I MARKET TRENDS I Gfu
I MARKET TRENDS I Gfu Insights & Trends comes full circle From refurbishing to a repair bonus: how to achieve a circular economy in 2023 Sustainability is a core theme at IFA this year, and the opening presentation at the IFA Innovations Media Briefing (IMB) 2023 saw gfu Consumer & Home Electronics GmbH give a platform to a diverse set of speakers offering different perspectives on the circular economy. First to take the stage was Dr Monika Griefahn, Founder and CEO of Institut Medien, Umwelt, Kulture (IMUK), one of the cofounders of Greenpeace in Germany and former German environment minister. Dr Griefahn explained her vision of a “cradle to cradle” approach to the circular economy. "Rethink, reinvent, redesign," was one standout line from the presentation, with the often-used “reduce, reuse, recycle” seen as not accurate enough when describing the prevalent issues of today. The speaker called to reduce the use and negative impact of raw materials, and used the cradle to cradle way of thinking to explain that consumer products must be manufactured with "biological nutrients", while service products should feature "technical nutrients". “We need effectiveness instead of efficiency,” said Dr Griefahn, restating her wish to build “future Silicon Valleys of the circular economy.'” Next to speak was Claudia Kreft, from the Consumer Centre of Thuringia, who highlighted the “repair bonus” initiative that has been implemented in the German state since 2021. Ms. Kreft pointed to a report which showed that approximately 74% of consumers see price as a put-off when it comes to getting an electrical appliance repaired. As a way to navigate this issue, the German state of Thuringia has been subsidising repairs 16 IFA INTERNATIONAL • FRIDAY 25 TH AUGUST 2023 www.ifa-berlin.com/content-hub
I MARKET TRENDS I © Sascha Gloede INTERNATIONAL CONSUMERS ON CIRCULARITY Speakers on stage at the gfu Insights & Trends 2023 Dr Sara Warneke, Managing Director of gfu Consumer and Home Electronics GmbH and Dr Martin Schulte, Global Sector Leader Consumer Durables at Oliver Wyman, opened IMB 2023 by showcasing the findings of an international consumer study on circularity in consumer and home electronics. The European consumer survey was conducted by the strategy consulting firm Oliver Wyman in cooperation with gfu, with a range of interesting findings that outline the state of the circular economy in the current climate. Dr Monika Griefahn Founder and CEO of Institut Medien, Umwelt, Kulture (IMUK), one of the cofounders of Greenpeace in Germany and former German environment minister to electrical appliances and consumer electronics, as well as smartphones, at 50% of the cost. The budget granted to the state of Thuringia in 2021 was €500,000, rising to €875,000 in 2022, inspiring continued repairs and extended shelf-life for appliances. THERE IS A REFURBISHED ZEITGEIST THAT IS NOT GOING TO GO AWAY Steffen Vangerow, Managing Director of Vangerow GmbH and Member of the board Runder Tisch Reparatur, echoed a similar sentiment. Mr. Vangerow explained that he had become passionate about repairing from a young age, and even attended IFA as a child to draw inspiration. Speaking at IMB, Mr. Vangerow identified industrial, political, and social obstacles to his company and other local repair shops. He stated that manufacturers have a responsibility to be more transparent with component documentation, and that misleading eco-labels are one issue that politicians could help address. Mr. Vangerow also identified price as an obstacle to consumers repairing their appliances. He cited a product listing that was apparently €170 to repair and around €240 to purchase new, with the gap being too small to encourage consumers to repair their devices instead of purchasing a new model. Next to take the stage was Viola Linke, Head of Global Communication and Brand Management at Liebherr Hausgeräte GmbH. Ms. Linke unveiled her company’s efforts of going circular, namely via patented BluRox technology. This technology replaces the conventional polyurethane foam that is usually found in refrigerators and freezers, using a vacuum instead for cold insulation. A lava rock called perlite is finely ground and used to stabilise the component. “We strive to be the leader in sustainable refrigeration and freezing technology,” Ms. Linke proclaimed. “With solutions that save energy and reduce the use of precious resources along the entire lifecycle.” Following Ms. Linke was Dr Tim Seewöster, Chief Marketing Officer at asgoodasnew, a German company specialising in e-commerce repair. Mr. Seewöster’s speciality is the so-called “refurbishing boom,” with the refurbishing segment apparently growing at a faster rate than the general e-commerce market. "There is a refurbished zeitgeist that is not going to go away," Mr. Seewöster affirmed during his presentation One takeaway was that younger (18-34) and older (55+) respondents had shared notions about sustainability, but with slightly different interpretations. For example, 53% of respondents over the age of 55 said they would rather repair old products than buy new ones. Despite only 37% of those aged 18 to 34 agreeing with this, the age segment was the most willing to buy refurbished products, and to share and rent products when needed instead of buying them. A less optimistic finding from the report was that there is apparently not enough education regarding disposal options for end-of-life devices. Around one third of consumer electronics appliances, such as washing machines, are not recycled or reused in Germany. Instead, these appliances are left “dormant” in households. Furthermore, it was revealed that up to 43% of smartphones reportedly do not re-enter the “recycling loop.” 82% of German respondents identified the municipal waste pick-up as the leading option for recycling e-waste, while France was the nation that selected “free returns to the supermarket” the most (37%). The United Kingdom selected “sending back to online shops” more than Germany and France, with 27% picking this option Dr Sara Warneke, Managing Director of gfu Consumer and Home Electronics GmbH Dr Martin Schulte, Global Sector Leader Consumer Durables at Oliver Wyman © Sascha Gloede IFA INTERNATIONAL • FRIDAY 25 TH AUGUST 2023 17
