Instead of buying new technology, we’re seeing that the device as a service model, or DaaS, is quickly gaining traction. More and more, consumers and businesses are waking up to the realization that ownership is not necessary.
Factors contributing to this include growing environmental awareness, impacted supply chains, and improved perceptions of pre-owned goods.
Renting or leasing goods still provides access to the product you want, but it comes with a more sustainable end of use process.
Through the reverse logistics and repair work that Ingram Micro Lifecycle has carried out over the last 17 years, extending the lifecycle of devices, we know that technology needs ongoing in-life support and servicing. This could be for either business users or consumers.
In this piece, we consider the findings of research studies to analyze the shift away from owning technology to renting it.
The argument for consumer leasing
According to research conducted by Barclaycard, there are four changes in market trends that have an impact on how consumers buy and what they buy. On the retailers’ side, it’s affected how they sell and what they sell.
- A ‘recommerce economy’ is growing, promoting recycling, renting, reusing, and reselling. Seven out of 10 businesses now offer these more sustainable shopping options.
What’s recommerce? This is the process of selling previously owned products. They could be in new condition or used, but they’ll be repaired and repackaged ahead of resale. - 30% of retailers believe that recommerce growth is caused by increasing environmental awareness and the cost-of-living crisis.
- Product rental models are on the rise, with two out of five retailers already offering this, and a quarter have begun the process of introducing one.
- Over 50% of retailers are experiencing a drop in their returns rate. This leads them to believe that consumers are being more mindful when shopping.
Let’s look specifically at the technology market. The same research piece shows that 17% of the items available to rent from retailers are electronic goods.
The great change is the increase in pre-loved products which are becoming available to buy. Electronic goods represent 20% of this total.
Other product types include jewelry, designer clothing and handbags, furniture, tools, etc. This clearly indicates how important the focus on a circular economy is becoming.
The research also cites that as shoppers look to rent items that they would have in the past purchased new, retailers are responding at pace. 90% of retailers that have introduced a rental model in the last year have benefited from an increase in revenue. The majority (89%) have also seen their rental customer base grow, at an average increase of 31%.
It’s hard to turn your head when leasing companies like Grover offer tech for 45% cheaper than the RRP per month. The range of what is available is also extensive. The wide choice covers TVs, wearables, gaming products, e-scooters, mobile phones, tablets, laptops… the list goes on!
Leasing a laptop for £16.99 a month or a tablet for £9.99 a month sounds very reasonable and, when all things are considered, the offers on the table by companies such as affordable mobiles will grab a consumer’s attention.
Why leasing is attractive for enterprises
Businesses’ technology infrastructures are also very costly elements that need close attention and control.
Vivio, a business-focused leasing company, states that a good reason for businesses to lease will “enable any business to acquire the right devices for their team without having to worry about the expense – while also enjoying tax relief and fixed monthly payments.”
Looking at mobile phone leasing for your enterprise employees could mean you can separate the costs of your airtime and the hardware, enabling far more control over expenditure.
Leasetelecom offers up to 25% off the latest models with residual value pricing.
Kickstart your leasing program
The shift in the market and the wide range of new options for customers and businesses mean an exciting time for the technology industry.
Combining more affordable technology with the potential for lifecycle extension at the end of the lease creates a more sustainable option. This makes the leasing route very appealing.
Ingram Micro Lifecycle can support these models in two ways through our extensive experience in offering technology device solutions.
We provide in-life device support via our Device as a Service (DaaS) solution. Our OEM (Original Equipment Manufacturer) accreditations enable access to their genuine parts, which we use in approved repair processes. Where devices can’t be repaired, we’re able to source replacement devices.
With over 17 years of experience in this field, our processes are refined and rapid, ensuring high customer satisfaction.
At the end of the lease, we work to extend the lifecycle of electronics through cosmetic uplift, rekitting, and recommerce, aiming to get devices with a second or even third user. This greatly adds to our customers achieving a more sustainable operation.
Get in touch with our team to discuss your leasing program today.
Related Reading
Have a question or ready to start
your lifecycle journey?
Reach out to us here.
