The COVID-19 has put a lot of industries and businesses in trouble. The deadly pandemic has made governments impose nation-wide lock-downs. Such lock-downs restrict the functioning of offices, factories, schools and colleges. Furthermore, most countries have also imposed travel bans and restrictions on public transport. With transportation being hit, only essential services are now functioning in most states. This has made things difficult for start-ups all around the world. Most companies are finding it difficult to get their hands on raw materials. However, things are looking up for the catering company Back Market. Here’s a look at how the COVID-19 has led to Refurbished Market’s significant growth on a global scale.
Moving Ahead During Such Tough Times
This Paris-based start-up is a specialist when it comes to refurbished products. They allow their customers to submit their old devices and then restore and resell them. The company is a significant player in the second-hand e-commerce market. The COVID-19 has forced a lot of people to stay at home and work remotely. Therefore, more than ever before, people need access to better mobile devices. People who used their office technology for work no longer have that privilege.
Therefore, more people are trying to get their hands on better tech at more affordable prices. Hence, most people are looking at the refurbished market to buy suitable devices at lower rates. No longer having access to high-end tools is making people upgrade their own devices. Companies such as Back Market help them to do this efficiently. The company accepts their devices and then allows them to buy a second-hand model. Therefore, the search for better tools to better their remote working experience is helping Back Market grow.
“Is Back Market reliable?”
The most prominent stigma that the company has had to overcome in recent years is whether they are reliable. The company essentially allows users to ship their old devices to them and exchange those for newer, better accessories. All the users have to do is pay the difference in value, and they get to update their technology. Thibaud Hug de Larauze, who is the company’s CEO, said that the service is currently available only in France, but that they are planning an expansion soon. From the second quarter of this year, Back Market will start operation in international markets.
Growth of Back Market
The company, founded in 2014 was successful in raising € 48 million in funds thanks to two Series B investment rounds in June 2018. The company has since been running profitably with them still having money to spend on financing and expansion. While the company does not publish its merchandise volume, the CEO had stated that the company is growing in triple-digit figures. There has been a significant increase in the demand for laptops, scanners and printers. However, the COVID-19 scare has reduced the need for refurbished mobile phones, as people are trying to save money for essential items. However, the demand for laptops and printers is linked to more people practicing remote working now.
Global Demand
In the past two weeks alone, the company has received a sleuth of orders from Italy, as the entire country has gone into strict lock-down. With the country having been ravaged by the COVID-19, almost the whole nation has gone into lock-down with everyone working from home. Therefore, IT professionals have no option but to upgrade their devices and start working from home at full capacity.
Shut Down of Stores
Another factor that has helped Back Market grow so fast is that mobile phone manufacturers such as Apple and Samsung have had to shut their retail stores around the world. Such a move has helped make Back Market a leading supplier of electronic goods, helping them improve their market position. With almost all major electronics retailers and operators staying closed in Europe, Back Market has been able to corner this market position due to its internet-based operation. Also, the fact that Back Market offers a minimum 6-month warranty on the devices they sell has made them look reliable and credible to their users. Furthermore, the company offers consumers access to a plethora of refurbished products at 30 to 70% lower prices. The company’s innovative model has helped it become the leader of the European refurbished market in less than 4 years. This success has made it expand to American shores, with operations beginning in the US in 2018. Both the growth of the refurbished market and the impact of COVID-19 can be held responsible for the three-digit growth that Back Market now enjoys. With the refurbished market growing by 13% in the period 2017-2019, it sure does look like Back Market will be enjoying success in the months to come.
Being a cinephile with a love for all things outdoorsy, Athulya never misses a chance to chase inspiring stories or poke fun at things, even when the subject is herself. Currently pursuing a degree in mechanical engineering, she is someone innately interested in technical and scientific research. Music reviews and op-eds define her as they allow her to explore different perspectives. Though sometimes she thinks she makes more sense playing the guitar than she does while writing.