Trish Tacoma, the owner of Smoking Lilly, seen here on Feb. 12, 2020, and her 'take-back project' was a pilot to test the sustainability of and consumer interest in selling goods into what’s known as the circular economy.Melissa Renwick/The Globe and Mail
There’s little that Trish Tacoma can do from her small design studio in Victoria to fight the devastating wildfires in Australia or slow the rapid glacial melt in Antarctica. However, the owner of the Smoking Lily clothing and accessories brand is trying to do her part to combat climate change.
For the first two weeks in February, the business took back used Smoking Lily-label items from its customers, regardless of the condition. Customers received a $5 credit for each piece, which can be used toward their next purchase at the retailer, which has stores in Victoria and Vancouver as well as an online shop.
Ms. Tacoma and her team plan to wash the used items and either resell the pieces in good condition or make new items out of those that are out of style or need to be repaired. The used clothing will then be sold at a pop-up event, with proceeds going to a yet-to-be-named charity. Ms. Tacoma estimates the company received more than 400 used items from customers between Feb. 1 to 15.
The Smoking Lilly clothing store on Government Street, in Victoria.Melissa Renwick/The Globe and Mail
"It's about what I can do with my business, in my backyard, to make my community better and to help reduce waste," Ms. Tacoma says.
Smoking Lily’s “take-back project” was a pilot to test the sustainability of and consumer interest in selling goods into what’s known as the circular economy, which is the continual use of resources to reduce waste.
She’s not alone. A growing number of companies are looking for innovative ways to contribute to the circular economy, either as part of their business or as a business model, says Moren Lévesque, a professor who teaches entrepreneurship at York University’s Schulich School of Business in Toronto.
Examples include a number of new businesses that enable consumers to rent clothing and accessories, instead of buying; companies that turn food scraps into products such as clothing and packaging; or those that refurbish materials, such as rubber from used tires, into consumer goods.
Consumers today are also more willing than in the past to purchase used items and recycle goods to participate in the circular economy.
Melissa Renwick/The Globe and Mail
A seamstress sews Smoking Lilly apparel within the studio on Wharf Street, in Victoria.Melissa Renwick/The Globe and Mail
“The shift is surely there,” says Prof. Lévesque.
Montreal-based Loop Mission Inc. was founded on the circular economy principle, using ''discarded, but still-consumable" fruits and vegetables to make cold-pressed juices and other products, says co-founder David Côté.
The company takes the imperfect products destined for landfill and makes Loop-brand juice as well some newer products such as beer, gin and dog treats. Loop has also launched a line of soap made from discarded organic sunflower cooking oil that came from a vegan fast-food chain.
“We went from a juice company to a circular economy company,” says Mr. Côté, who started Loop in mid-2016 with his wife, Julie Poitras-Saulnier. “We take any kinds of food from the industry and turn it into something we can put back into the market.”
Mr. Côté says the company’s biggest fear, at first, was having enough supply to expand its product offerings, which turned out to be non-issue given the growing amount of food waste in Canada. There was also a concern that customers would think the fruit they use is rotten.
“We were scared of how the customers would take it,” says Mr. Côté.
Mr. Côté says Loop gets its products from major food distributors, such as Quebec-based Courchesne Larose Ltd., and directly from farmers who have to discard the items before they reach grocery stores, either because they’re too ripe or don’t look appealing to consumers. Loop says it has “rescued” more than 3,400 tonnes of food waste since the company started.
Clothing designs inside the Smoking Lilly's studio on Wharf Street.Melissa Renwick/The Globe and Mail
A circular economy startup is easier to get off the ground, Mr. Côté says, because there are already partners looking for alternatives for their unused products. It's also rewarding for both business owners to be reducing waste.
"You really feel good about what you're doing every single day," he says.
Hamilton-based Refficient Inc. was founded in 2010 by chief executive officer Stephanie McLarty as a way for companies, mostly in the telecom sector, to recycle their old equipment, such as network infrastructure, switches or routers. Refficient buys the used products, refurbishes and then resells them. Any equipment that can’t be fixed is recycled.
"Companies want to do the right thing with their old equipment but don't necessarily have the tools and know-how to do it," Ms. McLarty says.
Her working background is at large North American telecom companies, where she witnessed challenges with managing surplus inventory, including equipment considered out of date but still with life in it.
"Most companies don't know what they have," says Ms. McLarty, who saw a lot of usable parts and equipment tossed out. "It drove me nuts seeing perfectly good product going to waste."
If the pilot project were to turn into a regular line of business, it would mean potentially hiring another person.Melissa Renwick/The Globe and Mail
Ms. McLarty says her buyers tend to be smaller companies looking for slightly used equipment at more affordable prices and wanting to participate in the circular economy.
Being part of the circular economy is noble, but it doesn’t always come cheaply for business owners. Throwing away products can sometimes be easier and cheaper.
At Smoking Lily, for example, Ms. Tacoma says there are extra costs, such as labour and supplies, to take back and rework the used clothing.
If the pilot project were to turn into a regular line of business, it would mean potentially hiring another person to manage the incoming product and crafting new items. It would also need to make business sense, Ms. Tacoma says.
“I hope it becomes a regular thing for us, and not just a pilot project,” she says. “I also hope other stores do something also and it becomes the norm, where you can return your clothes like you return your bottles.”
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