Refill Revolution: How Design Thinking Can Reshape Sustainable Retail

Siklus Refill Indonesia encountered challenges due to a regulation from the Food and Drug Supervisory Agency (BPOM) restricting the sale of personal care products that directly contact skin. To adapt, Siklus is transitioning to a new business model using the design thinking concept and focusing on a 'return from home' approach, aiming to make everyday necessities more affordable. This involves reducing packaging costs and offering lower prices to consumers, showcasing its adaptability to regulatory changes and market demands.

The design thinking concept helps create sustainable retail models by focusing on customer needs, generating innovative business ideas, and creating and testing prototypes. This approach includes five stages: Empathize, Define, Ideate, Prototype, and Test. By understanding what customers want and what is technically and financially feasible, businesses can create value while also supporting environmental goals. This ensures that the solutions are not only innovative but also profitable, viable, and desirable for consumers, as seen in the Siklus example.

The design thinking process involves five key stages: Empathize, Define, Ideate, Prototype, and Test. The 'Empathize' stage involves understanding customers and their needs. 'Define' involves gaining a deeper understanding of customer thoughts, feelings, and experiences. 'Ideate' focuses on brainstorming and generating innovative solutions. 'Prototype' involves developing a prototype of the product or service, and 'Test' is about testing the prototype with users and gathering feedback. These stages guide businesses like Siklus in creating sustainable retail models by ensuring solutions are customer-centric and viable.

Siklus is implementing the design thinking concept by transitioning to a 'return from home' business model. The key benefits include making everyday necessities more affordable by reducing packaging costs. This approach aligns with the design thinking process's goal to balance customer desires with technical and financial viability. By focusing on customer needs and creating a sustainable retail model, Siklus aims to provide value to its customers while also reducing its environmental impact, specifically by addressing the problem of waste, especially plastic from single-use packaging.

The 'return from home' model is central to Siklus's sustainability efforts, as it allows the company to reduce packaging waste significantly. By encouraging customers to return containers, Siklus promotes a circular economy and lowers the cost of products. This model directly impacts customer engagement by offering more affordable products and fostering a sense of environmental responsibility. This shift supports the creation of a sustainable retail model by creating a customer-centric approach that directly addresses waste reduction and promotes environmental goals.