The global shift towards a Circular Economy is becoming increasingly critical as industries face growing pressures related to resource scarcity, waste generation, and climate change. While companies like IKEA are actively committing to circular goals, consumer engagement remains one of the key barriers to closing the circular loop. This project explores the barriers and drivers that shape consumer participation in circular initiatives within the furniture sector, with a focus on two contrasting contexts - Sweden (Global North) and India (Global South).

Using IKEA as a case company, the study employs an interdisciplinary research approach drawing on Circular Economy theory, Socio-technical theory, the concept of value-action gap, nudge theory, and service design. Methods include benchmarking, field study, comparative case study, semi-structured interviews, persona development, user journey mapping, and prototyping, structured within the Double Diamond framework.

The findings reveal that low awareness and inconvenience are the primary barriers preventing IKEA India consumers from engaging with circular services. In response, the project proposes a consumer-centric service design solution across three interrelated touchpoints - a social media awareness campaign, visual communication and spatial planning at the store, and a UX feature called the IKEA Furniture Bank, integrated into IKEA's existing app and website to provide easy post-purchase access to circular services. Designed to guide consumers into the circular loop through convenience and nudging. Together, these aim to bridge the gap between consumers and circular services, reduce the value-action gap, support behavioral change and guide consumers into the circular loop. Ultimately, through the agency of IKEA, the proposal aims to shift the mindset of Indian consumers by raising awareness towards circularity and encouraging more circular behaviours, making sustainability an effortless choice.