Miele: Changing Attitudes can Benefit Circular Practices
Consumers are starting to change their minds about refurbished and circular products, according to a survey by Miele.
This shift in attitude presents significant opportunities for procurement teams to adopt more sustainable practices and align with evolving consumer preferences.
Rebecca Steinhage, Executive Director for Sustainability at Miele, says: "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."
About Miele
Miele is a German manufacturer of domestic appliances and commercial equipment.
Founded in 1899, it remains family owned and run to this day.
In 2022 the company had revenue of €5.4bn (US$5.9bn) and more than 23,000 employees.
Miele’s first product in 1899 was a cream separator, and the company now produces appliances ranging from vacuum cleaners to ovens.
How consumers feel about circular products
Miele’s survey reveals a growing acceptance of circular practices among consumers.
The study, which polled 1,000 men and women in Germany, found that 21% of respondents were already familiar with the concept of circularity.
More than a third of those surveyed correctly associated circularity with recycling (42%) or circular economy (41%).
This understanding is reflected in consumer trust, with over three-quarters of those surveyed expressing confidence in the durability of appliances containing recycled materials (73%) or refurbished components (65%).
The primary motivators for adopting circular practices were reducing waste and conserving resources, with an impressive 89% of respondents citing each as important factors.
This strong alignment between consumer values and sustainable practices suggests a fertile ground for circular procurement initiatives.
Consumers’ concerns about circularity
Despite the growing acceptance, some concerns remain among consumers.
Nearly two-thirds of respondents expressed worries about potential quality defects (62%) in refurbished or recycled products.
Additionally, 58% cited limited product availability as a barrier to adoption, while hygiene concerns were mentioned by 27% of those surveyed.
To address these issues and capitalise on the growing interest in circular products, Miele has launched several initiatives across European countries.
Since July, the company has been offering refurbished electronics as an alternative to brand-new spare parts in five countries.
This approach not only extends the life of existing components but also provides consumers with more affordable options for maintaining their appliances.
In the Netherlands, Miele has taken circular procurement a step further.
The company now tests, repairs, and cleans used washing machines before selling them as "refurbished" products.
This initiative not only reduces waste but also offers consumers a more sustainable and cost-effective alternative to purchasing new appliances.
Empowering consumers through repairs
The survey also revealed a strong interest in self-repairs among consumers, with 70% of respondents expressing a desire to fix appliances themselves to save time and money.
This trend aligns well with circular procurement principles, as it extends the lifespan of products and reduces the need for new purchases.
High availability of spare parts was deemed crucial by survey participants, highlighting the importance of maintaining a robust supply chain for replacement components.
Notably, 81% of those surveyed said they would be willing to use refurbished spare parts for repairs.
When considering refurbished parts, consumers prioritise long warranty periods (74%) and appropriate pricing (73%).
This suggests that procurement teams should focus on sourcing high-quality refurbished components that offer reliable performance and value for money.
Video tutorials for repair work were also highly valued by respondents, indicating an opportunity for companies to provide educational resources that support the circular economy.
By empowering consumers with the knowledge and tools to repair their own appliances, businesses can foster brand loyalty while promoting sustainable practices.
The future of circularity for Miele
The survey revealed varying levels of consumer interest in different types of circular appliances.
Vacuum cleaners emerged as the appliance most likely to be purchased if made primarily from recycled materials, with 56% of respondents expressing interest.
Washing machines followed at 41%, while other appliances, including cookers, ovens, hobs, dishwashers, coffee machines, refrigerators, and tumble dryers, all polled at around 35%.
These findings suggest that teams should prioritise circular initiatives for vacuum cleaners and washing machines, as they are likely to see the highest consumer acceptance.
However, the relatively even interest across other appliance categories indicates potential for growth in all areas of circular procurement.
Nearly 70% of respondents view the circularity of domestic appliances as essential for the environment and society in the future, with 60% considering it personally important.
This strong alignment between personal values and societal benefits underscores the potential for circular procurement to drive both business success and positive environmental impact.
Rebecca says: "These results spur us on to resolutely pursue the strategic course we have set ourselves."
As consumer attitudes continue to evolve, appliance companies like Miele have a unique opportunity to embrace circular principles and drive industry-wide change.
By selecting suppliers who prioritise longevity and recycled materials in their products, procurement professionals can meet growing consumer demand while contributing to a more sustainable future.
The shift towards circular appliances not only benefits the environment but also offers potential cost savings and improved brand perception, making it a win-win strategy for businesses and consumers alike.
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