📊 Record Valuations & Strategic Shifts
Back Market, a French startup that operates a marketplace for refurbished electronics, raised $845M in 2021, reaching a $5.7B valuation. However, as the global economy slowed, the company made strategic shifts to focus on profitability. After a small round of layoffs in 2022, Back Market is now focused on new partnerships and product innovations to attract more customers.
📱 Expanding Distribution Channels
Back Market has sold 30M devices to 15M customers but faces challenges in supply constraints. To tackle this, the company is partnering with Sony to become the exclusive partner for PlayStation trade-ins. This allows customers to receive discounts on new consoles while supplying Back Market with more inventory. Similar partnerships are in the works, especially with telecom companies like Bouygues Telecom in France and Visible in the U.S.
🛠️ Introducing Premium Tier & AI Tools
Quality remains a concern for refurbished electronics. To address this, Back Market introduced a “premium” tier, ensuring devices are repaired exclusively with official parts. Additionally, they’re updating their app to help users maintain their devices longer, with features like shake-to-check trade-in values and AI-generated comparisons between different smartphone models.
💶 Profitability & Future Outlook
Back Market's profitability is a critical milestone, especially in Europe, where it expects to be profitable in 2024. CEO Thibaud Hug de Larauze noted that the company is transitioning from an "impact" label to a profitable business model. With the European Union mandating easier repairability by 2025, Back Market is well-positioned to grow, especially as it eyes expansion into the U.S. market.
Would you buy a refurbished phone if it came with official parts?
