Three years ago, German high-end home appliance manufacturer Miele began selling refurbished washing machines alongside its regular products in the Netherlands. This involves collecting returned Miele washing machines, including those with scratches or easily repairable defects, repairing them, and reselling them online.
The German company chose the Netherlands because Miele products have proven popular in the country and because consumers there are comparatively open to refurbished products. The company hopes that this project will reach new customer groups. Max Wagner, who heads Miele’s sustainability team, says sales of refurbished devices have not dwarfed his company’s sales of new models, as initially feared.
“We have been able to expand our customer base to include younger, digitally savvy groups who might otherwise have opted for a competitor for cost reasons,” Wagner told DW. He said surveys have shown that sustainability considerations such as saving resources and protecting the environment are of secondary importance to customers purchasing refurbished products.
Refurbished Circuit Board
Another Miele pilot project focuses on the refurbishing of circuit boards. When repairing their washing machine, dishwasher or coffee machine, customers can choose between having a new circuit board installed or a refurbished circuit board installed. Often, customers choose cheaper, refurbished versions when repairing older equipment.
Miele will refurbish approximately 12,000 electronic components in 2024, with a pilot project running in five European countries, including Germany. Giving customers the choice between new and refurbished components means a little more work for customer service agents, however, who bring both with them to appointments so they can make repairs on the spot as per the customer’s wishes.
Washing machines are particularly suitable for reuse because they are relatively expensive and sold in large quantities, so returns are very high. This means that spare parts are available for a longer period of time. Customers also don’t worry much about scratches, as many people keep washing machines in the basement.
Miele’s Dutch refurbished washing machine project is meant to serve as a blueprint for other appliance groups and markets. Running such a system requires national infrastructure and sufficient returns to meet demand, says Christoph Wendaker, head of Miele’s sustainability and regulatory affairs unit. After all, it is almost impossible to transport discarded washing machines across European national borders due to EU waste legislation.
This is one reason why professionally refurbished items currently have a very low market share. Nezk Jakopin of technology consultant Eddie Little estimates that such goods make up less than 5% of the total market. By comparison, a quarter of European smartphones are purchased second-hand.
Reselling large home appliances can be complicated
Smartphones do well in the second-hand market. They are small, easy to send by mail, typically replaced every two to five years, and their residual value is relatively high. Putting household appliances back into circulation is far more complicated, not only because a washing machine requires two technicians to assemble it, and a water connection to test its various functions.
“The professional refurbishing that comes with a product warranty requires its own logistics chain,” Jacopin told DW. The first difficulty is getting hold of used but useful tools. “You have to collect them directly from the customer or set up a collection point.” Premium manufacturers like Miele, which have their own distribution channels, are at an advantage here.
“Other producers need to think about how they work with retailers,” Jacopin said. This is because retailers become part of the process. “If returns become part of a cycle, new sales are generated. You can make it attractive for customers to switch to an appliance that is cheaper but a little more stylish and energy-efficient than their previous one.”
growth market
MediaMarktSaturn, Europe’s largest consumer electronics retailer, offers approximately 260 “like new” home appliances such as extractor hoods, mini fridges and hobs. This is alongside its range of thousands of second-hand smartphones and laptops.
The Thermomix, a versatile kitchen appliance made by Germany’s Vorwerk, is one of the most sought-after pre-owned products. Even items that are several years old are still priced in the triple digits on second-hand platforms such as refurbished.de, aktuell.store, and backmarket.de. This is due to the durability and good reputation of these products as well as the availability of spare parts, which is not unlike Miele washing machines. Yet these compact Thermomix devices are far easier to send my mail than the larger washer.
There are companies that now specialize in refurbishing old equipment. These include I-Project, the company behind Renew.store, which buys, tests, cleans and resells Vorwerk kitchen products. The process is similar to selling an old smartphone. Customers visit a website, select their model, assess the condition of their device, and receive an initial non-binding offer. After inspecting the device, the company either confirms or changes the offered price and a deal can be made.
While consumers who want new products without any old wear and tear are still the majority, the refurbished segment is growing, Jacopin said.
This article was translated from German