Part
01
of one
Part
01
Research on trade-in programs
Hi there! Thanks for your question about successful trade-in programs. The short answer is that Briggs & Riley, Dillard's, Samsonite, Gazelle, and GoPro have all launched successful trade-in programs for their products. Briggs & Riley, Dillard's, and Samsonite are all luggage-based trade-in programs, while Gazelle and GoPro are electronics-based. Below you will find a deep dive of my findings and methodology.
METHODOLOGY
I began my search by looking into the eBags example that was provided. From there, I looked through news reports and local store reporting to find any additional luggage trade-in programs, which is how I came across the Briggs & Riley (homepage) A Case for Giving trade-in event. The Briggs & Riley (B&R) event was first hosted in 2015 and has been hosted each year since then. Dillard's hosts two Handbag and Watch Trade-In Events each year, with proceeds going to local charities. Samsonite Singapore has its own trade-in program, where customers have an opportunity to save on newer luggage models. Once I had exhausted all available and successful luggage or travel-based trade-in programs, I looked into retail or electronics trade-in programs. Gazelle is a trade-in resource for electronics such as phones and tablets. GoPro recently launched a trade-in program to help them regain their financial footing after significant losses in 2016. I defined "successful" as programs that assisted national or local charities, have been held for several years in a row, or are geared towards financial success.
A CASE FOR GIVING
The B&R trade-in event benefits over 100 charity partners like "foster homes, battered women's shelters, Dress for Success, and Ronald McDonald House." Traders receive a $100 credit if they donate a used B&R roller bag, or a $50 credit for a roller bag from another brand. The B&R event has been so successful in the past that other luggage companies have joined in and offered their own deals. IRV's Luggage joined B&R's A Case for Giving campaign in its second year. In 2016, B&R was able to work with over 100 charities and over 250 retail partners. According to B&R CEO Richard Krulik, the 2015 effort saw over 2,000 bags donated to the charities. Another company, Mori Luggage & Gifts, participated in the event in 2016. B&R's success is evident in research from the Consumer Reports National Research Center, which concluded that B&R "came out on top both for carry-on suitcases and for midsize and large suitcases" from 27,191 respondents.
HANDBAG & WATCH TRADE-IN EVENT
Since the mid-2000s, Dillard's has been hosting the annual Handbag & Watch Trade-In Event. This trade-in event is hosted across the country and takes place in participating Dillard's stores. Customers can bring in "any clean, used handbag or watch" to receive discounts on certain handbags and watches, depending on which brands are cooperating with the event. The coupons are scaled depending on the value of the items brought in, and all donated products go to local charities. As the event grew in popularity, more brands became accepted, such as Coach, which was added to the program as an eligible discount brand in 2008. The trade-in event takes place twice a year. In Huntsville, Alabama, the Lincoln Village Ministry was selected as the Parkway Place Dillard's charity for the March 2017 event. Area Sales Manager Tyler McGee explained to local news that "if customers participate in the trade-in, they are given a 25 percent [sic] discount on watches and handbags in store." While Dillard's has not regained its financial success from the mid-2000s, there have been spikes or at least a halt in revenue decline in the spring months, when the first Handbag and Watch Trade-In Event takes place. Additionally, fall is a good time for Dillard's revenue, which is when the second trade-in event is hosted. Stores are responsible for deciding when to hold their events, but it is typical for each store to hold one in the spring and fall.
SAMSONITE TRADE-IN
Every year, Samsonite Singapore hosts its own trade-in program (Nylon), allowing customers to trade-in their old Samsonite luggage for up to 40% off of their S'cure and Octolite models. Additionally, all donated pieces go to the Make-A-Wish Foundation, as does $10 per donation from Samsonite Singapore. According to revenue reports from YCharts, the company seems to have spikes in January each year, which is when the trade-in event is hosted in Singapore. Additionally, page 165 of this report shows that the Singapore segment of Samsonite International is continuing to increase in revenue. In 2016, the company made charitable donations in the amount of $0.7 million. In 2015, Singapore was one of the major contributors to Samsonite's success in the Asia-Pacific region, due to increasing interest in casual Samsonite travel products.
GAZELLE
Although it is not a luggage trade-in, Gazelle is one of the leading trade-in services for electronics. The process is simple, and unlike the previous programs, the trade-in occurs online rather than in-store. Customers are given a monetary offer based on their reported item's condition, after which they send the product to Gazelle for verification. Then, the trader is paid by check, PayPal, or Amazon Gift Card. Recently, Gazelle developed kiosks that allow customers to complete the entire process (including cash payment) instantly. According to their website, Gazelle has a 4.5-star rating from resellers, based on nearly 12,000 reviews. As far as Gazelle's image and impact, they have an ongoing collaborative effort with Cell Phones for Soldiers. When customers choose to sell their product directly to Gazelle for store credit, allowing them to make purchases through Gazelle, 15% of the trade price is donated to Cell Phones for Soldiers. (NY Times)
GOPRO TRADE-UP
In response to GoPro's "terrible 2016, [having lost] $373 million and recalling its malfunctioning Karma drones," the company launched a "trade-up program that allows GoPro owners to trade in their previous-generation Hero cameras for $100 off a Hero 5 Black or $50 off a Hero 5 Session." The process takes place online in a fashion similar to Gazelle. The customer fills out information online and then sends their old Hero camera to the company. The old camera is recycled and the customer is sent a Hero 5. While this is a new program, the company's decision to launch the program came after the company revealed that it needs "to reduce $200 million in operating costs for 2017," which is partially why the company laid off 270 employees "in its third round of layoffs since the beginning of 2016."
CONCLUSION
In short, Briggs & Riley, Dillard's, Samsonite Singapore, Gazelle, and GoPro all host their own trade-in events. Briggs & Riley's A Case for Giving benefits local and national charities, and involves the collaboration of over 250 retailers and 100 charities. Dillard's donates products from their Handbag & Watch event to local charities, while Samsonite allows customers up to a 40% discount on newer models. Gazelle and GoPro Trade-Up are both electronics-based trade-in services. Gazelle donates 15% of an item's value to Cell Phones for Soldiers when it is sold to the company, and GoPro recycles all of the previous-generation Hero devices they receive.
Thanks for using Wonder! Please let us know if there's anything else we can help with.