This is how the business of refurbished mobiles works

Until relatively recently, changing mobile phones meant leaving the old terminal in a drawer at home to go to the store to buy a completely new one. But environmental awareness, and also the pocket, have been great allies to gradually change the way in which technology is bought and disposed of at home.

"Only two years ago we calculated that one in ten devices sold in Spain were refurbished products. Now it accounts for 20% of technology sales, especially in mobile devices, so the market has doubled, making it clear that there is no "It's a trend. In the car sector, 70% of those sold are second-hand. Why not reach these figures in the smartphone market? I think it's feasible", explains Nathanaël Berbessou, CEO of Back Market in Spain.

As the OCU defined two months ago in a report on refurbished devices, a product of this type is one that has been prepared to function correctly again. It is about technological equipment that has had a first life and that after a review process, and change of some parts if necessary, is put up for sale again at a lower price than when it was done for the first time.

In fact, for the moment, the price is the main attraction for which Spanish buyers are opting in recent months for the acquisition of reconditioned. "They are items that can cost up to 50% less than the same new product, so this is the first incentive for their acquisition. But there are also more and more users who do it out of an ecological mentality, since buying these terminals means avoiding manufacture a new one, and we know that 90% of the carbon footprint occurs during the production of the devices, so we would be doing the planet a favor," adds the Back Market executive.

Specifically, Back Market, one of the fastest growing refurbished sales platforms in Spain and Europe, works as a marketplace for companies that recondition technological products. "We work with more than 1,000 refurbished companies such as SmartLabs, which are companies that repair or check that the equipment works well and connect to Back Market to sell it. We are only the intermediary," he adds.

SmartLabs is a network of technology device repair labs, the ones truly responsible for ensuring that equipment sold as refurbished works properly. Hundreds of equipment (from mobile phones and computers to scooters...) pass through their centers and through the hands of their technicians, some to repair and others to recondition. "Due to the current situation, with the lack of components and the economic recession, the client is turning to second-hand terminals more and more. We have an equipment repurchase service and we take care of reviewing and checking that they work correctly, and If they need any kind of maintenance, we do it for them", explains Vicente Hernanz, CEO and founder of Smartlabs.

The refurbished terminals that arrive at these laboratories come from the purchases that the company makes from end customers, operators or wholesalers, both within Spain and abroad, and then put them up for sale on platforms such as Back Market.

In fact, the role of these companies is fundamental, since they are the ones that have to be responsible for the guarantee with which the reconditioned ones are sold. In the case of Back Market it is two years, but the minimum offered on other platforms is twelve months.

Two days ago, PcComponentes announced a new device brand, Replay. But after this banner, what the Murcia-based company is doing is continuing to increase its commitment to second-hand terminals, since it is the brand behind which its reconditioned division is hiding. "These teams have been reviewed by PcComponentes experts and are sold with a three-year warranty," they explain from the brand. But the Spanish firm is not the only one to offer refurbished models. MediaMarkt, Fnac, Worten or even El Corte Inglés and Carrefour have decided to join this trend to offer second-hand equipment in perfect condition and with a guarantee.

In the case of MediaMarkt, the company launched the NewLife project in 2019 to give technology a second chance and contribute to the circular economy model. "During these years, more and more products and categories have been added, and now customers can find it in any of the 110 company stores, as well as in the online store. These products have the same guarantees as any other product. new purchased at MediaMarkt and have also been refurbished and certified by expert technicians from the company's hub in the Madrid town of Pinto," they say.

For their part, users who visit Fnac stores can locate some equipment under the name of Fnac 2º Vida. "These are products that have been refurbished by the official technical service of each of the brands. Our experts from the Fnac clinic make sure that these products meet our quality requirements and are only made available to our customers at this time," he confirms. Sara Vega, Director of Marketing and Communication at Fnac Spain. The directive ensures that the increase in sales of this type of equipment is considerable and growth is expected to be even more pronounced in the coming years.

Worten, for its part, has a marketplace where the vendors themselves make reconditioned technology available to customers. "In this case, the management of the process corresponds to the Sellers, always complying with the standards of service and guarantees established by our company." In addition, the company has a Buy-back Service that allows our clients to obtain income for their old equipment to purchase their new devices.