The future of the European secondary mobile market: an interview with Georg Dis, CEO of dis-connect

Regulatory changes and their impact on market growth

When asked about the EU's recent regulations, particularly the Right to Repair Directive and the USB-C standard, Georg Dis sees these as both challenges and opportunities for the secondary mobile market. "These regulations will likely boost the secondary market significantly," he begins. "The Right to Repair, for instance, makes it easier for consumers to extend the lifespan of their devices, which in turn increases the supply of devices available for refurbishment and resale. With more devices available, the secondary market can grow and thrive."

Regarding the USB-C standard, Dis emphasizes that it simplifies the refurbishment process. "The standardization of charging ports reduces the complexity and cost associated with having multiple charger types. This makes it easier to refurbish devices and offer them at more competitive prices. However, the uncertainty surrounding the import of non-USB-C devices from outside the EU presents a challenge. While this may not be strictly enforced at first, it could create an imbalance in the cost structure for these devices."

The key takeaway, according to Dis, is that these regulatory changes could foster a stronger and more sustainable secondary market by reducing barriers to repair and refurbishment while simplifying the process of reselling used devices.

Sustainability and circular economy goals driving consumer preferences

Sustainability is a growing concern for consumers, and the secondary market offers an environmentally friendly alternative to purchasing new devices. "Consumers are increasingly aware of the environmental impact of their purchasing habits," Dis notes. "The secondary market offers a more sustainable option because it reduces e-waste and minimizes the need for new manufacturing."

He believes that consumer demand for refurbished goods will continue to rise, especially as more consumers prioritize sustainability. "We expect that consumers will increasingly favor companies that have clear, sustainable practices in place. This could include minimizing waste, using renewable energy, or offering eco-labeling or certifications that highlight the environmental benefits of buying refurbished."

This growing interest in sustainable practices also aligns with the overall shift toward a circular economy in Europe. By focusing on the longevity of devices through refurbishment and repair, companies in the secondary market are helping to create a more sustainable future for consumer electronics.

Expansion beyond smartphones: new opportunities in the secondary market

As the secondary mobile market grows, other segments are expected to see significant developments in the coming years. Dis mentions several sectors that are likely to expand by 2025. "Laptops and tablets are becoming increasingly popular in the secondary market, following the same trends seen with smartphones. Consumers are realizing the value of refurbished devices not only in mobile phones but also in other high-cost items like laptops."

He also sees opportunities in the secondary market for home appliances, such as washing machines and refrigerators. "These items tend to have long lifespans, and replacing them is expensive. The secondary market provides a more affordable alternative that still offers quality and reliability."

Dis also points to the growing popularity of gaming consoles and wearables, such as smartwatches and fitness trackers, as another area for growth. "These devices have a good resale value, and with frequent upgrades in the gaming industry, the secondary market for older models is thriving."

Technology advancements enhancing the quality of used and refurbished goods

Technology plays a vital role in improving the quality of refurbished devices. According to Dis, advancements in AI and automation are key to enhancing the efficiency and reliability of the refurbishment process. "AI-powered grading systems allow for more accurate and consistent assessments of device condition, which builds consumer confidence in the quality of refurbished goods."

Dis also points to automated refurbishment processes as a significant development. "By automating the refurbishment process, we can reduce human error and improve the overall efficiency, which leads to higher-quality products."

While technology improves the quality of refurbished devices, Dis highlights the need for standardization in the industry. "One of the challenges we face in the secondary market is the lack of standardized quality benchmarks for refurbished goods. This makes it difficult for consumers to compare products and make informed decisions. A certification center that establishes clear standards would help create transparency and build consumer trust."

The role of specialized marketplaces in consumer confidence

Specialized marketplaces like Back Market are playing a critical role in building consumer trust and expanding the reach of the secondary market. Dis notes that these platforms provide several advantages. "Dedicated platforms increase consumer confidence by offering a sense of security and legitimacy. They also aggregate inventory from various refurbishers, offering consumers a wider selection of refurbished devices."

Furthermore, these marketplaces are improving customer service, offering streamlined return policies and warranties, which build trust. However, Dis also acknowledges the potential drawbacks. "While specialized marketplaces have contributed to the growth of the secondary market, they have also led to increased competition and higher prices. This could eventually create a monopoly situation, which would undermine the competitive nature of the market."

Economic factors and their influence on the secondary market

Economic uncertainty, such as inflation and cost-of-living crises, can have a significant impact on the secondary market. Dis believes that during economic downturns, consumers will increasingly turn to secondary markets for affordable options. "The cost savings associated with buying refurbished devices will become even more attractive when consumers face financial pressure. Even consumers who previously preferred new products may shift toward purchasing used or refurbished goods."

He continues, "The value proposition for refurbished devices becomes even stronger when consumers prioritize value for money. Refurbished goods offer significant cost savings without sacrificing quality, making them a viable alternative for those seeking affordable solutions."

How major brands and manufacturers will adapt

As the secondary market continues to grow, Dis expects that major brands, manufacturers, and telecom operators will adapt by embracing the market rather than trying to suppress it. "OEMs, like Apple, have already demonstrated how to dominate the secondary market by offering certified pre-owned programs and trade-in initiatives. Other brands will follow suit, offering their own refurbished devices with warranties to capture market share."

Dis sees this as an opportunity for collaboration rather than competition. "OEMs will need to partner with refurbishers to ensure that their products are properly refurbished and re-sold. This collaboration will ensure the quality and reliability of refurbished goods, which will build consumer trust."

Public awareness and education: a key to growth

For the secondary market to continue to grow, educating consumers is crucial. Dis argues that public awareness campaigns are essential for overcoming the stigma associated with buying refurbished products. "Consumers need to understand the financial benefits of buying refurbished, as well as the positive environmental impact. Education campaigns that highlight these benefits will attract a wider audience."

He also points out that educating consumers about the refurbishment process and the warranties offered with refurbished devices will help build trust. "Addressing quality concerns head-on will be key to ensuring that consumers feel confident in purchasing refurbished goods."

The impact of logistics advancements

Advancements in logistics, particularly greener transportation options and localized supply chains, will have a significant impact on the secondary market. Dis explains, "Greener transportation options, like electric vehicles, will help reduce the carbon footprint of the secondary market. Localized supply chains will also help reduce transportation times and costs, which can be passed on to consumers in the form of lower prices."

He also emphasizes the importance of considering the entire supply chain, including the movement of spare parts for refurbishment. "To fully understand the environmental impact of second-life devices, we need to consider the logistics of spare parts as well. Optimizing the entire supply chain will help reduce the carbon footprint of refurbished devices."

Regulations and adoption across EU member states

While the EU provides a regularly framework for the secondary market, Dis acknowledges that individual member states may have varying approaches to adoption and regulation. "Some countries may have more established cultures of buying refurbished goods, while others may face challenges in terms of consumer awareness or regulatory barriers."

Dis also notes that economic factors in each country will influence demand for secondary market goods. "Countries facing economic challenges may see increased demand for affordable refurbished devices, while those with higher disposable incomes may see slower growth in the market."

Conclusion: a promising future for the European secondary market

The European secondary mobile market is set for significant growth in the coming years, driven by regulatory changes, technological advancements, and shifting consumer preferences. Georg Dis remains optimistic about the future of the industry, believing that the adoption of sustainable practices and the rise of specialized marketplaces will continue to shape the market. As consumer awareness and demand for refurbished products increase, the secondary market will play a critical role in promoting a more sustainable and circular economy in Europe.