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Back Marketheld a press league on Thursday morning in Paris to talk about upcoming intersection launches and give an update on the company ’s current billet . If you ’re not familiar with the Gallic startup , it operates a marketplace of refurbished electronics devices — mostly smartphones . It has attract a lot of investor immediate payment in late years but has also been through tougher times .
In 2021 , just like many large technical school company , Back Market mount the wave of zero - interest rate policy around the world and raise an enormous amount of money : a$335 millionSeries D turn was followed by another$510 millionSeries eastward round mere month later .
After hit a valuation of $ 5.7 billion , Back Market clear that the economic system was slowing down . It conducted a small rung of layoffsin later 2022 , differentiate Gallic newspaper Les Échos it was “ the unspoilt elbow room to reach gainfulness in the coming year . ”
Fast - forward to Thursday’spress conferenceand the company was keen to prove its focus is back on product launching and new projects . Back Market said it wants to encounter new distribution channels and go premium so that more citizenry intend about buy a refurbished equipment rather of a newfangled one .
Finding customers where they are already
Over the retiring 10 years , Back Market has n’t just captured a seemly clod of the used electronics marketplace , it has flourish the market for refurbished smartphones . The delivery is simple : A refurbished twist is cheap than a new one and it ’s also better for the planet . Moreover , when it comes to smartphones , it has become much harder to determine why this year ’s manakin is good than last year ’s — so why crush out lots of money buy new to get only an incremental acclivity ?
The ship’s company does n’t handle smartphones and other electronic gimmick directly . alternatively , it partner with 1,800 companies that repair and resell old devices . So it ’s essentially a specialised service marketplace . Since its inception , it has sold 30 million refurbished equipment to 15 million customer .
Most Back Market customers buy gimmick on its website or through its mobile app . But the companionship has acknowledge it ’s sometimes constrained by its partners ’ inventory . This is why it wants to thrive supply and demand with strategic partnerships .
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For instance , it ’s partnering with Sony for PlayStation console table . “ A raft of multitude are coming to Back Market to taste and purchase their PlayStation , ” say co - founder and CEO Thibaud Hug de Larauze . But the upshot is that Back Market is stiffen when it come up to supplies for this character of equipment .
While many people call back about smartphone patronage - ins , most people do n’t guess about selling their old consoles . “ With this partnership with PlayStation by Sony , we are the only collaborator to trade in in every PlayStation within Sony ’s website , within the Sony PlayStation memory board , ” he noted .
As a answer , masses purchase a fresh PlayStation get a discount with trade - indium at check-out procedure and Back Market is no longer out of pedigree for quondam PlayStation consoles . This is a good deterrent example of what Back Market has in brain for next partnerships .
“ This is one of the first [ partnerships of this form ] but we really desire to bring it everywhere where customers are actually frequent unexampled . We want to get them where they are , to get their onetime technical school — to serve it to citizenry who require accession to freshen up tech , ” Hug de Larauze added .
On the smartphone front , business deal - ins are already quite popular . However , customers impose a phone depot usually terminate up purchase a new twist along with a farsighted - term plan .
Back Market is lead to partner with telecom companies so that customers can also get a deduction on refurbished devices in exchange for a farsighted - term plan . The first two partner for this are Bouygues Telecom in France and Visible , a subsidiary of Verizon Wireless in the U.S.
A new premium tier with official parts
Quality remains the main concern when it comes to buying refurbished devices . In addition to permit returns , the company is constantly track the rate of faulty devices on its platform and trying to get that bit down . Back Market now has a defective rate of 4 % , intend that one in every 25 phones does n’t work as expected in one way or another .
When customer bribe a smartphone on Back Market , they can choose between a equipment in “ clean , ” “ good , ” or “ excellent ” condition . The society has now drift out a new top tier — called “ premium . ”
The main difference between smartphones with no sign of use and agio refurbished gadget is that Back Market certifies that premium twist have been repaired with prescribed parts solely .
In addition to this new premium grade , Back Market is working on an app update to turn it into a smartphone associate . you’re able to register your smartphone with your Back Market account to experience tips to keep your equipment in good flesh for longer . They are also working on gamification features , include badges and reward .
Similarly , Back Market will make it easier to assure the economic value of your current phone . “ You unfold the Back Market app , you didder your headphone and you ’ll detect out , ” chief ware officer , Amandine Durr , explicate . This feature film will establish around Black Friday .
in conclusion , Back Market is going to utilise procreative AI to make it easier to graze the catalog . It can be hard to compare two smartphone models to understand which one is unspoiled for you . In a few calendar month , you ’ll be able to select two phones and get an AI - generated sum-up of how the two framework equate .
Profitability in Europe this year
When thinking about growth potential , alternatively of focus on the smartphone diligence , Back Market said it draws inspiration from the motorcar industry .
“ Nine people out of 10 are purchase a pre - owned car today , ” say Hug de Larauze . “ Everything has been create and lined up for that — the accessibility of trim part for everyone , you ’re not forced to repair your car where you purchased it . ”
likewise , repairability is changing for smartphones and spare parts , embark on with the European Union . By June 2025 , manufacturers will be force to sell their spare parts to the great unwashed and companies who desire to fix devices themselves .
The shift to refurbished gadget is also already well underway in Europe . “ Back Market is going to be profitable for the first fourth dimension in Europe in 2024 , ” aver Hug de Larauze . “ This is a big milestone for us because when we created the ship’s company and until very late … we had that recording label that allege : ‘ OK , this is an impact company . ’ encroachment think well tone , but the money is not there .
“ Well it ’s not the suit , it ’s actually defecate money , ” he added . Now , rent ’s see if Back Market can become the go - to destination for renovate gadget in more nation , begin with the U.S.
