The vast majority of consumers are aware of the financial benefits of circular practices – particularly repair and second-hand shopping – finds a new report from Klarna, the AI-powered payments network and shopping assistant. Drawing on insights from a survey of over 3,000 consumers across the UK, USA and Germany, along with interviews with sustainability experts from The Wardrobe Diary Project, Save Your Wardrobe and Refurbed, Klarna’s 2024 Circularity Insights Report sheds light on new and emerging consumer trends related to circular practices within the fashion and electronic sectors, while also offering actionable strategies for brands to harness the full potential of circularity.
Consumers are increasingly aware of the financial and environmental benefits of circular practices like repair and second-hand shopping, particularly the younger generations. However, the report finds that a notable gap between attitudes and actual behavior persists, with barriers like cost, feasibility, and convenience hindering widespread adoption of these practices.
“Klarna’s 2024 Circularity Insights Report highlights consumers’ increasing awareness of the economic benefits of more sustainable, circular practices, like repairing items or second-hand shopping,” said Alexandra Colac, Sustainability Lead, Klarna. “It also sheds light on challenges in turning this awareness into action. Our research is geared towards bridging this gap, offering businesses, including our 500,000+ retail partners globally, deeper insights to help them actively engage with and apply the principles of the circular economy in their practices.”
KEY REPORT FINDINGS INCLUDE:
High awareness of circularity’s financial benefits: 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.
Out with the new, in with the old – consumers prioritize eco-friendly choices: 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.
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