How Value Co-creation Can Change Our World of ‘Consume and Dispose’ into ‘Consume and Pass On’
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How Value Co-creation Can Change Our World of ‘Consume and Dispose’ into ‘Consume and Pass On’
Major industrialized nations currently live in a “consume and dispose” world. This is great for firms’ bottom lines and abstract measures such as GDP, but the social and environmental costs of this way of life have been high – for example, the high price of “fast fashion”. We’re all encouraged to use less and recycle more, but how can we as a society shift to a “consume and pass on” model?
What’s required is for firms and consumers to become equal and active partners in the creating of value, doing so sustainably and independent of ownership. This process is known as value cocreation. Our economic and social system has developed from a goods-for-goods to a goods-for-money exchange system. A society and economy based on value co-creation means that we move on to a service-for-service exchange system, where firms and consumers are equal partners. The firms provide knowledge about a particular trade or good, while customers provide knowledge about the particular expectations, experiences and context in which the good or service will be experienced.
One example is the delivery firm DHL, which regularly brings together its customers and service partners in “innovation centers” to share best practices. Patagonia is a standout in the clothing industry, encouraging customers to co-create value through repair workshops, clothing swaps, and more.
