The encyclopedia · Product & Design · Strategic decision · 2023–2024
Philips sold only refurbished returns for the holidays and called it premium
Philips turned returned products into a 'Better than New' gift line, selling 52,000 refurbished units and avoiding 185 tonnes of e-waste.
Philips
the move
After Christmas, more than 10 million returned gifts end up in landfill, because producing something new is cheaper than rechecking, repacking and reshipping the old.
Philips flipped the model. For its holiday season, it sold only refurbished and returned products, repositioned as a premium line rather than a markdown.
Each item was cleaned, inspected and repaired by a team of experts, then shipped with the same 2-year warranty as a brand-new product, so the 'second life' came with full trust.
The creative work with LePub framed the refurbished product as aspirational, with an AR installation that made the waste problem visible in real time.
why it works
- The 2-year warranty removed the risk that made refurbished feel cheap.
- Repositioning as a premium edition changed the framing from discount to upgrade.
- Selling refurbished only removed the easy path to landfill and forced a better outcome.
- AR made the environmental cost concrete enough for shoppers to act on it.
what transfers
Perception makes refurbished goods cheap. Dress a return as an upgraded edition with a full warranty and it stops being a discount — the waste becomes the growth line.
what came after
The campaign became the fastest product promotion in Philips history, with 52,000 refurbished items sold out, roughly 185 tonnes of e-waste prevented and an estimated 277 tonnes of CO2 avoided. It won the Cannes Lions Grand Prix for Creative Business Transformation, and Philips folded the approach into its normal go-to-market rather than treating it as a holiday stunt.
references
- Philips takes home Cannes Lions Creative Business Transformation Grand Prix for Better than New campaign
- Philips — Refurb: Better Than New (London International Awards entry)
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