Efforts and Challenges by CLAS for Social Implementation of the PaaS （Product as a Service） Business Concept

Abstract

This paper discusses the various challenges surrounding social implementation of a circular economy （CE）, especially as they relate to the efforts of CLAS. Social implementation of CE is defined by five factors: Widespread adoption; Realization of social benefits; Economic independence; Integration into social systems; and Development of related systems. The concept of PaaS for durable consumer goods is still yet not well known, nor has it been widely adopted. Achieving economic independence requires substantial investment and time, though investment and financing tends to be cautious due to concerns about market size. Furthermore, the absence of infrastructure for procuring, delivering, and collecting circular products poses an additional barrier to entry when integrating into social systems. CLAS provides expensive consumer durables on a monthly basis while also facilitating returns, purchases and assetization. There are also discounts offered for long-term use. This is all to ensure economic efficiency through its systems and operational infrastructure. The company aims to improve inventory utilization rates and reduce sales/administrative expenses. CLAS also promotes the development of its own circular products, contributing to decarbonisation, and waste/resource reduction.

　While the development of CE is important, market awareness is ambiguous, and will therefore require collaboration between the public, private, and academic sectors.