Proposed Criteria to Design a Product-Service System Based Circular Business Model for the Apparel Industry

The waste problem in Indonesia until now has become a big problem and has caused environmental disturbances. Based on data from the Ministry of Environment and Forestry regarding marine waste monitoring in Indonesia, the weight of fabric waste in 15 provinces consisting of 16 districts/cities from 2017 to 2019 increased by 6.39% from 0.61% to 7% and ranks the 4th highest percentage of waste. Based on these problems, we need a way to minimize waste and utilize the resources of apparel companies optimally so that a business model design that can solve these problems is needed. To be able to design a business model that can fit the needs of the company but can also meet customer needs, it takes several criteria that match the requirements of the company and customers. In addition, alternative services that have the potential to be applied in apparel companies in Indonesia are also needed. The purpose of this research is to propose criteria for customer and apparel company needs as well as alternative services that can potentially be applied to apparel companies. Based on 10 criteria for company needs, 12 customer needs obtained from the literature and 13 alternative service models, there are 7 criteria selected for the company needs, 7 criteria for customer needs, and 8 alternative service models. The results of this study could be useful decision-makers and practitioners as a reference in designing an apparel business model design by applying the circular principles based on PSS based on the company and customers’ perspective.