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 the event you’re not conversant in the French startup it operates a market of refurbished electronics gadgets — largely smartphones. It’s attracted a number of investor money in recent times however has additionally been by way of harder instances.
In 2021, similar to many massive tech firms, Again Market rode the wave of zero-interest fee insurance policies around the globe and raised an infinite sum of money: 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 financial system was slowing down. It carried out a small spherical of layoffs in late 2022, telling French newspaper Les Échos it was “one of the best ways to realize profitability within the coming years”.
Quick ahead to Thursday’s press convention and the corporate was eager to reveal its focus is again on product launches and new initiatives. Again Market stated 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 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 easy: a refurbished gadget is cheaper than a brand new one and it’s additionally higher for the planet. Furthermore, relating to smartphones, it has turn into a lot tougher 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 gadgets straight. As a substitute, it companions with 1,800 firms that restore and resell previous gadgets. So it’s basically a specialised providers market. Since its inception, it’s offered 30 million refurbished gadgets to fifteen million prospects.
Most Again Market prospects purchase gadgets on its web site or by way of its cell app. However the firm has acknowledged it’s typically constrained by its companions’ stock. For this reason it desires to increase 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,” stated co-founder and CEO Thibaud Hug de Larauze. However the problem is that Again Market is constrained relating to provides for the sort of 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 companion to commerce in each PlayStation inside Sony’s web site, inside 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. This can be a good instance of what Again Market has in thoughts for future partnerships.
“This is likely one of the first [partnerships of this kind] however we actually need to convey it in all places the place prospects are literally buying new. We need to get them the place they’re, with a purpose to get their previous tech — with a purpose 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, prospects visiting a telephone retailer normally find yourself shopping for a brand new gadget together with a long-term plan.
Again Market goes to companion with telecom firms in order that prospects also can 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 components
High quality stays the principle concern relating to shopping for refurbished gadgets. Along with permitting returns, the corporate is consistently monitoring the speed of defective gadgets on its platform and attempting to convey 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 “honest”, “good” or “glorious” situation. The corporate has now rolled out a brand new prime tier — known as “premium”.
The primary 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 components 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 along with your Again Market account to obtain tricks to maintain your gadget 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 examine 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 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 onerous to match two smartphone fashions to know 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 evaluate.
Profitability in Europe this yr
When fascinated about progress potential, as an alternative of specializing in the smartphone trade, Again Market stated it attracts inspiration from the automotive trade.
“9 individuals out of 10 are buying a pre-owned automotive immediately,” stated Hug de Larauze. “All the pieces has been created and lined up for that — the supply of spare components for everybody, you’re not compelled to restore your automotive the place you bought it.”
Equally, repairability is altering for smartphones and spare components, beginning with the European Union. By June 2025, producers can be compelled to promote their spare components to individuals and corporations who need to repair gadgets themselves.
The shift to refurbished gadgets can be already effectively underway in Europe. “Again Market, goes to be worthwhile for the primary time in Europe in 2024,” stated Hug de Larauze. “This can be a huge milestone for us as a result of after we created the corporate and till very not too long ago… we had that label that stated: ‘OK, that is an impression firm.’ Affect means good emotions, however the cash isn’t there.
“Nicely it’s not the case, it’s truly creating wealth,” he added. Now, let’s see if Again Market can turn into the go-to vacation spot for refurbished gadgets in additional nations, beginning with the U.S.
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