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DNVB and the Circular Economy?

16 min read

For the past decade, a new entrepreneurial model has been establishing itself in the brand landscape: DNVBs, or Digital Native Vertical Brands.

Born on the internet, designed for digital, and often obsessed with customer experience, these brands are disrupting the codes of traditional distribution.

But behind this digital success, we see another dimension emerging, more sustainable, more committed: their natural compatibility with the circular economy.

What is a DNVB?

A Digital Native Vertical Brand is a brand that:

  • Is born and grows exclusively online
  • Controls its entire value chain (from design to sales)
  • Places customer experience at the heart of its strategy
  • Uses data extensively to optimize its performance

Crucial challenge for brands

In a context where 73% of consumers are willing to pay more for sustainable products, understanding this model becomes a decisive competitive advantage.

Why DNVBs are revolutionizing responsible consumption

DNVBs don't just sell online. They completely rethink the brand-consumer relationship.

This disruptive approach gives them unique advantages for integrating sustainable practices from their inception.

DNVB AdvantageImpact on circular economy
Total chain controlFlow optimization, waste reduction
Direct customer relationshipEducation on responsible practices
Structural agilityRapid adaptation to sustainable challenges
Data-drivenPrecise measurement of environmental impact

Why this article will interest you

Discover how DNVBs are revolutionizing responsible consumption and why they are best positioned to embody tomorrow's circular economy.

The key questions we'll explore

How do these young brands reconcile commerce and environmental consciousness?

We'll analyze the concrete strategies implemented by leading DNVBs to combine economic performance with positive impact.

Why are they so well positioned to embody more sober and responsible consumption?

Their native digital structure gives them structural advantages that traditional brands struggle to match.

How does their very structure facilitate the adoption of circular practices?

From product design to customer relations, every step of their model favors the integration of sustainable principles.

What you'll discover

  • 5 structural advantages of DNVBs for the circular economy
  • Concrete examples of brands successfully making this transition
  • Specific challenges to overcome and their solutions
  • A practical roadmap for implementing these strategies

What exactly is a DNVB?

Let's start with the basics: DNVB stands for Digital Native Vertical Brand.

In other words, brands born on the internet, which master their entire value chain – from product design to delivery to the end customer.

No intermediary, no distributor. These brands are also called "Direct To Consumer" (DTC).

Key definition

A DNVB is a native digital brand that controls its entire value chain, from design to delivery, without intermediaries.

The distinctive characteristics of the DNVB model

The DNVB model differs radically from traditional approaches through several fundamental aspects:

AspectDNVB/DTCTraditional model
DistributionDirect to consumerVia distributors/retailers
Quality controlTotal across the entire chainShared with partners
Customer relationshipDirect and personalizedFiltered by intermediaries
AgilityRapid testing, easy pivotsLong and rigid processes
Customer dataComplete ownershipLimited or no access
MarginsOptimized without intermediariesReduced by commissions
InnovationReactive to customer needsConstrained by distributors

This unique architecture gives DNVBs decisive competitive advantages in a constantly evolving market.

Competitive advantages of the DNVB model

  • More quality control: total mastery of the production chain
  • Direct relationship with customers: immediate feedback and personalization
  • Ability to test quickly new products without distributor constraints
  • Operational agility difficult to match for traditional players
  • Optimized margins: elimination of intermediaries
  • Proprietary data: in-depth knowledge of customer behaviors

Agility as a catalyst for circular transition

And it's precisely this agility that allows them today to anchor themselves in circular logic.

This structural flexibility becomes a major asset for integrating sustainable practices.

Without the constraints of traditional distribution channels, DNVBs can quickly adapt their processes to circular economy requirements.

Attention to DNVB model challenges

Despite its advantages, the DNVB model presents specific challenges:

  • Customer acquisition costs often high
  • Dependence on digital platforms (Google, Facebook, etc.)
  • Need for operational excellence across all links
  • Constant pressure on innovation for products and experience

Natural compatibility with the circular economy

The circular economy is based on a simple principle: produce less, but better.

It aims to extend product lifespans by favoring their reuse, repair, or recycling.

The goal: avoid waste at every stage of the product lifecycle.

DNVBs: pioneers of the circular economy

When you look closely at DNVBs, you realize they have often integrated these reflexes from their creation.

This natural compatibility is not coincidental. It stems from their very DNA and their fundamentally different business approach.

This synergy is explained by several structural factors that distinguish them from traditional commerce:

  • Optimized inventory management: they avoid massive unnecessary stocks through lean flow models
  • Ethical positioning focused on transparency, traceability, and waste reduction
  • Structural agility: they can quickly pivot toward more sustainable practices without organizational heaviness
  • No legacy constraints: no need to reorganize a sprawling logistics chain inherited from the past
  • Direct customer relationship: ability to educate and raise awareness about responsible practices
  • Innovation by necessity: obligation to differentiate pushes toward creative and sustainable solutions

Comparison of approaches: DNVBs vs Traditional commerce

CriteriaDNVBsTraditional commerce
Inventory managementLean flows, production on demandMassive stocks, overproduction
Product cycleDurable products, limited collectionsFrequent renewal, obsolescence
TransparencyDirect communication on impactOpacity in the value chain
AdaptabilityRapid pivot toward sustainabilityInertia of existing structures
Customer relationshipEducation on responsible practicesFocus on consumption
InnovationContinuous experimentationLong and rigid processes
Impact measurementIntegrated sustainability KPIsFinancial indicators priority

Concrete example: Loom

Loom, a French clothing brand, was designed from the start to fight against fast fashion.

Their circular approach:

  • Few collections to avoid overproduction
  • Clothing designed to last over time
  • Eco-responsible materials prioritized
  • Educational communication on textile industry impacts
  • Program for taking back old clothing

A typical DNVB model… but with circular economy woven throughout.

Decisive competitive advantage

This natural compatibility with the circular economy becomes a real competitive differentiator for DNVBs.

They can respond to consumers' growing expectations regarding sustainability without having to radically transform their business model.

Result: A head start over traditional players who still need to undergo their ecological transformation.

Beware of false appearances

Not all DNVBs are automatically virtuous. Some may fall into greenwashing or adopt unsustainable practices to accelerate their growth.

Natural compatibility is only a potential to exploit, not an automatic guarantee of sustainability.

Manufacturing less, but manufacturing better

One of the great strengths of DNVBs is that they can produce on demand, or at least in lean flows.

This logic limits unsold items, production surpluses, massive sales that destroy perceived value… and waste.

Key competitive advantage

Production on demand allows DNVBs to drastically reduce their storage costs while preserving their premium brand image.

Innovative models of responsible production

Some brands go further and even launch models based on pre-orders or product crowdfunding.

Asphalte, an emblematic French example, perfectly illustrates this approach. The brand only launches production once orders are collected.

This allows manufacturing only what has been ordered, no more, no less. A real advance in terms of industrial sobriety.

Traditional modelResponsible DNVB model
Mass production → Stock → SaleOrder → Production → Delivery
High risk of unsold itemsZero unsold
Value-destroying salesStable price all year
Strong environmental impactReduced carbon footprint

Usage economy and integrated services

Others adopt even more circular models that transform the customer relationship.

These approaches revolutionize the traditional shopping experience:

  • Subscription model to spread usage over time
  • Integrated second-hand (Jimmy Fairly takes back your old glasses)
  • Lifetime repair guarantee to maximize usage duration

These long-cycle logics fit perfectly into circular philosophy.

Circular economy in action

These integrated services create a lasting relationship with the customer while reducing environmental impact. The customer becomes a partner in the responsible approach.

Measurable impact of this transformation

This approach generates concrete and quantifiable results for brands that adopt it.

Measurable benefits of this approach:

  • Waste reduction: up to 80% fewer unsold items
  • Customer loyalty: 40% higher retention rate
  • Cost optimization: 25% savings on storage costs
  • Brand image: reinforced premium positioning

Point of attention

Implementing these models requires a complete overhaul of logistics processes and transparent communication about longer delivery times.

Customer relationship: a lever for circularity

Another strength of DNVBs: their proximity to their customers.

This direct relationship allows for easy awareness-raising about more sustainable practices. Brands can thus transform their customers into true actors of circularity.

Encouraged practices include:

  • Return of end-of-life products for recycling or refurbishment
  • Repair instead of systematic replacement
  • Rental or subscription rather than definitive purchase
  • Preventive maintenance to extend lifespan

Maximize customer relationship impact

Proximity to your customers is not just a commercial advantage. It's a powerful lever for transforming consumption behaviors and creating a true culture of circularity.

Education as a pillar of circularity

Some brands like Les Récupérables or Le Pavé don't just sell.

They explain, they tell stories, they educate their communities about environmental issues. This educational approach radically transforms the brand-customer relationship.

And this storytelling, well anchored in a strong community relationship, is an integral part of the circular economy.

It restores value to usage, maintenance, transmission rather than pure possession. This philosophy disrupts traditional consumption codes.

Traditional approachEducational DNVB approach
Sell the productTransmit values
Unidirectional communicationDialogue with the community
Focus on possessionValorization of usage
Systematic replacementCulture of repair

Education, a profitable investment

Brands that invest in customer education observe increased loyalty and positive word-of-mouth. Education transforms buyers into ambassadors of your circular values.

Beware of inconsistencies

An educational strategy must be consistent with your internal practices. Consumers quickly detect discourse not aligned with the company's real actions.

The example of DNVBs in furniture, tech, or textiles

Furniture sector

The furniture sector is particularly interesting to observe. It perfectly illustrates how DNVBs are reinventing traditional business models.

DNVBs like Move & Rent or Camif propose renting furniture rather than buying it. This approach completely revolutionizes the relationship to ownership in this sector historically based on purchase.

A usage economy logic that perfectly fits the values of new generations. These consumers primarily seek:

  • Flexibility in their furniture choices
  • Reduced environmental impact
  • The ability to change easily according to their needs

More mobile, more conscious of their impact, they prioritize access over ownership. This trend fundamentally transforms the sector's revenue models.

Advantages of furniture rental

  • Flexibility: Easy change according to needs
  • Reduced impact: 70% reduction in carbon footprint
  • Accessibility: No significant initial investment
  • Maintenance included: Integrated after-sales service

Tech sector

In tech, some DNVBs specializing in smartphone refurbishment build their entire offer on circularity. They transform potential waste into commercial opportunity.

Back Market perfectly illustrates this approach: repair and extension of device lifespans. The platform has democratized the purchase of refurbished tech products by offering:

  • Extended warranties on refurbished products
  • A rigorous certification process
  • Attractive prices (up to -70% vs new)

Others like Murfy for appliances propose subscription to refurbished products. This hybrid model combines circular economy and revenue recurrence.

Impact of tech refurbishment

Refurbishment allows extending the average lifespan of smartphones by +18 months, thus avoiding the production of millions of new devices each year.

Textile sector

In textiles, brands like 1083 or Hopaal experiment with recycling their own clothing. This approach goes beyond simple external recycling.

They thus close the loop in a virtuous way, creating a closed ecosystem. The customer becomes an integral part of the brand's circularity process through:

  • Used clothing take-back programs
  • Transformation into new textile fibers
  • Creation of new collections from recycled materials

Circular textile challenge

The textile sector remains one of the most polluting in the world. Closed-loop recycling initiatives represent less than 1% of global production, but show the way toward a more sustainable model.

Comparison of circular models by sector:

SectorBrandCircular innovationMeasured impactBusiness model
FurnitureMove & RentFurniture rental-70% carbon footprintMonthly subscription
FurnitureCamifUsage economyFacilitated mobilityRental + services
TechBack MarketSmartphone refurbishment+18 months lifespanMarketplace + warranty
TechMurfyAppliance subscription-60% environmental impactAll-inclusive subscription
Textile1083Own clothing recyclingClosed loopSale + take-back
TextileHopaal100% recycled materialsZero textile wasteDirect-to-consumer

Key lessons for DNVBs

These examples demonstrate that the circular economy is not just an environmental constraint, but a real opportunity for:

  • Strong competitive differentiation in the market
  • Innovation in traditional business models
  • Value creation for conscious consumers
  • Long-term cost reduction through resource optimization

An agile structure, digital DNA, long-term vision

What makes DNVBs particularly compatible with the circular economy is their ability to test, measure, adjust.

Unlike traditional players, they don't carry the weight of inherited structures.

No chain of stores to restructure. No distributor partners to convince.

They have free hands to experiment with new formats, materials, return circuits, or business models.

Decisive competitive advantage

Because they were born in a world in transition, DNVBs often integrate from the origin an environmental dimension into their business model.

Not as a marketing gimmick, but as an intrinsic requirement of their value proposition.

Result: they are naturally aligned with the expectations of tomorrow's conscious consumers.

Structural assets of DNVBs for circularity

Native digital brands have unique advantages for implementing circular strategies:

  • Operational flexibility: rapid pivot toward new models
  • Data-driven: precise measurement of each initiative's impact
  • Innovation culture: permanent experimentation
  • Long-term vision: building sustainable brands

This combination of assets allows them to quickly transform their operations.

Where a traditional brand will take months to validate a change, a DNVB can implement it in a few weeks.

Agility as a transformation driver

This structural agility allows DNVBs to react quickly to market signals.

They can test a take-back program in a few weeks, adjust their packaging in real-time, or launch an eco-designed range without waiting for complex validation cycles.

Concrete example: A DNVB can A/B test two versions of its loyalty program - one based on purchases, the other on returns of used products - and continuously optimize based on results.

Digital DNA: a circularity accelerator

The digital DNA of DNVBs gives them unique capabilities to create connected circular ecosystems.

They can easily integrate advanced functionalities into their customer journey:

  • Real-time product traceability
  • Automated return programs
  • Integrated second-life marketplace
  • Personalized impact scoring

This native digital integration facilitates the emergence of new models like "Product-as-a-Service" or automated take-back programs.

Comparison: DNVBs vs Traditional brands

CriteriaDNVBsTraditional brands
Decision timeA few weeksSeveral months/years
Experimentation costLowHigh
Resistance to changeMinimalStrong (legacy systems)
Impact measurementReal-timeDeferred
Product adaptationAgileRigid
Tech integrationNativeComplex
Innovation cultureIntrinsicTo develop

Long-term vision: building to last

DNVBs don't just optimize the short term.

They build brands designed to span decades, anticipating regulatory and societal evolutions.

This long-term vision naturally pushes them toward sustainable models:

  • R&D investment in bio-sourced materials
  • Strategic partnerships with circular economy players
  • Team training on environmental issues
  • Total transparency on product impact

The advantage of a blank page

Unlike established brands, DNVBs start from a blank page.

They can integrate from the design of their business model the constraints and opportunities of the circular economy, without having to deconstruct decades of habits and infrastructure.

This design freedom gives them a lasting competitive advantage over traditional players.

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DNVB and Circular Economy: The Perfect Match | ZIQY Blog