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Home appliances-as-a-service to promote reuse, repair and extended lifecycles

Traditionally, a broken washing machine is a consumer’s expensive burden. BlueMovement introduces an alternative business model where more appliances are repaired and consumers save money.

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As part of BSH Hausgeräte – with leading home appliance brands such as Bosch, Siemens, Neff and Gaggenau – BlueMovement is a clear example of how large companies can take responsibility and move towards a circular economy with their product-as-a-service business model. The lifespan of appliances is also extended thanks to included repair services.

BSH will gradually add circular elements to their business to reduce their dependence on resources and reduce waste generation. BlueMovement helps the company to learn fast in the circular economy, while also tapping into new customer segments and ensuring new revenue streams.

Problem

In the electronics sector, broken appliances are rarely repaired or refurbished and instead end up in landfills while being replaced by new appliances. This cycle stresses scarce resources and contributes to climate change by increased production. The gradual implementation of a circular economy reduces both the need for resources as well as the waste produced, but requires companies to rethink their businesses in order to be successful in the future.

Solution

With BlueMovement, BSH goes beyond selling home appliances and instead offers them as a service. BSH delivers, installs, repairs, moves, adjusts and picks the appliances up again at the end of the contract.

After their use, appliances are repaired and reused, and working components of broken appliances are reinstalled in a new loop if the appliance itself is not reparable. BlueMovement also facilitates initiatives within BSH to redesign appliances so that they are easier to disassemble and repair.

BlueMovement adds circular elements to the linear economic model of production, use and disposal and forces competitors to do the same. For example, Bosch, which has already taken some real steps towards sustainability, is widely promoted on this platform due to their eco-efficient appliances.

BSH Hausgeräte’s initiative may further encourage customers to ask for similar services in other appliance groups and with other brands. In addition to offering affordable household appliances, BlueMovement is a good way to educate consumers on waste and induce behavioural change.

Environmental impact

Using a refurbished or repaired appliance instead of buying a new one saves resources and reduces the reliance on virgin resources. BlueMovement leases appliances with high environmental ratings, so customers reduce their energy, water and detergent consumption throughout the use of the appliance compared to traditional models.

Social impact

BlueMovement makes sustainable home appliances more affordable. In fact, they have observed that customers who used to do their laundry by hand can now afford a resource-efficient washing machine through the initiative. Repair costs are automatically included in the cost of the service, which makes it safe and accessible also for low-income groups.

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