The Online Store Parents Actually Need

How can a humanitarian organization itself make even more funds available to carry out its social mission, completely in line with its values? By, for example, embracing a circular business model.


2021
Completed

The Opportunity

The Norwegian Red Cross have been handling leftover clothing and textiles through their collection points across the country for years. They thus had a good inkling of the large potential that lies in reusing such items. They did, however, not have the insight nor the circular business model needed in order to realize this potential.

Through a public procurement, ÆRA was dealt the task of designing such a model. One that could provide the humanitarian organization with unrestricted funds to further grow their societal mission, whilst supporting the fundamental values of the Red Cross.

The Way

We firstly conducted a qualitative study to understand the true value of reused clothing and textiles. This resulted in concrete sketches of how the Red Cross’ existing collection points provide a window of circular opportunities. Different target groups and associated business concepts were considered, with one being deemed as particularly enthralling.

Today’s textile industry is responsible for almost 8% of the earth's greenhouse gas emissions, and the average Norwegian owns 80 kilos of clothing – of which one in five garments remain unused.

However, for many families, consumption is, at large, a natural result of kids typically outgrowing 12 sizes before the age of six. They face an inevitable wardrobe turnover, and a great opportunity to pass on items rather than throwing them away.

So, Levd was born: A circular, online store dedicated to parents, ran under the Norwegian Red Cross’ Circular branch. As the name [English: Lived] implies, its purpose is to prolong the oftentimes unnecessarily short lifespan of clothes.

After sorting out items sized age 0-12 from the organization’s textile collection points, Levd quality proves and prepares them for sale in their own facilities. Preparation can mean anything from just a wash to repairing a seam.

Levd currently offers clothes, footwear and accessories. Supply is optimized thanks to insights from customer’s online behaviors predicting what items are in demand.

Rather than creating needs, Levd solely focus on meeting existing ones in a circular way. 100% of the sale profits go to the Red Cross’ humanitarian activities.

“Fortunately, our insights show that parents don’t necessarily have to buy things that are 100% perfect, or 'like new', as long as they serve their purpose. That’s why we focus on transparency. We show imperfections, repair what's worth repairing, and always price fairly. It’s all about knowing what we’re paying for, and feeling like we’ve made a fair trade.”

Hallvard Bache

General Manager, Red Cross Circular & Levd

The Result

Levd was piloted for a year before launching in September 2022, now fully in the hands of the Red Cross as its own business entity.

This simple and efficient way of shopping previously worn clothes and textiles proved popular among parents.

Not long after their official launch, Levd therefore expanded their supply with shoes and accessories in addition to clothing, and is available to use for any Norwegian parent in need of supplying the wardrobes of their young ones at levd.no.

“We want to remain a service people want to use. When parents with young kids need something "new", they’ll go to Levd. That’s the goal. But the biggest possible achievement is us being a piece of a larger movement. One where people buy less, and commercial actors ultimately produce less.”

Hallvard Bache

General Manager, Red Cross Circular & Levd

What We Provided

  • Deep insights and analysis
  • Strategy for sustainable growth
  • Brand purposing
  • Concept development
  • Future business models
  • Organizational design
  • Change agents and advisors

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