Insights

        In order to effectively reduce the resource waste and environmental pollution caused by discarded electronic products, the proposed right-to-repair legislation currently targets 52.7% of white goods, 14.6% of consumer electronics and screens, and 14.1% of information and communication equipment, detailed list as shown in Table 1. The proposal's impact mainly revolves around the producer of regulated products, as well as stakeholders such as manufacturers, importers, dealers, independent repairers, and companies and related transaction management platforms involved in refurbishing and recycling.

Table 1: Impact of advanced maintenance technology on enterprises [2]

        The impact on producers in the product warranty period should not be significant, as they still need to provide repair or replacement services as per contract, with repair taking top priority. However, managing products outside of the warranty period requires an understanding of the extension of obligations under this proposal, including the provision of repair services and skills, corresponding control of repair costs and spare parts, which producers will face to varying degrees. As demand for repair services increases, the repair/refurbishment industry will be significantly affected. Increasing repair can help improve competitiveness and effectively improve product design and reliability by leveraging user experience. Increased repair activities can also benefit various repair service providers, including independent repairers and small and medium-sized enterprises, as well as producers and traders providing spare parts and repair services.

Figure 3: Multi-dimensional considerations for EU repair [8]

        Whether consumers take repair action is a multi-dimensional consideration, with obstacles, levels, operations, and incentives all significantly affecting whether the right to repair can truly implement a circular economy. As shown in Figure 3, the new proposal aims to enhance repair incentives and effectively reduce obstacles in terms of technology, costs, operational convenience, and insufficient spare parts management. From the perspective of producers, the main impact analysis is on how to build a circular economic system in response to the new proposal, with an expected increase in repair demand and a relative reduction in product sales. According to an analysis of repair costs in the Warranty Week report, corporate revenue will shift from sales to service by about 1.5%, but the benefits obtained will be user stickiness and opportunities for repeat sales, with the durability and quality of products gaining greater trust. Refurbishing services can also extend the customer base and market, making corporate sales more visible. To achieve this goal, the corresponding service organization and management will face considerable challenges, including:

Extending and sharing repair skills

Control of spare parts inventory

Linking after-sales service and repeat sales

Consolidating after-sales management data analysis

        Whether it is the EU's construction of an ecological design framework for sustainable products or proposals to encourage consumers to undergo green transformation, both are driving the entire market to enhance repair incentives, maximize the value of product use, and avoid premature scrapping of products. The ecological design parameters of products no longer only emphasize the use of recycled materials, but also include durability and reliability of the product itself and its components, ease of repair exercise of the right to repair, compatibility, and spare parts preparation, as well as convenience of software updates, reuse, remanufacture, and refurbishment. For enterprises, all of these indicators are prepared to establish a circular supply chain, as shown in Figure 4.

Figure 4: Circular supply chain system [8]

>           Establishing a circular supply chain

>           Cooperation in resale platforms

>           Establishment of after-sales full-process management system

>           Strengthening failure data analysis and feedback mechanisms

        In the process of establishing a circular supply chain, particularly in repair systems, the connections can be created through relevant technical documentation and the trade of spare parts, as well as collaboration with service centers (whether internally organized within the company or through partnerships with external independent repair centers). This approach allows for effective control over technology and the implementation of post-warranty obligations. Concurrently, collaboration with resale platforms facilitates increased utilization of repaired products. These efforts serve as additional sources of revenue for businesses, potentially compensating for reduced opportunities in new product sales due to enhanced repair practices.

Conclusion

        Producers have long used various intellectual property, safety, design, and cost obstacles to prevent consumers from repairing their own products or using independent repair services, resulting in premature scrapping of electronic equipment. In the U.S., President Biden signed a sweeping executive order in July 2021 directing the FTC to draft new right-to-repair regulations, and various U.S. states have passed some version of right-to-repair legislation [9]. Increasing numbers of "right to repair" legislative movements are trying to make it easier and cheaper for consumers to repair their products by requiring producers to share repair information, provide diagnostic tools and supply repair parts, and increasing transparency in repair services. In addition to avoid unnecessary waste, the rise of environmental awareness and climate change make it urgent to establish a circular economy, which is also the main reason why the right to repair legislation has received attention. After the legislation is passed, it will inevitably have an impact on enterprise operations, and early recognition of the direction of the scope of the right to repair, timely adjustment of relevant organizational resources and processes, will help establish a sustainable business environment.