- 32% of adults in the UK say they are open to participating in
Recommerce more frequently if they are able to make or save money
from their actions, compared to just a quarter of those across
Europe.1
- 40% of adults identified reducing waste, packaging or plastic
as the main reason for taking part in the Recommercial
economy.2
- Nearly a quarter of small businesses (23%) in the UK already
provide Resale options.3
- Visa has launched a digital Recommerce space to help
individuals and small businesses explore and learn more about
Recommerce activities to enable more sustainable behaviours.
- This builds on the Strategic Partnership between Visa and the
Ellen MacArthur Foundation, investigating how global payments
infrastructure will evolve to support new circular economy
systems.
LONDON, Dec. 8, 2022
/PRNewswire/ -- New UK and Europe-wide research conducted for Visa
reveals that the cost-of-living crisis and impacts of climate
change are causing people in the UK to rethink their current
purchasing habits and look for more sustainable ways to buy and
sell products and services.4
Opinium research conducted for Visa found that 90% of
individuals surveyed across the UK have already participated in at
least one Recommerce activity: a more regenerative way to buy,
reuse and share goods and services. However, there is a lack of
understanding amongst consumers that many of their behaviours are
already working towards a more sustainable future and by adopting
these behaviours more often will accelerate changes in this
area.
The 6 Rs
Recommerce behaviours which include Resale, Refill, Repair,
Rental and Return and Redistribute - defined as sharing, exchanging
or selling at lower prices things that one no longer needs or
has too much of - are referred to by Visa as the six Rs. Out of the six
Rs, Resale is the most well-known and understood of
all the behaviours with over 47% of consumers reselling goods at
least twice a year. Over one in five (23%) of small businesses in
the UK already provide Resale options with 37% planning to do so in
the future. Over a quarter (29%) of consumers are motivated to pay
for items to be repaired, refurbished or adapted as it will save
them money in the long term. Consumers are the most motivated to
engage in Repair to extend the life of high-quality
products. Refill is used by consumers to cut back on waste,
with 20% of those who participate doing so as it fits with their
values. Return includes taking or accepting products back at
the end of their life cycle, and alongside resale, is one of the
most likely activities to be provided by UK
businesses.5
Consumer Motivations – The rise of the 'Environmental
Entrepreneur'
The latest study from Visa and Opinium shows that recognising
the financial opportunities for the business savvy and
understanding the potential for cost savings are key to encouraging
Recommerce. 32% of adults surveyed said that they would take part
in Recommerce activities more frequently if they could find a way
to make money from their actions, such as setting up an app to sell
used clothing or furniture or receiving cash incentives to
redistribute surplus food. Indeed, already over half (53%) of UK
adults who participated in Recommerce say they have already saved
money through it.
Environmental benefits are also a key driver for consumers. Visa
has found that over four in five of adults in the UK have actively
taken part in environmentally friendly activities over the past
three months, with the vast majority (90%) stating that they felt
that using less packaging has an impact on the environment and
society. As 40% identified reducing waste, packaging or plastic as
the main reason for taking part in the Recommercial economy, it is
clear that the combination of environmental concerns, and costs are
driving Recommerce uptake.
Working Together
As a global payments network, Visa intends to make it easier,
more rewarding, and more accessible for people and businesses to
consider Recommerce in their daily choices. Working with Strategic
Partners such as the Ellen MacArthur Foundation, an international
charity that develops a promotes the circular economy — which
is designed to eliminate waste and pollution, circulate products
and materials, and regenerate nature — Visa is striving to help
accelerate the transition towards a more regenerative circular
economy.
Visa has created a new digital Recommerce space to help
individuals and businesses learn more, with educational resources
on how to adopt the six R's of Recommerce: Resale, Repair, Rental,
Refill, Return and Redistribution. As a next step, Visa is set to
develop a behavioural insights lab. Through experimentation and
working with clients and partners to uncover findings, the lab aims
to uncover actionable ways to implement real-world solutions and
empower individuals to adopt more sustainable behaviours in their
everyday life. "The new Behavioural Insights Lab will conduct
experiments to further this ambition, with the Ellen MacArthur
Foundation ensuring its Circular Design Principles are incorporated
and that pre-competitive opportunities may be advanced through its
network," says Joe Murphy, Executive
Lead, Network, at the Ellen MacArthur Foundation.
Mandy Lamb, Managing Director,
UK&I, Visa
"It's inspiring to see that UK consumers are leading the way in
taking up Recommerce behaviours, and their appetite to learn more
about sustainable spending. The shift from a linear to a
regenerative economy requires big societal change, but by setting
expectations high and rethinking our habits with the help of
education, we can all achieve this shift to a more sustainable
future. Through Visa's Recommerce behavioural insights lab, we are
excited to work with partners to uncover real-world solutions that
will empower individuals to make the circular economy a bigger part
of everyday life."
Opportunities for small businesses – Recommerce proven to
boost business
As consumer preferences change, so to do the opportunities for
businesses. By 2030, it is estimated that the transition to a
circular economy in the UK will be a £82 billion economic
opportunity6, with the data indicating this is already
being felt by businesses.7 UK small businesses
report that offering Recommerce has correlated to business growth,
reporting their revenue has grown on average 17% in the last 2
years, with cost savings around 12%. Most consumers (55%) indicated
that they were more likely to buy products or services from
businesses that help them to participate in Recommerce activities,
shooting up to 63% among 18-34year olds. This is being noticed by
businesses, as 37% have said customer demand was the main
motivation behind offering a Recommerce model.
However, while the future of sustainable business practices is
promising, participating in the Recommercial economy is not yet
commonplace. 38% of adults that stated that will do so once
activities become easier and more convenient to use, and over half
of those who have taken part (51%) said their motivation was around
reducing clutter over more sustainability focused priorities.
For more information about Visa's Recommerce initiative and to
join Visa to shape and accelerate the transition to a more circular
economy, please visit: https://www.visa.co.uk/recommerce.html
NOTES TO EDITORS
About the research
Research commissioned by Visa and conducted by Opinium with
8,000 European consumers and 2,000 European SMB decision makers,
between 19th October 2022 and
25th October 2022. The data was
collected using an online survey in the UK, France, Germany and Poland.
Visa commissioned GlobeScan, an independent insights and
strategy consultancy to conduct an online survey to understand
current SMB and consumer behaviours as well as future appetite for
Recommerce. The study surveyed 7,000 consumers and 1,750 micro,
small and medium-sized businesses (SMBs), using established online
research panels across 7 countries: France, Germany, Greece, Italy, Poland, Sweden, UK. The consumer sample is nationally
representative of n=1,000 adults aged 18+ per country, with quotas
set by age, region, gender, and education. SMBs were defined as:
businesses with less than 250 employees, and a turnover of less
than €50 million in the last financial year, further divided under
micro (>10 employees), small (10-49 employees) and medium
(50-249 employees) businesses.
*"Case studies, comparisons, statistics, research and
recommendations are provided "AS IS" and intended for informational
purposes only and should not be relied upon for operational,
marketing, legal, technical, tax, financial or other advice. Visa
Inc. neither makes any warranty or representation as to the
completeness or accuracy of the information within this document,
nor assumes any liability or responsibility that may result from
reliance on such information. The Information contained herein is
not intended as investment or legal advice, and readers are
encouraged to seek the advice of a competent professional where
such advice is required."
**"This presentation contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 that relate to, among other things, [our future operations,
prospects, developments, strategies, business growth and financial
outlook]. Forward-looking statements generally are identified by
words such as "believes," "estimates," "expects," "intends," "may,"
"projects," "could," "should," "will," "continue" and other similar
expressions. All statements other than statements of historical
fact could be forward-looking statements, which speak only as of
the date they are made, are not guarantees of future performance
and are subject to certain risks, uncertainties and other factors,
many of which are beyond our control and are difficult to predict.
We describe risks and uncertainties that could cause actual results
to differ materially from those expressed in, or implied by, any of
these forward-looking statements in our filings with the SEC.
About Visa
Visa Inc. (NYSE: V) is a world leader in digital payments,
facilitating transactions between consumers, merchants, financial
institutions and government entities across more than 200 countries
and territories. Our mission is to connect the world through the
most innovative, convenient, reliable and secure payments network,
enabling individuals, businesses and economies to thrive. We
believe that economies that include everyone everywhere, uplift
everyone everywhere and see access as foundational to the future of
money movement. Learn more at Visa.co.uk.
1 Opinium research, October
2022
2 Opinium research, October
2022
3 GlobeScan research, June
2022
4 Opinium research, October
2022
5 GlobeScan research, June
2022
6 Delivering climate ambition through a more circular
economy, 2021
7 The Circularity Gap Report, Circle Economy,
2021
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