The functionality economy replaces the sale of a product with the sale of a service fulfilling the same functions as the product. It is based on the value of using the product and not of owning of the product. In effect, the product remains the property of the producer and its use is invoiced to the customer. The relationship between the supplier and the customer then extends for the duration of the use of the product, and no longer for a single moment during the sale transaction.
This new method of consumption can strengthen a company's market position, encourage local employment and extend the useful life of a product. By optimising the use of material resources, the functionality economy contributes to a more sustainable economy.
For more information:
- FPS Economy, "Vers une Belgique pionnière de l’économie circulaire" (fr) (Towards a Belgium as pioneer in the circular economy) (2014)