The study into resource efficient business models which was released today (October 22), found consumers were interested in using repair, rental, and trade-in services, therefore contributing to a more circular economy.
But, the WRAP research also highlighted such products were in demand only when delivered by trusted, major retailers.
The research, which was conducted between March and May this year, explored reuse retail services in relation to three different types of electrical products: household appliances, such as fridges and hoovers; consumer electronics, such as laptops and television sets; and, DIY & gardening products, including electric drills and hedge trimmers.
Six focus groups across London, Nottingham, and Merthyr Tydfil were asked which of the business models they would be likely to use. The results found around three quarters of consumers were particularly attracted to a trade-in business model for DIY and gardening products, while two thirds were interested in a fixed-price repair model for the same category.
Presence
WRAP went on to surmise consumers were not using existing repair, rental, second-hand or trade-in providers due to a perceived gap in the market, and the need for a better options. These included factors such as a convenient geographical location, improved customer service and a shop rather than online presence.
Previous research conducted by WRAP on electrical and electronic product design also indicated consumers typically associated well-known brands with positive product attributes such as quality, reliability and longevity. Although the focus groups did not universally support major retailers offering alternative business models, they did trust them to deliver a certain level of service.
One key consideration for second-hand and rental models was the age and brand of the product, with consumers willing to pay more for longer standard warranties when buying new products.
WRAP concluded there was significant opportunity for retailers and manufacturers to build on the research findings, with further studies to test consumer attitudes to specific model propositions needed across the sector.
Appetite
Commenting on the research findings, Dr David Moon, head of products and services at WRAP, said: With consumers stating a real appetite for new types of service for acquiring, repairing or trading in their electrical products, this research can really help retailers and manufacturers understand where to focus their attention.
The data show which services are particularly valued, and how to shape them to maximise consumer interest. This means there are viable alternatives to the conventional sell-use-dispose approach to the product life-cycle, delivering environmental as well as economic benefits.
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