Swapping Screens: A Look at Rebuy's Thriving Second-Hand Electronics Market
In the Heart of the Electronics Resale Boom, Rebuy Shines
"Secondhand goods are gaining popularity among consumers"
In the spirit of sharing under the Christmas tree, we find second-hand gems waiting to delight new owners worldwide. As it turns out, second-hand is all the rage, even within the festive season, as a survey reveals. Germans are more inclined to give away used items with 54% doing so this year - electronics and accessories being top picks. Sustainability and savings offer a snug fit in today's budget-conscious and eco-aware market. And fortunately, the trend doesn't appear to be fading soon, with experts predicting double-digit growth rates in the coming years for refurbished electronics and used clothing.
A Hive of Activity - But Rebuy Stands Tall
As the market buzzes with activity, private trading platforms, and powerhouse e-commerce giants, Rebuy, a Berlin-based provider of used electronics, remains unfazed. The pioneer in the business, founded in 2000, boasts a robust portfolio of earnest services that assure the quality of its products, from checking and cleaning to data wiping and refurbishing. Originally known as trade-a-game, it transformed into Rebuy Recommerce GmbH in 2009, broadening its product range.
In 2018, Swiss financier Evoco invested 21 million euros, becoming the majority owner of Rebuy, and the company broke into profit for the first time in 2019. This year, prospects appear promising, with revenues projected to go beyond 220 million euros according to CEO Philipp Gattner. A reassuring growth spurt after a single-digit increase last year puts Rebuy at a comfortable advantage compared to competitors like Back Market and Refurbed, who boast impressive figures in their respective domains.
Quality over Quantity - The Secret Sauce for Success
What sets Rebuy apart is its precise handling of products - near to 10 million items in 2023 - which Gattner sees as a daunting entry barrier for potential competitors. Years of building logistics and know-how back the business model, making it difficult for newcomers to replicate Rebuy's unique tactics.
For the next 12 to 24 months, Gattner has confirmed the strategic focus will be on the core business in Germany. Despite its presence in several European countries, a substantial chunk of the turnover comes from Germany, underscoring the immense potential for growth in the existing market.
Future Expansion - Beyond the Horizon
While the immediate target remains solidifying its foothold in the German market, Rebuy also has its sights set on international opportunities. Scandinavia, with its high regard for sustainability and reuse, is a region of particular interest. Moreover, looking at the medium term, expansion into product categories such as household appliances - including the popular Thermomix - is under consideration. The move would align Rebuy with its competitors Back Market and Refurbed, who already offer these products.
Mergers and Acquisitions - The Art of Survival
When asked about consolidation in the market, Gattner acknowledges the importance of having options. Acquiring smaller competitors or being acquired by strategic partners with potential synergies could be part of Rebuy's future, depending on the beneficial relationship.
Lighting the Way in the Refurbished Electronics Market:
The market for used electronics, particularly for retailers like Rebuy, is experiencing a wave of trends, driven by factors such as cost-effectiveness, environmental sustainability, and technological advancements:
- The Rapidly Expanding Refurbished Electronics Market: The global refurbished electronics market is projected to reach USD 262.19 billion by 2032, exhibiting a CAGR of 13.2%[3], driven by consumers' demand for cost savings and reduced environmental impact.
- Energy Efficiency and Smart Home Technologies: With rising energy costs worldwide, there is an increasing demand for smart home solutions focused on energy management, enhancing the appeal of refurbished devices[2].
- Technological Advancements: The integration of edge AI in consumer electronics, next-generation displays, and more can influence consumer preferences for both new and used electronics.
Competition in the used electronics market is high. Retailers need to focus on product quality, competitive pricing, customer service, and sustainable practices to stay competitive in this dynamic market, while leveraging technology to improve their processes and offerings.
- Rebuy, with its extensive collection of nearly 10 million products in 2023, is a leader in the thriving second-hand market for lifestyle items, such as smartphones and gadgets, home-and-garden appliances, and technology devices.
- The unique selling point of Rebuy is its emphasis on quality, which has been built over years of logistics and know-how, making it challenging for competitors to replicate its success.
- Despite its focus on the German market, Rebuy also plans to expand into international markets, particularly Scandinavia, and consider product categories beyond electronics, such as home appliances like the popular Thermomix, following the footsteps of competitors like Back Market and Refurbed.
