CEO transition at Back Market

Thibaud Hug de Larauze, the founder of Back Market, stepped down as CEO on September 1, last year, passing operational responsibility to Clement Petit, who had been with the company for six years. Hug de Larauze, however, remained engaged and recently participated in a major company event.

Event likened to a TV show

Hug de Larauze spoke at the Slow Tech Summit of Back Market in Paris on October 15. The event, which included a press and influencer session, was compared to an episode from the series Emily in Paris. During the summit, he discussed the company's growth, the rise of the refurbished electronics sector, and even mentioned the 2027 French presidential election.

Back Market's origins and mission

Back Market, founded in 2014, now serves over 18 million customers across 17 countries and works with 1,800 partners to refurbish electronic devices. Hug de Larauze explained that the company was created to address a market where consumers had few options other than buying new or purchasing second-hand without guarantees. The company offers refurbished products at lower prices with guarantees, aiming to change consumer behavior.

Growth and strategic shift

Hug de Larauze noted that Back Market has experienced double-digit growth while the new electronics market has declined, showing that the company is taking market share from new products. He emphasized that the company's mission remains the same, but the methods have evolved as the company has grown and built a strong team. He said he could no longer manage daily operations while also focusing on long-term innovations, leading to his decision to step back from operational management.

Future goals for the refurbished sector

Hug de Larauze aims for the refurbished sector to become the norm, targeting 5 billion consumers by 2034. He acknowledged that while progress has been made, structural barriers remain, such as consumer habits of keeping devices unused or continuing to buy new out of habit. He stressed the need to expand the model beyond smartphones into other product categories.

Expanding partnerships and product range

Back Market's partnership with PlayStation has grown significantly, moving from the United States to Europe and the United Kingdom. The collaboration allows customers to resell older consoles. Similar partnerships are being explored with other manufacturers, and the company works with brands like Dyson and Thermomix, which are increasing their presence on Back Market by buying back, refurbishing, and reselling used devices.

Refurbished products in the luxury industry

Hug de Larauze pointed out that the rise of refurbished products is also evident in the luxury industry, where high prices eventually lead to declining sales. He noted that users now keep smartphones for 3.5 to four years, compared to 18 months to two years in the company's early days.

Market differences between regions

In the United States, Back Market is experiencing strong growth, though American culture remains more focused on new products compared to Europe. However, younger generations, particularly Gen Z, are showing increasing interest in refurbished products. France remains the company's primary market, followed by the United Kingdom.

Political concerns and AI use

Hug de Larauze expressed concern about the potential rise of extreme political movements in France, which he believes can be divisive and create a deficit of trust. However, he emphasized that Back Market's focus remains on creating a useful service regardless of the political landscape. He also acknowledged the enthusiasm around artificial intelligence, noting its potential to solve problems more efficiently. He cited the development of the Mine My Phone application, which was accelerated using AI tools.

Future expansion and customer satisfaction

Looking ahead, Hug de Larauze aims to continue expanding Back Market's reach, with the long-term goal of exceeding 100 million customers. The company's Express Replacement service, which sends a new device the next day if a product breaks under warranty, has an 80% customer satisfaction rate and is a key growth lever.