The latest iPhone in perfect working condition sold with 60 % of the price of a new one because of small scratches on the hull ? Banco ! Created in November 2014, the start-up parisienne Back Market is a market place, which offers more than 20 000 references of electronic products used, refurbished, and guaranteed for a minimum of six months. Smartphones, tablets and computers may as well enter in the round of the circular economy.
A round that is spinning faster and faster. In 2015, Back Market has enabled its partners to make 3 million euros of sales. In 2016, this number had risen to 30 million. He again tripled by 2017 to reach 95.5 million euros. Knowing that the company takes a commission of 10 %, its turnover is following the same upward curve.
“Our business is selecting the best professionals”
“Unlike our major competitors, we have made the choice not to proceed with the reconditioning ourselves. Our job is to select the best professionals”, explains the CEO and co-founder, Thibaud Hug of Larauze. Back Market works as well with 250 independent workshops across Europe, by ensuring that their services meet its quality criteria. A strategy that is less costly in capital than if it had to manage its own stocks. The 7 million euros raised in 2017 are the means to hire round-arm. The start-up has 80 employees and continues to recruit developers or marketing experts.
As to go fast, go far. Already cost-effective in france, Back Market is also present in Spain, Germany, Italy and Belgium. But it is the american market that attracts the nugget. Across the Atlantic, where the operators have stopped subsidising smartphones, a year ago, consumers are increasingly many to look for alternatives to buying new. Back Market just opened a new office in New York and is already working with ten workshops for remanufacturing to be successful in this massive market.
to Create the reflex Back Market
The wager of the young shoot? Shake Amazon and install a reflex Back Market for purchase of electrical or electronic equipment used. Tvs, coffee machines, toaster, microwave, mixers or clippers are already referenced, even if the smartphones still account for 70% of sales. “It is difficult for the consumer to know what is a good refurbished product. We want to become a world quality reference in the field”, aims Thibaud Hug of Larauze.
BY the NUMBERS
Volume of business in 2017 : 95.5 million
7 million euros raised in 2017