Newe, towards a new paradigm in consumer habits

Circularity in pay-per-use models.

Mass production and consumption patterns are at the heart of today's environmental challenges. The typical "extract, produce, use and throw away" mentality is not helping manufacturers strive to create more sustainable products. On the contrary, this mentality encourages overuse of resources and unbridled sales growth. All is not lost, however, as the circular economy and circular business models emerge as key solutions.

Have you heard of "pay-as-you-go" or "product-as-a-service" (PaaS) models? They are the ideal alternative to traditional purchasing. Imagine being able to enjoy all the functionalities of a product without having to own it outright. How is this possible? Well, by renting, leasing, subscriptions or even try-before-you-buy. It's like having VIP access to a product without having to worry about ownership.

When a customer chooses to purchase a product as a service, they enter into an agreement with the provider company. Instead of buying the product itself, the customer pays for access to the service for a specified period of time. At the end of that period or when the customer stops using the product, it is returned to the supplier to continue its life cycle.

This approach responds to the real needs of consumers, who do not always want to own the products, but to benefit from their use. It also motivates manufacturers to be responsible not only for the quality of their products from the design stage, but also for their maintenance over time!

Newe and the democratization of responsible consumption.

Pablo and Ramón were pioneers in Spain when they detected this trend in the market. It turns out that any business could offer this type of model, right? But here comes the unexpected twist: integrating these modalities into daily sales operations and internal management systems is a long and costly road. Logistics, warehousing, insurance and even the way of interacting with the customer change completely compared to traditional models. No wonder many people think twice before trying their luck.

NEWE was created to solve this problem by offering manufacturers and distributors an alternative outlet for their products based on rotation and optimization of their useful life over time. With its innovative software, it allows you to quickly and easily integrate rental, subscription, leasing or try-before-you-buy options both on the web and in the back office of your customers. It is a tool that transforms any manufacturer or distributor with an online store into an expert in circular models. No hassle, no friction, both for the manufacturer and the consumer.

But what happens when we rent a product instead of buying it? What is the impact on the planet? First of all, by rotating products among consumers, we avoid the production of new units for consumption, with the CO2 emissions associated with this process. On the other hand, all the products we stop using end up becoming waste, which in most cases end up in landfills because they are not recycled correctly. When we choose to rent, we not only extend the useful life of these products, but we also share co-responsibility with the manufacturer for guaranteeing a second life for them without endangering the future of the planet.

A new trend on the rise.

NEWE's good traction shows that more and more people are committed to seeking a smarter and more conscious way of consuming. Since its inception in 2020, the company has seen its revenues and the number of transactions on its platform grow relentlessly. The other side of the coin are all the retailers that are added each month to its customer base, allowing us to rent from a cell phone, to a computer, a washing machine or even a suit easily and with all the guarantees of your favorite brands.

A project that adds value and sheds a new perspective on circular economy models. At Bolsa Social Fund we share Pablo and Ramón's vision that technology should serve as an enabler to promote more sustainable production and consumption dynamics and we are happy to be able to accompany them on this journey.

Remember, if you are in the dilemma of buying or renting, think twice: do you want a committed relationship with that product or do you prefer to have an 'affair' with no strings attached? The decision is yours, but at least renting won't leave you with broken hearts and cluttered spaces!

Cristina Guzmán

Investment Analyst at Bolsa Social Fund

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