycles.
These materials are 100% recyclable and repack reduces carbon dioxide emission by 80% without trash.
Repack addresses #Envision 2030 goals 12 &13 by sustainably managing and efficiently using scarce natural resources as well as reducing carbon dioxide emission by 80%.
RePack is an innovative Finnish reusable packaging service. The goods are sent to the customer in a reusable, adjustable package. After the delivery of the package, the customer will return the empty package to the post box and it will be reused. The customer will receive a voucher once the package has returned and the voucher can then be used e.g., for discounts on future purchases. The company offers their award-winning packages in 3 different sizes. The company works in cooperation with a number of different online stores and they focus on reducing the waste caused by international post packages.
The company focuses on several different SDG’s, including climate action, life below water, and life on land. Focusing on reducing the amount of trash, eventually gives a better environment for all life on earth. Their main focus however, is on responsible production and consumption and sustainable cities and communities. Reusable products decrease waste and energy use which both contribute to more sustainable and responsible environments. They can also be seen as a company that reduces inequalities, as the cleaning of the packages is handled by the Social workers association, employing people with disabilities. By employing those in need, they can also be seen as a poverty alleviating company.
The RePack idea originally came from a collaboration between the Plan B From Outer Space and the Finnish postal service. As the interviewee of this report, Jonne Hellgren the CEO and CO-Founder of RePack, puts it:
“Well, the idea was that we were working with the Finnish postal system, and we were seeing the rise of e-commerce and all the packages being delivered.”
The idea originated from one of the lead designers of RePack, Juha Mäkelä, who came up with the idea to reshape and readapt the Finnish deposit system for plastic bottles to a new environment. The idea was not originally received well by other members of the RePack team, but Mäkelä persisted that the idea and concept was worth their time:
“...Juha Mäkelä, he said: why can’t we apply that bottle returning service into other forms of packaging. We told him to be quiet because we have a good project with the post office, it is paying well and we don’t want to get distracted. But he wouldn’t be quiet... ...it took us like over two years to commit to it to see if it works.”
The idea came from two places: understanding that e-commerce is a growing trend and being environmentally conscious at the same time. Hellgren states that what keeps him inspired and excited are the possibilities of what future brand collaborations might offer:
“Every time I come from a big brand meeting who I know likes us and has the potential to change the company...”
According to the data by RePack, 75% of the packages are returned and 60% of the vouchers are claimed. Additionally, damaged packages are upcycled to be used for new products or the materials are recycled. RePack is an easy way for companies to implement the concept of a circular economy, making it attractive for many eCommerce companies. At the moment 40+ webstores are already using the service and the number is growing. Customers have also generally been very satisfied with the service as the Net Promoter Score is as high as 79%. The company currently has offices in three cities, Helsinki, Hamburg, and Amsterdam and they are focusing their efforts into becoming an even more global company.
They have also won a number of different awards for their products including the Nordic Council Environment Prize in 2017, Climate KIC Venture Competition Nordic in 2015, and also Fennia Prize and Green Alley Award back in 2014. They have also estimated that the CO2 emissions associated with packages reduce by 80% as a bonus for producing so little waste. In addition, as the packages are adjustable, the companies will not need to ship air to their customers, thus saving money on postage. Overall RePack has managed to design a product that’s beneficial for both the customers and companies. The products' most important benefit however, is to the environment through a reduced amount of waste.
The core innovation of Plan B From Outer Space is RePack, the recyclable packaging pouches, and its logistics system (Kauppalehti, 2018). Currently, RePack’s logistics center is in Estonia, while their headquarters is located in Finland. RePack has already been expanding into central Europe, where Hamburg and Amsterdam were their first expansion locations. RePack’s expansions to central Europe has already generated work opportunities in many different countries and it will continue to do so. These new work opportunities will arise, mainly in the logistics industry and in their sales department. RePack has been the main product of the company for the past 6 years now. During the past four years, the company’s revenue has doubled, although they are currently taking a loss (Kauppalehti, 2018). RePack has created a new investment opportunity by innovating a new product and creating a new sub-market for sustainable packaging.
Sustainability is currently a trend that will most likely continue into the future. Combine that with an original idea that benefits not only the companies using RePack by providing them new customers and through the voucher-system with returning customers, but also the end-consumer with a guilt-free shopping experience, RePack is a suitable investment opportunity in the future (Figge, F., & Hahn, T. (2004))(Sonneveld, K., James, K., Fitzpatrick, L., & Lewis, H. (2005)). Any further expansion on RePack’s side will most likely create new investment opportunities in the reusable material development industry.
RePack benefits the environment by reducing the amount of packaging materials used (RePack; 2018). Sustainable consumption in e-commerce is an ever growing problem due to e-commerce’s rapid growth (Nordic Co-Operation; 2017). Every year the average Finnish consumer produces 176 pounds of waste; RePack is designed to reduce this waste by providing companies with a solution that not only is easy for them to use but also easy for the consumer to use (Ecommerce News; 2014)(Print&Media; 2013).
RePack currently offers its services to a variety of different companies in the Nordic countries, Hamburg and Amsterdam. That being said, the end user of RePack can be located anywhere in the world. RePack is contributing to two different Social Development Goals: responsible consumption and production (goal number 12), and climate action (goal number 13). RePack’s contribution to goal number 12 is that using RePack reduces the amount of waste produced by consumers and the companies therefore being in line with sustainable business practices and consumer behavior. RePack is also in line with the goal 13, although indirectly. If the consumer produces less waste, then less waste is needed to be processed by waste management companies and because the amount of waste processed is reduced, less carbon dioxide is produced.
Although the innovation is sustainable in the way that it reduces packaging waste, it is a short-term solution to a long-term problem: it does not reduce consumer culture, it only makes it temporarily more sustainable.
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Repack is a sustainable service company that provides reusable packing with the goal of reducing trash in the environment. Repack serves end customers and retailers “together in a loop of goods”.