The evolution of the second-hand market according to grades

The used car market in France has experienced several fluctuations during its evolution and development.  

Phase 1 : 2000 - 2010 : used grades 

The first half of the 2000s saw the emergence of brands specializing in buying and selling in France. These are: Cash Converters, Easy Cash or Cash Express. 

The arrival of Ebay in France, a website for auctions and second-hand products in 2000 and LeBonCoin in 2006, the first second-hand buying and selling platform, position second-hand buying as a credible alternative to new.

Why ?

Thanks to the commercial warranty of 6 months minimum, offered by the brands. 

In 2007, the first iPhone was launched. The arrival on the market of new technologies and the first smartphone attracts millions of spectators and boosts the second-hand market

Then every year, in September, the Apple keynote brings together an exponential interest in older models by high-tech enthusiasts fond of lower prices. 

The arrival of Free in 2009 will also accelerate the demand for smartphones not subsidized by the operator and therefore potentially used. 

And the reconditioned grades  ? 

It is still unclear between the terms reconditioned, refurbished, second hand or occasion.

The term reconditioned has not yet emerged, since consumers are still talking about opportunity in France.

Phase 2 : 2010 - 2020 : attempts to "refurbish"

The decade 2010 is marked by an economic necessity.

Consumers are primarily looking for a purchase with good value for money.

The actors of the second hand have understood this demand and the term "reconditioned" is gradually imposed: that is to say when the product passes through a specialist workshop to be erased, sorted, tested, renovated and cleaned according to strict specifications.

Operator recovery programs are deployed to retain customers. In France, operators have become a major source of the market.  

Some market players such as Remade, are trying to create a Grade 0 in an industrial way to meet the demand of mass distribution and insurance that have arrived on the market.

This model has its limits. 

The fact of "rebuilding" devices with new compatible parts, requires a considerable investment that is little valued during distribution. 

Similarly, during the complete refurbishment process, the shell and logos that are re-engraved, can raise intellectual property issues with manufacturers.

Phase 3: 2020: the reconditioned assumed 

Second-hand market players have understood that demand has changed and consumers are no longer so demanding on appearance. There is now an ecological factor.

Affinity insurers that were the strictest, are relaxing their sourcing and open to grades B and C depending on the programs. This is an important marker of market reality.

Products already used with wear marks, no longer frighten and are legitimate in the eyes of customers, given the greatly reduced price. Smartphones can be certified, tested, repaired and put back on the market with small visible scratches.

Grades B to B are concentrated around three variations: A, B, C. Their equivalence in B to C: like new, very good condition, correct condition.

Some platforms have created additional grades to distinguish themselves but the differences are not understandable to the consumer. 

Why such a reversal ?

The reconditioned market is at the crossroads between ecology and economy. Consumers are fond of responsible actions and accept all changes in the interest of the planet.

This growth is also due to the increase in the number of players who support it :

• public procurement in reconditioned will wait 20%
• all mobile operators distributing reconditioned next to the new
  
  

• Marketplace specialists in reconditioning : Back Market, Refurbed, Reebelo, Amazon Renewed

• lessors/integrators specialized in reconditioning as mobile club or fleet 

• the corners of the large distribution dedicated to the second hand : Leclerc occasion, Carrefour occasion

Most recently, the range of refurbished high-tech products, Free Flex, illustrates a new impetus of this pioneering operator in the uses of the smartphone.

• public procurement in reconditioned will wait 20%

• all mobile operators distributing reconditioned next to the new

• Marketplace specialists in reconditioning: Back Market, Refurbed, Reebelo, Amazon Renewed

• rental companies/integrators specialized in reconditioning as mobile club or fleet 

• retail corners dedicated to second hand: Leclerc occasion, Carrefour occasion

The reconditioned market has evolved over time and its customers. To meet growing and responsible demand, second-life actors have adapted to meet the needs of consumers.

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