The reconditioned smartphone market - France (2024)

1.2 The global refurbished smartphone market

The global refurbished cell phone market is projected to reach over $*** billion by ****, compared with $**.** billion in ****. This market is expected to grow at a compound annual growth rate (***) of *. **% between **** and ****.

Evolution of the global refurbished smartphone market size World, ****-****, billions of dollars Source: ****

This refurbished trend has been accelerated by various factors, such as the increasing digitization of society following the pandemic of the Covidmia of Covid-**, shortages and supply difficulties that have penalized the production of new devices, and the development of e-commerce, which offers high visibility to these products[***].

1.3 The European market

The size of the European refurbished cell phone market was estimated at $*.** billion in ****, and is expected to reach $*.** billion in ****. By ****, this market is forecast to reach around$** billion, with a compound annual growth rate (***) of *.**% over the period **** to ****.

Trends in the European refurbished smartphone market Europe, ****-****, in billions of dollars Source: ****

The European market for refurbished smartphones shows a sustained and promising growth trajectory between **** and ****. This trend reflects a growing interest in refurbished products, probably driven by economic and environmental factors, as well as increased consumer awareness of sustainability.

Indeed, projections show that sales could reach $**.** billion by ****, reflecting a more than twofold increase in market size over a period of less than ten years.

Breakdown of Europeans who have already bought or not bought a refurbished smartphone France, ****, % (***) Source: Circular The graph above shows that **% of respondents have already purchased a refurbished smartphone, while **% have not. This distribution indicates that, although the refurbished smartphone market has gained in popularity and acceptance among a significant proportion of the European population, a majority have not yet taken the plunge. This suggests potential room for growth in this segment, particularly in terms of consumer awareness and confidence in ...

1.4 The French market

The refurbished phone market in France is booming, so much so that the dynamic has given international stature to French companies, including the world leader in refurbished phones, Back Market. With sales of *** million euros in ****, and growth of **%, the phones segment is the most buoyant in the sector[***].

Sales trend for refurbished smartphones France, ****-****, in billions of euros Source: ****

The graph above shows a steady and significant rise in the refurbished smartphone market. The market has seen a steady increase in revenues, from *.** billion euros in **** to *.** billion euros in ****. This growth reflects the increasing adoption of refurbished smartphones by French consumers. The noticeable acceleration in sales since **** also underlines a growing awareness on the part of consumers and greater confidence in the quality of refurbished devices.

The trend shows a dynamic sector in full expansion, supported by factors such as the search for more sustainable solutions and the demand for cost-effective alternatives to new smartphones.

Percentage of refurbished smartphone sales as a share of total phone sales France, ****-****, % Source: ****

In ****, refurbished smartphones accounted for *.*% of total phone sales, a proportion that fluctuated slightly before showing notable growth from **** onwards. This share climbed to **. *% in ****, almost doubling in ...

2.1 Motivations and disincentives for buying refurbished smartphones

Purchasing levers for refurbished smartphones France, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

The most decisive factor in the purchase of a refurbished smartphone, mentioned by **% of those surveyed, is the attractiveness of the price, underlining the fact that cost remains the overriding criterion for the majority of buyers. This finding is indicative of a trend to seek cost-effective solutions without compromising quality.

In addition, **% of participants are motivated by environmental considerations, such as promoting re-use and reducing ecological impact, reflecting a growing awareness and sensitivity to sustainability issues.

The presence of a warranty, mentioned by **% of those surveyed, is also an important aspect, indicating that perceived safety and reliability are essential to consumers.

Finally, **% of those surveyed valued the quality of customer service, demonstrating that after-sales support plays a significant role in the purchasing decision.

Important points in the decision to buy a refurbished smartphone France, ****, % Source: ****

The chart above reveals several clear priorities for consumers. The overriding concern, cited by **% of respondents, is ensuring that all data is completely deleted, underlining a strong sensitivity to the security of personal information. Just behind this, **% of respondents attach importance to the possibility of easily transferring their data, demonstrating a preference for solutions that facilitate continuity of use ...

2.2 Profile of refurbished phone buyers

Percentage of parents who have already bought a refurbished phone for at least one of their children France, ****, % Source: ****

In ****, **% of parents had already opted for a refurbished phone, demonstrating the growing acceptance of this type of product within the family setting. This figure indicates a growing confidence in refurbished phones as a viable and cost-effective option for children.

Share of refurbished smartphone buyers by age group France, ****, % Source : Latribune Young adults, particularly those aged ** to **, are the most likely to turn to the refurbished smartphone market, with a **% purchase share. This trend could be attributed to economic considerations and greater awareness of the environmental benefits of refurbished products. The **-** age bracket follows with a significant **% share, indicating a continued preference for more affordable solutions while maintaining a demand for reliable, modern technology. By contrast, only **% of people over ** are turning to the refurbished smartphone market, which may reflect reluctance linked to familiarity with technology.familiarity with technology, a preference for new products, or concerns about the quality of refurbished devices. This distribution shows that the younger generations are the main drivers of growth in the refurbished smartphone market in France, highlighting an opportunity for suppliers to target their strategies ...

2.3 The most popular reconditioned phones: Apple in the lead

**** ranking of the most popular refurbished phone models :

Breakdown of top ** refurbished smartphone models by brand France, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

In ****, the refurbished smartphone market in France is largely dominated by two main brands, Apple and Samsung, representing respectively **% and **% of the top ten best-selling models.

This breakdown shows a clear preference for Apple products among consumers of refurbished smartphones, underlining the brand's enduring appeal for its reliable, high-performance, well-supported devices in the aftermarket. Samsung, though less dominant, retains a significant share at **%, indicating stable demand for its models, renowned for their diversity and value for money.

Apple's dominance in this segment could be attributed to the perceived value of iPhones, which tend to maintain high performance and steady demand even after reconditioning. In contrast, Samsung's strong presence reflects a preference for a wider range of features and prices. This breakdown underlines the importance of perceived quality and brand loyalty in consumer purchasing decisions in the refurbished smartphone market in France.

3.1 Value chain: the stages of reconditioning

The table below gives an overview of the various stages in the reconditioning process:

Source: ****

However, the process will depend on the condition of the devices recovered. In some cases, when the product is almost new, reconditioning is limited to repackaging[***].

The reconditioning process is shaping up to be a veritable industry, based on certified trades, and is set to create new jobs in the years to come.

Reconditioning players can choose between two strategies: integrating the steps described above, or simply forming a "marketplace"-type platform bringing together the supply of reconditioned products. The first option is chosen by most players, while the second is favored by industry-leading start-up Back Market. In fact, **% of buyers turned to platforms such as Back Market or Amazon in ****. However, this is * points less than in ****.

3.2 A difficult supply of products for reconditioning

While the refurbished sector is developing rapidly, one of the major obstacles to its deployment is the scarcity of appliances and parts for refurbishing.

As far as devices are concerned, they are recovered in a variety of ways, as the previous section reminds us. However, a major source of phones for reconditioning remains the United States, since Americans, with a leasing system, change their business phone every six or twelve months. In a report published in February **** by the DGCCRF, **% of reconditioners were able to communicate the origin of their products. [***]

When an appliance needs repairing, the question arises as to the supply of spare parts. When original parts are not available, the challenge is to find compatible parts. [***] While reusing compatible parts from old phones can reduce the ecological footprint, it can also lead to a reduction in quality of use or a loss of functionality. For example, **% of professionals surveyed by the DGCCRF were unable to prove that they carried out functional checks.

This difficulty in sourcing can be a source of lack of confidence for consumers, despite the fact that refurbished products are more reliable than the second-hand market. Indeed, the role of technical experts within the industry ...

3.3 Low margins

While the market is booming, refurbishers are struggling to remain profitable. Their margins are between **% and **%. Benoit Varin, co-founder of Recommerce, explains that his company, with a barely positive EBITDA, is barely breaking even, while its competitors are often making losses. Competition on the market is squeezing prices, especially as many new smartphone models sell for less than €***, and consumers are wary of refurbished products. [***]

To support the industry, the government has therefore drawn up a €** million financial package for ****. According to the government's analysis, the industry is "fragile, with low margins and fierce international competition from players who do not always respect the normative framework applicable to them". Direct financial aid will therefore be paid to players "respecting the normative framework in force", for each reconditioned phone, computer or tablet sold[***].

3.4 Distribution of refurbished smartphones

Main places of purchase for refurbished smartphones France, ****, % Source: ****

The chart above highlights the diversity of distribution channels used by consumers. The majority of purchases are still made in-store (***), underlining a notable preference for physical purchasing, probably due to the opportunity to see and try out products before purchase, as well as to benefit from personalized advice. Nevertheless, online purchasing also accounts for a significant share (***), reflecting the growing power of e-commerce and the convenience offered by digital platforms for finding and acquiring refurbished smartphones. Telephone operators continue to play a crucial role in this market (***), offering refurbished smartphones often associated with attractive packages, making access easier for some consumers. Finally, refurbished smartphone specialists play an important role in this landscape, underlining their expertise and ability to inspire confidence in buyers by guaranteeing product quality and reliability.

A diversity of online providers:

The distribution of refurbished smartphones is characterized by a strong online presence, with an impressive diversity of specialized and generalist platforms offering these products. These platforms offer a variety of models and brands, accompanied by warranties and after-sales services, reinforcing buyers' confidence in the quality and reliability of refurbished smartphones. The diversity of online offerings also makes it possible ...

4.1 A diversified offering

The range of refurbished smartphones on the market is remarkably diverse, responding to a growing variety of consumer needs and preferences. This diversity manifests itself on several levels, including the range of brands available, the condition of the devices, the functionalities offered and the wide range of prices.

Brand diversity

Consumers have access to a multitude of refurbished smartphone brands, among which market giants such as Apple and Samsung dominate. However, other brands such as Huawei, Xiaomi and Google are also well represented. This variety enables consumers to choose from a wide range of options, meeting different expectations in terms of quality, reliability and technical features.

Different smartphone states

Refurbished smartphones are available in various states, ranging from like-new devices, often with no visible signs of wear, to models with a few superficial signs of use. This classification, often indicated by terms such as "Grade A", "Grade B" or "Grade C", enables buyers to make informed choices according to their aesthetic and budgetary priorities.

A wide range of prices

Prices for refurbished smartphones vary considerably, reflecting not only the condition of the device but also the specific model and its popularity. This pricing flexibility offers a cost-effective solution for consumers looking ...

4.2 Sales prices

The purchase of a reconditioned electronic device allows you to acquire an almostnew product at a reduced price, between -** and -**%,and up to -**% in some cases. In the case of smartphonesthe iPhoneis the most popular product on this market. There are also the latest models, as well as those from certain brands that are making abreakthroughsuch asSamsungorHuawei. In the table below we detail some prices (***):

Source: ****

The table shows a price comparison between new and refurbished smartphones, highlighting significant price differences. The prices of refurbished models are significantly lower than those of new ones, illustrating the potential savings for consumers. For example, a refurbished iPhone ** *** GB costs around **% less than a new one, while a refurbished Galaxy Z Flip * is sold at over **% less than a new one.

This trend is consistently reflected across all the brands and models listed, underlining the considerable financial advantage associated with buying refurbished smartphones.

Evolution of the average purchase price of a new vs. refurbished smartphone France, ****-****, in € Source: ****

The graph above shows a significant increase in prices for both categories, with a marked upward trend since ****. This period has been particularly influenced by the global shortage of electronic chips and ...

5.1 Very recent regulations

With the rise of the circular economy and trends towards second-hand and repair, a whole area of the law is evolving, to give rise to new regulations.the February **, **** law on the fight against waste and the circular economy provides for a decree whose aim will be to delimit the right to use the term "reconditioned product." The decree was published in the Journal Officiel on February **, ****. From now on, a distributor will have the right to claim the name "reconditioned" for its products if they meet two conditions: Tests have been carried out on the product or spare part, in order to verify the correct implementation of the functionalities that the consumer can legitimately expect from the product, in compliance with legal and safety obligations; Interventions have been carried out on the product or spare part, in order to guarantee the correct implementation of its functionalities, as well as to delete data from previous use. The aim is to legislate on product designations that influence purchasing decisions. Similarly, the decree obliges reconditioners to use the expression"perfect condition" instead of "as new" on their products, and reserves the metion "reconditioned in France" for appliances whose operations have been carried out ...

5.2 Standards in force

Companies in the sector may wish to comply with a number of international standards to guarantee the consumer of the quality of their work and thus gain their trust. Compliance with the following standards may be of interest:

The American R*:**** standard (***): recyclers of electronic equipment can thus demonstrate their concern for the health, environmental and safety issues involved in processing the products they resell[***] ; The ISO ***** environmental management standard: these requirements are designed to reinforce the environmental performance of companies, which is a strong signal to customers who are aware of these issues.

5.3 The different warranties

The legal guarantee of conformity:

In France, the legal warranty of conformity is a mandatory right that protects consumers when purchasing new, used or reconditioned goods, for a period of two years. It applies when the goods purchased are unfit for the use usually expected, do not correspond to the description given by the seller, do not possess the agreed qualities, or present manufacturing defects or incorrect installation. Beyond the first year, the consumer must prove that the defect existed prior to purchase.

This warranty covers not only defects in the goods themselves, but also those related to packaging, assembly instructions and installation, if carried out by the seller or under his responsibility. It does not apply if the purchaser was aware of the defect at the time of purchase, if the defect results from materials supplied by the purchaser, or in the case of sales between private individuals or between professionals.

It applies only to sales of tangible goods (***), goods to be manufactured or produced, and goods with digital elements. Goods sold at public auction or by an auctioneer are not covered by this warranty.

In the event of a defect, the consumer may request repair or replacement of the ...

6.1 Player segmentation

The remanufacturing sector is still in its infancy, and the players in it are therefore evolving according to a sometimes blurredpositioning. Refurbishers in the strict sense of the term are players who integrateall the stages involved in refurbishingof computer hardware: collection, inspection, repair, packaging, sale and after-sales service. We propose the following typology:

• Back Market
• YesYes
• Largo
• Recommerce
• Cdiscount (CNova)
• Save
• Ecodair
• Itancia
• CEAT Electronique
• DPA Europe Reborn
• Keeep
• Mobile Club
• Orange Groupe
• Cordon Groupe
• ASWO
• Codeo
• Media Clinic
• Easy Cash
• Smaaart - Econocom Factory (Econocom Groupe)