Essential reading for retailers and suppliers in the home improvement market

Research highlights consumer interest in retailer return schemes

Published: 18 July 2017 - Sue Deane

New research from WRAP reveals that £1.5-£3 billion worth of electrical products are returned in the UK each year.  Sales of electrical products are expected to increase by 19% up to 2020 with UK households already purchasing four products for every three that are discarded.

WRAP looked at consumer attitudes to the way people buy, consume and discard their electrical products as part of its report: Switched on to Value: Powering Business Change, published today.  It highlights consumer behaviour as a major determinant in the lifecycle impacts of electrical and electronic products and the key findings show that half of consumers are willing to buy used products from a reputable retailer; addressing concerns over personal data could encourage more consumers who currently hoard electrical items to dispose of them; while 83% of households are interested in retailer take-back schemes 

WRAP's consumer research confirms that 57% of households say that they return products due to fault, with a further 39% returning them because they don’t meet expectations. However, research with retailers indicates much lower product fault rates and it is estimated that electrical products worth in total £½-£1 billion are returned each year with no fault found. 

WRAP is leading an initiative to reduce product damage and returns. Through its collaborative work streams the organisation aims to reduce the cost of refurbishing and re-selling returned products through circular business models and online outlet channels. 

Technological evolution of products including SMART devices and a trend in upgrades by replacement, combined with annual upgrade schedules is driving this increase in consumption, says WRAP.

Alongside this increased consumption its research found that there is desire for quality used products with 50% of customers saying they would be willing to purchase such items.

With increased amounts of 12-18 month old products side lined for the latest upgraded models, the report says retailers and brands can capitalise creating a market for second and third users, continuing to make money from their products after its first use.  

WRAP predicts that over 80 million ‘SMART’ devices containing customer personal information will arise in the waste stream in 2020 while its research suggests that two thirds of customers are concerned about personal data on the devices they have used. Over half of these would be discouraged from disposing of these items.

“This is where brands with their influence on product design and retailers with their customer facing position are uniquely placed to lead on the issue of data eradication and data security, adding real value to their offering to customers. If brands and retailers can present a solution to the challenges consumers face around data security and eradication it will help them build trust and increase brand loyalty among their customers.“

WRAP is encouraging organisations to sign up to its voluntary agreement esap 2025 which “delivers benefits to business and the environment by improving durability, minimising returns, increasing re-use and recycling, resource efficient business models and supply chain resilience.

“Through esap 2025 WRAP partners with leading retailers, brands, re-use and recycling organisations, charities and NGOs, enabling collaboration around common challenges at scale, to deliver commercial and economic benefits.”

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