Product life cycles
Sustainability and production can go hand-in-hand
Reading time: 9 min
The European sustainable development strategy includes the circular economy as one of its key elements to promote competitiveness, generate employment, and foster economic growth without compromising the possibilities of future generations. In the transition towards a decarbonized economy that combats global warming, companies seek the way to increase the life cycle of their products with the aim of using natural resources efficiently and minimizing the generation of waste.
What is a product life cycle?
The life cycle of a product refers to the stages any commercial item goes through from its inception to its withdrawal from the market.
This concept is born from the analogy between the evolution of human beings and that of products, as both go through distinct stages throughout their existence. A living being's life cycle passes through birth, adolescence, adulthood, old age, and death.
Commercial items follow a similar evolution that comprises the five stages of a product's life cycle, which we will review below.
Five stages of a product’s life cycle
1. Development
Development is the moment of materializing the idea. It encompasses all the activities involved to obtain raw materials and their subsequent treatment to give shape to the designed item. To make this process more sustainable, it is necessary to commit to renewable energy and biodegradable materials, as well as to develop efficient low-emissions logistics.
2. Market introduction/launch
The launch is the second stage of a product life cycle and marks the moment in which the item is introduced onto the market. Even though in these early market penetration stages sales may not be very high, companies make a huge investment in advertisement to ensure the product reaches the consumer. Developing promotional campaigns that are committed to sustainability — for example, with electronic media or biodegradable promotional materials— is critical to guarantee a low carbon footprint throughout the value chain.
3. Growth
Within the market stages, growth refers to the sales acceleration period. It is the most strategic stage of the life cycle of a product because at this point the company can differentiate itself from the competition through its brand image. To increase commercialization, logistics can play a crucial role. It is the time to design a sustainable distribution model, guarantee the sustainability of the supply chain, and offset or reduce CO2 emissions.
4. Maturity
In the maturity stage, the market already knows the product well and is adapting to its use. It is important to analyze the degree of customer satisfaction to see if the item continues to meet their expectations or if new features should be developed. Technology and the different types of innovation are key elements that can adapt it to the needs of the market and extend its useful life. Many of the so-called professions of the future focus on this area.
5. Decline
For different reasons, a time comes in which consumers decide to stop using a product and sales plummet. The time comes to take it off the market bit by bit or adapt it to give rise to a new product. The item has met its function and if we have committed to sustainability throughout all stages, it will be easy to recycle both the materials and the infrastructures to give them a new life.
Why do products have a limited life?
In the production and consumption models based on a linear economy of “use and throw away”, the life cycle of a product ends either because of the breakthrough of new technologies, change in consumer habits, or planned obsolescence, which deliberately limits its useful life. In essence, it is a commercial strategy that seeks to instill in the consumer the desire to own something a little newer, a little better, and a little sooner than necessary.
More innovative models emerge
As technology develops and reaches greater levels of sophistication, certain digital developments become obsolete or are no longer attractive to the user.
Change of habits in the consumer's life
Digitalization and global access to information make consumers' tastes change at breakneck speed. Many also seek brands that share their vision of the world, which may vary as time goes by.
Seasonality
On the market we can find certain products that have limitations of use to some specific periods of the year, thus shortening their life cycle.
Planned obsolescence
Before planned obsolescence was an idea, products stopped working due to natural wear and tear caused by use. But currently, some companies design their items so that they are obsolete in a predetermined time period.
The circular economy seeks to create value from the first stage of the life cycle of a product so that it can easily adapt to the breakthrough of new technologies (like the so-called disruptive technologies), the appearance of new materials such as graphene, the change in consumer habits, or its reuse when it enters the decline stage. Specifically, it seeks to make the life cycle of the product longer to make it more sustainable. This must be one of the major goals for the so-called Fourth Industrial Revolution that we are currently experiencing.
Examples of product life cycle
The sustainability assessment of the life cycle of a product is part of a company’s commitment to the transition towards a low-emissions circular economy. This analysis, defined in the United Nations Environment Program, describes all environmental, social, and economic impacts in the decision-making process for the development of sustainable products and services throughout their entire life cycle.
At Repsol, we apply circular economy principles throughout the entire production cycle, from the source to the commercialization of our products and services. Through ecodesign, we incorporate circular criteria from the earliest stages, such as the conceptualization of our products, to extend their useful life and be able to recycle their components in the final stage, including bottles. Likewise, we promote responsible consumption and the collaborative economy through initiatives such as Wible.
More sustainable packaging
We apply reverse logistics with our packaging and the packaging of our lubricants business unit is already 100% recyclable and contains 40% recycled plastic.
Fuel from waste
Thanks to the commitment to innovation and technology from our Repsol Technology Lab, we can make the most of the energy remaining in urban waste that has reached the end of its useful life in order to produce biojet fuel and biogas, thus achieving what is known as zero emissions synthetic fuels.
We foster responsible consumption
We promote initiatives that prioritze renting over buying such as WeSmartPark, a platform that allows private parking to be shared between its users in various cities throughout the world, and WiBLE, the carsharing service promoted by Repsol and Kia.
