Hakuhodo SX Professionals Launches "Hakuhodo SXP Circular Solutions" in Collaboration with Three Group Companies to Support Corporate Transition to Circular Economy

Hakuhodo SX Professionals, part of Hakuhodo Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Kenji Nagura; hereinafter referred to as Hakuhodo), is launching "Hakuhodo SXP Circular Solutions," a comprehensive solution to support companies' transition to a circular economy, in collaboration with Hakuhodo Products Inc., Hakuhodo Gravity Inc., and Hakuhodo DY ONE Inc.

In developing this solution, we have partnered with Artiql Inc. (formerly Harch Inc.; Headquarters: Minato-ku, Tokyo; Representative Director: Yu Kato), which possesses expertise in the circular economy field, to newly develop the UX planning model "Circular Value Circle," which creates value for both consumers and companies. By incorporating this model, based on "consumer insights," at the core of our support, we aim to assist and promote the transition to co-creative businesses where companies and consumers jointly circulate resources.

Touchpoints Between Consumers and Companies Changing with the Circular Economy

Against the backdrop of rising crude oil prices due to recent geopolitical risks and difficulties in procuring underground resources, including rare minerals, the transition to a "circular economy"—where resources are circulated and business models are shifted to sustainable ones—has become an urgent task for companies.

By shifting from the conventional "linear" model of resource extraction, manufacturing, consumption, and disposal to a "circular" model involving resource circulation processes such as sharing, reuse, repair, remanufacturing, and recycling, new brand touchpoints are emerging between companies and consumers that did not exist before. The key to future business success lies in co-creating valuable UX (customer experiences) at each touchpoint with consumers, viewing them not just as "end consumers" but as "co-creation partners" involved in distribution and resource recovery.

Features of "Hakuhodo SXP Circular Solutions"

This solution is a collaborative effort by four companies within the Hakuhodo DY Group, led by Hakuhodo SX Professionals, to implement co-creation of resource circulation between consumers and companies, thereby supporting the transition to a circular business model.

Utilization of the UX Planning Model "Circular Value Circle"

In collaboration with Artiql Inc. (formerly Harch Inc.), a leading company in the circular economy field in Japan, we have developed the proprietary UX planning model "Circular Value Circle." This model categorizes 30 types of motivations for consumers to cooperate with the circular economy into "8 Consumer Values" such as "enjoyable," "profitable," "secure," and "self-fulfillment and growth." It systematizes the structure where consumers' participation in the co-creation loop, driven by perceived benefits, leads to "4 Corporate Values" including sales expansion, risk reduction, brand strengthening, and cost savings, and is utilized for planning circular UX based on consumer insights.

Four Service Areas:

1. Consulting for Circular Business 2. Development of Circular Products Utilizing Recycled Materials, etc. 3. Support for Circular Marketing / UX Development 4. Support for Building Resource Circulation Systems

Roles of Each Hakuhodo DY Group Company:

Hakuhodo (Hakuhodo SX Professionals): Business design and consulting, strategy formulation using the Circular Value Circle, and integrated communication design.

Hakuhodo Products Inc.: Responsible for implementing circular UX at consumer touchpoints through product development using recycled materials, and planning, production, and promotion of store experiences and pop-ups for repair, recycling, etc.

Hakuhodo Gravity Inc.: Creates natural circular actions that resonate with consumer sensibilities by designing and executing communication strategies that combine expertise and trends in the fashion and lifestyle domains.

Hakuhodo DY ONE Inc.: Collects and analyzes consumer data at digital touchpoints, builds digital platforms that encourage consumer circular actions, and provides digital media integration solutions.

Hakuhodo SX Professionals will continue to contribute to the creation of value that balances both social and economic impact (double impact) for companies, starting from consumer insights.

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About Artiql Inc. (formerly Harch Inc.):

A creative company with leading expertise in Japan in the fields of circular economy and sustainability. It systematizes advanced global case studies and the theory of "circular design," which is essential for building circular business models, and promotes co-creation projects for business creation and organizational transformation for companies.

https://artiql.jp/