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 state of affairs. In case you’re not conversant in the French startup, it operates a market of refurbished electronics gadgets — largely smartphones. It has attracted lots of investor money lately however has additionally been via more durable occasions.
In 2021, identical to many giant tech firms, Again Market rode the wave of zero-interest price insurance policies all over the world and raised an infinite amount of cash: a $335 million Sequence D spherical was adopted by one other $510 million Sequence E spherical mere months later.
After reaching a valuation of $5.7 billion, Again Market realized that the economic system was slowing down. It carried out a small spherical of layoffs in late 2022, telling French newspaper Les Échos it was “the easiest way to attain profitability within the coming years.”
Quick-forward to Thursday’s press convention and the corporate was eager to exhibit its focus is again on product launches and new initiatives. Again Market mentioned it desires to search out new distribution channels and go premium in order that extra individuals take into consideration shopping for a refurbished gadget as a substitute of a brand new one.
Discovering clients the place they’re already
Over the previous 10 years, Again Market hasn’t simply captured an honest chunk of the secondhand electronics market, it has expanded the marketplace for refurbished smartphones. The pitch is easy: A refurbished gadget is cheaper than a brand new one and it’s additionally higher for the planet. Furthermore, in relation to smartphones, it has turn into a lot more durable to outline why this yr’s mannequin is best than final yr’s — so why shell out a lot of cash shopping for new to get solely an incremental improve?
The corporate doesn’t deal with smartphones and different digital gadgets straight. As an alternative, it companions with 1,800 firms that restore and resell previous gadgets. So it’s basically a specialised providers market. Since its inception, it has offered 30 million refurbished gadgets to fifteen million clients.
Most Again Market clients purchase gadgets on its web site or via its cellular app. However the firm has acknowledged it’s generally constrained by its companions’ stock. This is the reason it desires to develop provide and demand with strategic partnerships.
For example, it’s partnering with Sony for PlayStation consoles. “Lots of people are coming to Again Market to try to buy their PlayStation,” mentioned co-founder and CEO Thibaud Hug de Larauze. However the difficulty is that Again Market is constrained in relation to provides for any such gadget.
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’re the one accomplice to commerce in each PlayStation inside Sony’s web site, throughout the Sony PlayStation retailer,” he famous.
Consequently, 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. It is a good instance of what Again Market has in thoughts for future partnerships.
“This is without doubt one of the first [partnerships of this kind] however we actually wish to carry it in every single place the place clients are literally procuring new. We wish to get them the place they’re, as a way to get their previous tech — as a way to serve it to individuals who need entry to refurbished tech,” Hug de Larauze added.
On the smartphone entrance, trade-ins are already fairly in style. Nonetheless, clients visiting a telephone retailer normally find yourself shopping for a brand new gadget together with a long-term plan.
Again Market goes to accomplice with telecom firms in order that clients may get a reduction on refurbished gadgets 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 in relation to shopping for refurbished gadgets. Along with permitting returns, the corporate is continually monitoring the speed of defective gadgets on its platform and making an attempt to carry that quantity down. Again Market now has a faulty price of 4%, that means that one in each 25 telephones doesn’t work as anticipated in a method or one other.
When clients purchase a smartphone on Again Market, they’ll select between a tool in “truthful,” “good,” or “glorious” 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 gadgets is that Again Market certifies that premium gadgets 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 may register your smartphone along with your Again Market account to obtain tricks to hold your gadget in fine condition for longer. They’re additionally engaged on gamification options, together with badges and rewards.
Equally, Again Market will make it simpler to test the worth of your present telephone. “You open the Again Market app, you shake your telephone and also you’ll discover out,” chief product officer, Amandine Durr, defined. This function 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 exhausting to match two smartphone fashions to know which one is best for you. In just a few months, you’ll have the ability to choose two telephones and get an AI-generated abstract of how the 2 fashions examine.
Profitability in Europe this yr
When enthusiastic about progress potential, as a substitute of specializing in the smartphone business, Again Market mentioned it attracts inspiration from the automobile business.
“9 individuals out of 10 are buying a pre-owned automobile as we speak,” mentioned Hug de Larauze. “All the things has been created and lined up for that — the supply of spare elements for everybody, you’re not pressured to restore your automobile the place you bought it.”
Equally, repairability is altering for smartphones and spare elements, beginning with the European Union. By June 2025, producers can be pressured to promote their spare elements to individuals and corporations who wish to repair gadgets themselves.
The shift to refurbished gadgets can also be already effectively underway in Europe. “Again Market goes to be worthwhile for the primary time in Europe in 2024,” mentioned Hug de Larauze. “It is a large milestone for us as a result of after we created the corporate and till very lately… we had that label that mentioned: ‘OK, that is an influence firm.’ Impression means good emotions, however the cash just isn’t there.
“Properly it’s not the case, it’s really being profitable,” he added. Now, let’s see if Again Market can turn into the go-to vacation spot for refurbished gadgets in additional international locations, beginning with the U.S.