The Circular Economy Show Podcast Why do circular business models fail to scale? Strategic misalignment
Oct 21, 2025
Maddy Oliver, a researcher from the Ellen MacArthur Foundation, and Ella Hedley, their research lead, dive into why circular business models often fail. They discuss strategic misalignment, highlighting the importance of aligning business operations, customer needs, and product requirements. Maddy shares a cautionary tale about a fashion brand's failed resale pilot, while Ella emphasizes the need for seamless customer experiences and aligning products with customer readiness. Their insights offer practical solutions for avoiding common pitfalls in scaling circular models.
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Align Model, Customer And Product
- Circular models fail when business operations, customer needs, and product requirements aren’t considered together.
- Aligning delivery, adoption, and revenue for context is essential before scaling.
Match The Model To Your Organisation
- Map your organisation's capabilities before selecting a circular model and avoid chasing trends blindly.
- Choose entry points that require minimal short-term change to build internal trust and momentum.
Resale Pilot Stalled By Legacy Logistics
- A high-street fashion brand launched resale but its logistics were optimised for one-way, high-volume sales.
- The pilot lacked volume and harmed leadership's perception of circular models at scale.