Toshiba Home Appliances - Pay Per Use
Details of Product Service: The only details found on
this product service, are those on the link at the bottom of the page. There
is no mention of it in the Toshiba annual report under Home Appliances. The
product service system looks interesting as it has a rental package for a
group of home appliances, but the lack of data makes it difficult to analyse
the financial, social and environmental impacts.
- Toshiba Techno Network Co., offers 'home appliance rental packages' to those
who live alone, such as students and workers away from home.
- The package is four appliances: a 4.2 kg automatic washing machine, a 120-liter
two-door fridge-freezer, a 15-inch flat television, and a cooking oven-range.
- The monthly rental fee of the whole package for a three-year contract is
3,800 yen (about U.S.$31). Users have a choice of a two, three, or four-year
- Toshiba covers within the rental any repairs, delivery, installation and
- Toshiba pays the recycling fees at end-of-life. These fees result from legislation
called the Home Appliances Recycling Law (HARL). This requires manufacturers
to take back for recycling TVs, Refrigerators, Air-Conditioners, and Washing
Machines. The recycling fees are normally paid for by user (see 'Japan' in
the seeba technical directory at www.cfsd.org.co.uk )
Stakeholders and Relationships: No details are given
on other stakeholders, but it is likely that the following does exist
The user only pays $1120 dollars for the 4 appliances over
a 3 year contract. Although prices of electrical goods are lower in Japan,
this is still pretty cheap for what is offered, and the limited market it
Environmental: Since no indication is given on what happens
to the appliances after a contract is completed it is difficult to tell whether
this product service is good or bad environmentally. The contract of 2 to
4 years is considerably less than the average life of such appliances in Europe.
Even in Japan the life span is still higher than 2-4 years for those type
of products. If those products are updated/reworked and reused for rental
there could be large environmental benefits. However if they are disposed
of, then the shorter life cycle is likely to be detrimental environmentally.
Other influences are:
Very much aimed at a niche market.
Consumers usually not only purchase appliances because they
like their own, but on features and style of the appliance. Having a package
of appliances reduces that freedom and likely to further restrict the market.