Electrolux is kicking off trials of new hardware-as-a-service business models, enabling consumers to subscribe to, rather than purchase, its products for use to find new innovative and sustainable solutions for ever-changing consumer needs in a connected environment.
"With the Internet of Things especially, combined with subscription and circular economy macro trends, the market is evolving and we see early signs that services based on these trends make sense for the consumer also in hardware electronics and appliances, ” said Daniel Wentz, Electrolux VP Software Product. “It’s important to understand the dynamic of such new models, and we look forward to learning more about the opportunities this could bring the consumer, our business and sustainably focus alike.”
The new business models are currently being tested in Sweden and China.
In Sweden, the award-winning Pure i9 robotic vacuum is being offered on a trial subscription pay-per-use basis from only 1 SEK per m² cleaned (minimum of 79SEK/month), with all service and maintenance included in the fee. The product is connected, meaning users can control the product via an app and schedule cleaning when they are away from home as well as monitor the number of m2 cleaned each month.
Crucially, if a consumer returns the product to Electrolux and chooses to end the subscription, it is refurbished and made available for the next customer – ensuring each unit is used to its fullest extent, contributing to a circular economy during the product’s lifetime.
Meanwhile in China, where it’s customary for people to take care of their elderly parents who often live far away, Electrolux is launching hardware-as-a-service start-up Love+ this summer. With the Love+ model, products are ordered and paid for on a monthly subscription basis and sent directly to the parent’s house, with the family handling the fees. Once delivered, family can help wirelessly take care of certain chores via a Love+ app. Both the Pure i9 robotic vacuum and the new Pure A9 air purifier are leasable via Love+, with more products becoming available in the near future.
Electrolux has also just announced its investment in Mila, (mymila.co a US/Chinese start-up that offers connected air purifiers via a subscription-based model direct to consumers.