Resource Efficient Business Models: Consumer research

Our research shows that there is consumer interest in resource efficient business models which contribute to a circular economy by keeping products in circulation for longer.

Consumers have a strong preference for buying and owning new products. However our research found that there is a strong appetite for repair and rental services, trade-in and purchasing second-hand when delivered by trusted, major retailers.

The research shows on average almost two thirds of consumers* said they would be likely to use the services if they were delivered by DIY retailers, specialist electrical retailers and manufacturers.

The Report is available on the right hand side under Related Documents.  (You will need to register to download.) 

Contact us if you are interested in exploring Resource Efficient Business Models. We’re already providing businesses and their supply chains with practical support to implement ways of working that keep products in use for longer.

Consumer research - key findings

The research explored business models for three types of electrical products:

  • Household appliances - fridges, washing machines and vacuum cleaners.
  • Consumer electronics - TVs, laptops and tablets.
  • DIY & Gardening products - drills, chainsaws and hedge trimmers.

Consumers were particularly attracted to:

Trade-in for consumer electronics and DIY and gardening products 

  • Consumer electronics: between 64% and 74% of consumers would consider using a trade-in service delivered by a major retailer (depending on the product). 28% said they have products at home they could trade-in. 
  • DIY and gardening: 75% of consumers would consider using a trade-in service delivered by a major retailer. 35% said they have products at home they could trade-in.

Fixed-price repair model for household appliances

  • 71% of consumers said they willing to pay to use this service for washing machines, 67% for fridges and 56% for vacuum cleaners.
  • Consumers would be most likely to use this this service if it was delivered by a manufacturer. The majority would be likely to use it if it was delivered by a specialist electronics retailer.

Renting DIY and gardening products 

  • Around 1 in 5 consumers (19%) already rent DIY and gardening of products 
  • 70% said they would be likely or very likely to rent a well-known brand
  • Consumers said they would be most likely to use this service if it was delivered by a DIY retailer.

Consumer interest in other product-service combinations, key considerations for how the models could operate and suggestions for further consumer research is detailed in the report.

 

 

*Mean average was 62%. The % of consumers who said they would be likely to use the different services for each product type ranged from 34% to 80%, with 7 of the 9 services having more than 50% of consumers say they would be likely to use them.