Stimulating circulation in the circular economy: A case study of value generation for a resale platform for LEGO bricks

This study investigates the circulation of used LEGO products and the role of circular business models that support peer-to-peer (P2P) resale, as an exemplary case in the toy industry, which generates large amounts of plastic waste. The LEGO Group is an example of a company that manufactures a durable, mono-material, modular product (LEGO bricks) well-suited for the circular economy. Yet, it estimates that only 3% of all LEGO bricks are available for circulation or resale. What could a successful peer to peer (P2P) toy resale system look like for a toy company like the LEGO Group? A single case study focuses on BrickLink, the world's largest P2P resale platform for used LEGO products. Mixed methods were selected to include multiple stakeholders and for the logic of data triangulation. The study gathers qualitative insights on how to enhance the resale of used LEGO items through interviews with BrickLink employees and resellers, followed by a validating quantitative survey of 1238 LEGO consumers. The results reveal that 40% of respondents would resell LEGO bricks they no longer wanted, and consumers are more likely to engage in resale when they better understand the financial value of the products. A spectrum of value-adding activities to help prompt resale, either performed by consumers, intermediaries, or manufacturers, was developed. These activities helped shape potential circular business models: 'resale value-adding', 'sorter/curator', 'completer', and 'manufacturer-enabled resale platform'. The findings increase the knowledge base on how to successfully increase the circulation of toys and reuse products through circular business models.