Furniture as as service to reduce the impact of the industry

Abstract

The aim of this thesis is to explore the conditions under which a furniture-as-a-service (FaaS) business model could offer a sustainable alternative to the current furniture industry in Latin America. Specifically, it seeks to answer how a subscription model can offer access to sustainable, durable, high-quality furniture in the region. The research and analysis encompass the regional context, an in-depth exploration of the business model - from customer perspectives to scalability challenges - while addressing the issue at its roots. While previous studies have primarily focused on the environmental impact of furniture by calculating the carbon footprint of manufactured products, there has been limited research on the impact of product lifespan. Few studies have examined how the rise of fast-furniture has shortened product lifespans, leading to increased manufacturing demands and greater environmental consequences. The theoretical framework focuses on business models and solutions of Servitization and circular principles to address the environmental challenge, while unveiling context and regulations worldwide and in Latin America that provide a context and a base line in which the business model is based on. This thesis establishes a framework of conditions for implementing a furniture-as-a-service business model, based on a case study that includes interviews with key industry stakeholders and a survey to assess potential demand for the service. The findings reveal that furniture manufacturing accounts for up to 80% of the environmental impact throughout a product's lifespan, and there is significant consumer openness to exploring furniture rental services. Developing a business model grounded in circular economy principles offers a promising solution to the environmental challenges posed by the industry and could be feasible under specific circumstances.