TBrandishing an iPhone that he boasts is more than seven years old, Hibault Hug de Larose says, “It works great.” Not what you’d expect from a tech entrepreneur who runs BackMarket, France’s biggest “unicorn” startup, which has raised more than $1 billion and is present in 18 countries.
Positioning himself as an environmental activist rather than a tech guru, the CEO of the second-hand gadget marketplace says he wants to fight to persuade us all to buy second-hand phones, laptops and other gadgets, and to repair or recycle our old stuff.
According to Our World in Data, new technologies are responsible for more than 1 billion tonnes of greenhouse gas emissions per year, just under 3% of the global total, making them the seventh largest emitter (about half the size of the fashion industry).
According to a study by the French environmental transition agency Adem, repairing a smartphone just once can reduce carbon dioxide emissions by more than 77 kg, reducing the impact on the planet, solving a huge e-waste problem equivalent to more than 60 million tonnes per year worldwide, and reducing the need to mine rare metals such as gold, platinum and palladium.
“It’s very motivating to wake up in the morning and know that at the end of the day, you’re going to achieve something positive,” says Hug de Larauz, who says he likes that the company doesn’t compromise on its values. “The more the business grows, the more it’s at its best in terms of impact.”
Headquartered in Paris and Bordeaux, the group employs 700 people worldwide and expects to achieve its first annual underlying profit this year, just after celebrating its 10th anniversary in November. Sales continue to soar, up 45 percent last year to 320 million euros (£270 million), making the company about a quarter the size of British online electronics retailer AO.
The UK, where Backmarket launched four years ago, is now its fastest growing country, with sales up 80% year-on-year. The group controls 44% of the UK’s online refurbished tech market, including more than half of smartphones. Hug de Larauz said the growing interest in the UK was due to: Not only because they’re “fighting inflation and looking for ways to save money on technology,” but also because they’re “very concerned about sustainability. E-waste is a big issue and it’s an important issue for people.”
BackMarket, now a B Corporation certified company that guarantees certain ethical standards, was founded by Hug de Larose and two friends, Quentin Le Bruster and Vianney Vogt, in 2014. De Larose said the launch was inspired by working with home improvement professionals who were selling their wares on sites like eBay.
To build consumer trust, Hug de Larauz felt he needed to raise awareness of refurbished products and make the sales experience smoother: Refurbished products might be cheaper and more environmentally friendly, but they were competing with expensively marketed household brands, and “there was a big trust gap between those two worlds that needed to be bridged,” he said.
BackMarket, which started out selling smartphones only in France, now sells 200 types of refurbished gadgets, from smartphones and laptops to baby monitors and games consoles, in 18 countries, including the US and most of Europe, as well as Japan, South Korea and Australia, and reached 4.5 million new customers last year, bringing its total since launch to more than 13 million.
Backmarket does not acquire or hold inventory, nor does it refurbish itself. It partners with 1,700 traders and refurbishers, who undergo rigorous screening before being allowed to sell. Sellers get their products from a variety of sources, including telecommunication companies that offer trade-ins and upgrades to their customers.
After several rounds of funding last year, including growth injections from Goldman Sachs, Airbnb and Spotify investment firm Aglae Ventures, Backmarket decided to shift its focus to turning a profit and is now self-financed, with rising interest rates and a sluggish IPO market making new funding unlikely.
While a public listing has not been completely ruled out, Hug de Larauz said the group does not need new capital to continue expanding. He believes the group is on track to post a profit in December. The company is cutting jobs and pausing its expansion into new geographies and product areas to make the most of its existing position.
Growth in the bag market is coming from existing markets as well as new services such as trade-in and recycling of certain products in markets such as the UK, France and the US. Currently being tested in France, Hug de Larose says he wants to give ordinary people an easy, potentially profitable way to get rid of unwanted tech, rather than letting it accumulate in a drawer. Buying back and recycling the items also helps create a steady supply for the back market’s army of refurbishers.
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There’s clearly a lot of scope for such services, with Material Focus estimating that each UK household now has around 30 broken tech products, up from 20 four years ago. Further change is being driven by ‘right to repair’ legislation, which will come into force across the EU by 2026 and require manufacturers to provide spare parts and technical information for mobile phones, tablet PCs and kitchen appliances.
In the UK, two million tonnes of e-waste is disposed of every year, and right to repair legislation was introduced in 2021. But this only covers a handful of items, such as large kitchen appliances and televisions.
Hug de Larauz would like to see the law go further: “If we really want to move people towards a circular society, towards repairs and making equipment last longer, we need to involve all stakeholders. It takes a whole village, especially manufacturers, maybe even the design of the products.” [with repair or longevity in mind]We will start selling spare parts and making it easier for people to repair things.”
Further legislation requiring electronics manufacturers and retailers to pay more for the collection and recycling of products they sell would also be welcomed, but BackMarket’s chief says the UK system needs to be adjusted to ensure repair is considered the first option rather than recycling.
“People will be happy to be able to buy these products,” he said. “It should be everyone’s right to repair what they already own and make it last longer.”
resume
Year 36
family He is married and has three daughters.
education After attending a French high school in Canada, he went on to study business at IÉSEG. Grandes Ecoles A resident of France, during his studies he traveled to France, Toronto, Mexico, Spain and India, and took time off to help rebuild schools in Haiti after the 2010 earthquake.
pay Not disclosed.
Last Holiday Gulf of Morbihan, near Vannes, Brittany.
Biggest regret “I have no regrets, except that I never became a professional tennis player.”
The best advice he received “We need to be ambitious, but cautious, and listen to subtle signals.”
Words and phrases he frequently uses “Great, great. But how do we take it to the next level?”
How to Relax Sailing, tennis, living near the ocean and playing on the beach with my daughters.
Source: www.theguardian.com
