Again Market held a press convention on Thursday morning in Paris to speak about upcoming product launches and provides an replace on the corporate’s present scenario. In the event you’re not accustomed to the French startup it operates a market of refurbished electronics units — largely smartphones. It’s attracted a number of investor money in recent times however has additionally been by means of more durable instances.
In 2021, identical to many giant tech firms, Again Market rode the wave of zero-interest fee insurance policies around the globe and raised an unlimited amount of cash: a $335 million Collection D spherical was adopted by one other $510 million Collection E spherical mere months later.
After reaching a valuation of $5.7 billion, Again Market realized that the economic system was slowing down. It performed a small spherical of layoffs in late 2022, telling French newspaper Les Échos it was “the best way to achieve profitability in the coming years”.
Quick ahead to Thursday’s press convention and the corporate was eager to display its focus is again on product launches and new initiatives. Again Market mentioned it desires to seek out new distribution channels and go premium in order that extra individuals take into consideration shopping for a refurbished machine as an alternative of a brand new one.
Discovering prospects the place they’re already
Over the previous 10 years, Again Market hasn’t simply captured a good chunk of the secondhand electronics market, it has expanded the marketplace for refurbished smartphones. The pitch is straightforward: a refurbished machine is cheaper than a brand new one and it’s additionally higher for the planet. Furthermore, on the subject of smartphones, it has change into a lot more durable to outline why this yr’s mannequin is healthier than final yr’s — so why shell out plenty of cash shopping for new to get solely an incremental improve?
The corporate doesn’t deal with smartphones and different digital units instantly. As a substitute, it companions with 1,800 firms that restore and resell previous units. So it’s primarily a specialised companies market. Since its inception, it’s bought 30 million refurbished units to fifteen million prospects.
Most Again Market prospects purchase units on its web site or by means of its cell app. However the firm has acknowledged it’s typically constrained by its companions’ stock. For this reason it desires to develop provide and demand with strategic partnerships.
For example, it’s partnering with Sony for PlayStation consoles. “A lot of people are coming to Back Market to try and purchase their PlayStation,” mentioned co-founder and CEO Thibaud Hug de Larauze. However the concern is that Again Market is constrained on the subject of provides for this kind of machine.
Whereas many individuals take into consideration smartphone trade-ins, most individuals don’t take into consideration promoting their previous consoles. “With this partnership with PlayStation by Sony, we are the only partner to trade in every PlayStation within Sony’s website, within the Sony PlayStation store,” he famous.
Because of this, individuals shopping for a brand new PlayStation get a reduction with trade-ins at checkout and Again Market is not out of inventory for previous PlayStation consoles. This can be a good instance of what Again Market has in thoughts for future partnerships.
“This is one of the first [partnerships of this kind] but we really want to bring it everywhere where customers are actually shopping new. We want to get them where they are, in order to get their old tech — in order to serve it to people who want access to refurbished tech,” Hug de Larauze added.
On the smartphone entrance, trade-ins are already fairly widespread. Nonetheless, prospects visiting a cellphone retailer often find yourself shopping for a brand new machine together with a long-term plan.
Again Market goes to associate with telecom firms in order that prospects may also get a reduction on refurbished units in change for a long-term plan. The primary two companions for this are Bouygues Telecom in France and Seen, a subsidiary of Verizon Wi-fi within the U.S.
A brand new premium tier with official elements
High quality stays the principle concern on the subject of shopping for refurbished units. Along with permitting returns, the corporate is continually monitoring the speed of defective units on its platform and attempting to carry that quantity down. Again Market now has a faulty fee of 4%, that means that one in each 25 telephones doesn’t work as anticipated in a technique or one other.
When prospects purchase a smartphone on Again Market, they’ll select between a tool in “fair”, “good” or “excellent” situation. The corporate has now rolled out a brand new high tier — known as “premium”.
The principle distinction between smartphones with no indicators of use and premium refurbished units is that Again Market certifies that premium units have been repaired with official elements solely.
Along with this new premium tier, Again Market is engaged on an app replace to show it right into a smartphone companion. You’ll be able to register your smartphone together with your Again Market account to obtain tricks to hold your machine in a fine condition for longer. They’re additionally engaged on gamification options, together with badges and rewards.
Equally, Again Market will make it simpler to verify the worth of your present cellphone. “You open the Back Market app, you shake your phone and you’ll find out,” chief product officer, Amandine Durr, defined. This characteristic will launch round Black Friday.
Lastly, Again Market goes to make use of generative AI to make it simpler to browse the catalog. It may be arduous to check two smartphone fashions to grasp which one is healthier for you. In just a few months, you’ll be capable to choose two telephones and get an AI-generated abstract of how the 2 fashions examine.
Profitability in Europe this yr
When interested by development potential, as an alternative of specializing in the smartphone trade, Again Market mentioned it attracts inspiration from the automotive trade.
“Nine people out of 10 are purchasing a pre-owned car today,” mentioned Hug de Larauze. “Everything has been created and lined up for that — the availability of spare parts for everyone, you’re not forced to repair your car where you purchased it.”
Equally, repairability is altering for smartphones and spare elements, beginning with the European Union. By June 2025, producers will likely be pressured to promote their spare elements to individuals and firms who need to repair units themselves.
The shift to refurbished units can be already effectively underway in Europe. “Back Market, is going to be profitable for the first time in Europe in 2024,” mentioned Hug de Larauze. “This can be a massive milestone for us as a result of once we created the corporate and till very not too long ago… we had that label that mentioned: ‘OK, this is an impact company.’ Impression means good emotions, however the cash just isn’t there.
“Well it’s not the case, it’s actually making money,” he added. Now, let’s see if Again Market can change into the go-to vacation spot for refurbished units in additional nations, beginning with the U.S.
