How Circular Procurement can Benefit From Changing Attitudes

Market research by Miele, which is recognised as the world's leading supplier of premium domestic appliances, with an inspiring portfolio for the kitchen, laundry and floor care, shows that a large proportion of buyers trust recycled or refurbished domestic appliances, following the survey of 1,000 men and women in Germany.

This support for the practice is of huge importance to both sustainability and circular procurement.

Circular procurement involves purchasing goods and services that support the circular economy by reducing waste and environmental impact. The results of this survey highlight consumer acceptance of circular practices, which procurement can capitalise on by integrating circular principles into their purchasing strategies.

Buying refurbished highlights the importance of savings for customers.

The study investigates what people know about the circularity of domestic appliances such as washing machines, ovens and vacuum cleaners, and how accepting they are of it.

Mindsets are changing

As 21% of people asked are familiar with the idea of circularity, more than a third rightly connected it with recycling (42%) or circular economy (41%), showcasing the understanding from people towards circular practices.

More than three-quarters of those spoken to are trusting in the durability of domestic appliances containing recycled materials (73%) or refurbished components (65%).

When it comes to motivators for adopting circular practices and reusing rather than making new, producing less waste and saving on resources (89% each) are key.

This should be a signpost to procurement leaders that customers' attitudes are shifting, and are far more accepting of these circular practices – allowing procurement teams to shift how they operate, and change their strategies, such as selecting suppliers who can provide these circular solutions and products created with longevity and recycled materials in mind.

Despite this more accepting thought towards the use of circular practices, there remain some barriers for teams to address. Almost two-thirds of the people surveyed are worried about issues such as quality defects (62%). While limitations of products available (58%) and concerns over their hygiene (27%) are also factors.

"Circular practices are less and less of a niche trend – demand is rising. Here at Miele, we are also taking this into account, for example with a series of pilot projects," says Rebecca Steinhage, an Executive Director at Miele, one of whose responsibilities includes sustainability.

Since July, Miele has been offering refurbished electronics as an alternative to brand-new spare parts in five European countries. In the Netherlands, Miele tests, repairs and cleans used washing machines and sells them to interested customers with the "refurbished" label. 

Circular repairs

70% of those surveyed say that it is important for them to be able to repair a domestic appliance themselves if this will enable them to save time and costs.

High availability of spare parts is vitally important for people.

With videos walking people through the repair work is the ideal choice – and this circularity exists even when it comes to repairs, with 81% of those surveyed saying they would use refurbished spare parts for repairs.

In such cases, they say that it would be important for the parts to have a long warranty period (74%) and be priced appropriately (73%).

The vacuum cleaner is the most common answer when consumers are asked which domestic appliance they would be most likely to consider purchasing if it was made primarily from recycled materials (56%).

This is followed at some distance by the washing machine (41%). All other appliances included in the survey (cookers, ovens, hobs, dishwashers, coffee machines, refrigerators, tumble dryers) poll more or less even at around 35%.

Close to 70% of those surveyed regard the circularity of domestic appliances as an essential factor for the environment and society in the future. And 60% consider this to be true for themselves personally.

Rebecca adds: "These results spur us on to resolutely pursue the strategic course we have set ourselves."

******

Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain LIVE 2024

******

Procurement Magazine is a BizClik brand.