Industria
Majority of consumers see circularity as a money saver, says new report from Klarna
The vast majority of consumers are aware of the financial benefits of circular practices, with repair and second-hand shopping seen as prime money-savers. Notably, 69% of consumers have or anticipate potential savings from second-hand fashion, repairs, and rentals, with 66% noting similar benefits in second-hand electronics shopping. This awareness is more pronounced among those under 35 than it is among older generations.
: Over half (54%) of consumers across all demographics express indifference towards owning the latest gadgets, and 42% show decreased interest in new product releases compared to last year. Meanwhile, more than a third (36%) of global consumers are more concerned about their ecological footprint than they were a year ago.
70% of consumers purchased only new clothes in the past year – a trend that is even more pronounced in other categories: 82% for phones and laptops/tablets, 84% for shoes and accessories, and 87% for entertainment electronics. However, younger consumers, particularly Gen Z, show a promising trend as they are three times more likely to opt for second-hand electronics than those over 55, indicating a shift towards more sustainable consumer habits and a potential market expansion in second-hand goods.
While nearly half (45%) of consumers believe repaired electronic devices are as good as new, there's a notable behavior gap: the majority of consumers chose not to repair their entertainment electronics (85%) and mobile phones (71%) the last time they broke. Similar trends are observed within the fashion category, with 77% avoiding clothing repairs. This disconnect presents a substantial opportunity for brands and businesses to encourage and facilitate repair options, potentially shifting consumer behavior towards more sustainable practices.
The main hurdles in adopting circular practices differ across sectors. In electronics, cost (57%) and feasibility (33%) are the top barriers to repair reported among consumers – often, software incompatibility and built-in expiration dates make it difficult for consumers to extend the lifespan of their electronics devices. In fashion, feasibility (31%), convenience (30%), and utility (27%) prevail. Depreciation also hinders second-hand shopping, with 21% of consumers citing low clothing resale value, and 27% for electronics, as deterrents to reselling.
"What our research shows is that there's an educational opportunity for brands to remind consumers of the true and long-term value of products. Brands can also boost consumer involvement in the circular economy by emphasizing the financial, convenience, and style benefits of secondhand shopping, rentals, and repairs. This strategy not only extends product life but also merges environmental and financial perks, making circularity more appealing to consumers,"
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To learn more about Klarna's sustainability initiatives, visit https://www.klarna.com/international/sustainability/.
Quantitative research was conducted in partnership with Opinium between 27th September and 3rd October 2023 with 3.000 representative adults (16 years or older) in the UK, USA and Germany (1.000 participants per market). Qualitative research was conducted through expert interviews with Olof Hoverfält (The Wardrobe Diary Project), Hasna Kourda (Save Your Wardrobe) and Peter Windischhofer (Refurbed).
Adaline Colton
Press@klarna.com
+1 (614) 429-9125
Since 2005 Klarna has been on a mission to accelerate commerce with consumer needs at the heart of it. With over 150 million global active users and 2 million transactions per day, Klarna's fair, sustainable and AI-powered payment and shopping solutions are revolutionizing the way people shop and pay online and in-store, empowering consumers to shop smarter with greater confidence and convenience. More than 500,000 global retailers integrate Klarna's innovative technology and marketing solutions to drive growth and loyalty, including H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb. The company became the first fintech to join The Climate Pledge and Race to Zero campaign, and makes annual financial contributions to high-impact climate projects, including carbon removal, reforestation and forest protection, and emission reduction projects. For more information, visit Klarna.com.
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