Chatting with Philipp Gattner: The Man at the Helm of Rebuy – a Leading Player in the Booming Secondhand Market
Rebuy's Strong Foothold in a Blooming Secondhand Market Amidst Soaring Competition
"Secondhand market gains growing popularity"
Berlin-born online marketplace, Rebuy, purchases, refurbishes, and peddles used electronics such as smartphones and tablets. The surge of secondhand goods has granted Rebuy double-digit growth rates in recent years, albeit at a relatively slower pace recently. However, CEO, Philipp Gattner, remains undaunted, asserting that the company has a firm grip on the competition.
By Karolin Rothbart, Frankfurt
Under this year's Christmas trees, millions of secondhand presents were doubtless waiting for their new owners, as per a survey by the German Retail Federation. The proportion of those who have traded something used in Germany has hiked from 51% to 54% this year. Items such as household goods, decorations, accessories, electronics, and clothing are the most popular secondhand gifts.
The rationale behind this trend is clear: used items are both wallet-friendly and environmentally-friendly, which has led to a surging acceptance of secondhand merchandise among consumers in the face of rising living costs and heightened environmental concern. Market analysts project double-digit growth rates globally in the coming years for both used and refurbished electronics and clothing.
Back Market and Vinted
The market has adapted to the boom, giving rise to a plethora of online platforms where private individuals can exchange used goods directly with one another or through an intermediary. Some of these platforms have raked in billions in valuation, like French Back Market, a marketplace for refurbished electronics, or Lithuanian Vinted, a marketplace for used fashion and accessories that plans to extend into electronics. Both platforms scored valuations of roughly 5 billion euros in their most recent funding rounds. Major e-commerce titans and retailers like Saturn, Amazon, eBay, H&M, Zalando, and Zara have also hopped onto the used merchandise wagon.
Philipp Gattner, CEO of Rebuy – a Berlin-based provider of used and refurbished electronics, and secondhand media like books, films, and video games – does not seem overly concerned about the mounting competition in the market. "Of course, we see the emergence of new entrants in the market, including traditional companies like MediaMarkt," he says. "That's to be expected and doesn't automatically signal competitive displacement. It's simply because the market is becoming increasingly appealing."
Already in the black
Among the myriad purveyors of secondhand electronics, Rebuy is almost a veteran. The company was established twenty years ago, originally under the moniker trade-a-game and with an initial focus on used video games. In 2009, the company was rechristened Rebuy Recommerce GmbH and expanded its product range. The last funding round took place in March 2018, when Swiss financial investor, Evoco, plunked down 21 million euros and became the majority owner of Rebuy. In 2019, the Berlin-based company reported its first profit.
The CEO aims to pen black figures again this year, both operationally and on the balance sheet, according to Gattner. Compared to the previous year, the company predicts a favorable development, with revenue projected to surpass 220 million euros, up from 216 million euros last year. "However, we are also a bit spoiled by the past years, where we have always grown double-digit on average."
Last year, Rebuy experienced a single-digit rise. In contrast, its 2014 competitor, Back Market, reported a 45% increase in revenue to 320 million euros in the same period. Refurbed, a Vienna-based provider of refurbished electronic devices, reported an external turnover of over 1 billion euros in June 2023. Five months later, the startup founded in 2017 raised 54 million euros in a funding round.
Gattner maintains that Rebuy remains well-positioned in the current competitive landscape due to its commitment to catering to consumers' demands for quality. The service includes testing, cleaning, data deletion, and refurbishment of used devices, as well as a three-year warranty. "We actually handle the products, with nearly 10 million products in 2023, which presents a substantial barrier to entry for potential competitors," says the CEO. Developing the logistics and expertise behind a business model takes years, he points out.
For the next 12 to 24 months, the company plans to focus strategically on its core business in Germany, where it generates the majority of its revenue. Rebuy is also active in Austria, the Netherlands, Spain, Italy, and France. "Given the billion-dollar re-commerce market and our current revenue level, we see immense potential in our existing business and believe it makes little sense to expand into new categories or countries too early," says Gattner.
Looking ahead 18 to 24 months, the company is also considering internationalization. A region of particular interest for re-commerce, or online trading of second-hand items, is Scandinavia, where society tends to view the purchase of used products positively. This trend is also observed among younger generations in Germany.
In the medium term, the company also plans to extend into new product categories. "We're considering household appliances, for example, with the Thermomix being a classic example that fits well into our range," says Gattner. This would place Rebuy on par with its competitors Back Market and Refurbed, which already offer household appliances such as the Thermomix.
Asked about potential consolidation movements in the market, Gattner states that it's crucial for Rebuy to have options. The company could consider active acquisitions and is currently examining potential, mostly smaller targets. However, if there are large strategic players with potential synergies with Rebuy, that could also be an option.
Enrichment Data:
Competitive Advantages
- Automated Resale Pricing: Rebuy, like many recommerce platforms, employs resale pricing tools that adjust prices based on product condition, demand trends, and historical sales data, ensuring profitability and competitiveness.
- Inventory Acquisition and Quality Assurance: By refurbishing electronics, Rebuy extends product lifecycles while assuring quality through testing processes, trade-in programs, and certification, thereby reducing buyer uncertainty.
- Sustainability: Electronics recommerce directly addresses e-waste concerns, a key consumer priority in circular economy models. Retailers like Rebuy garner environmental goodwill through resource conservation and landfill reduction, and brand loyalty from eco-conscious shoppers reinvesting trade-in credits into new purchases.
- Technology-Driven Operations: Competitors using recommerce OS platforms often leverage technology to optimize logistics, merchandising, and customer retention through omnichannel integration, data analytics, and digital workflows for authentication, repair tracking, and compliance.
- "Under the Christmas trees this year, millions of secondhand presents, including used electronics from Rebuy, were likely waiting for their new owners."
- "Rebuy, with its commitment to quality and services such as testing, cleaning, data deletion, and refurbishment, presents a substantial barrier to entry for potential competitors in the used electronics market."
- "Market consolidation could be an option for Rebuy in the future, as they consider actively acquiring smaller targets or partnering with strategic players for potential synergies."
- "In the coming years, the global market for both used and refurbished electronics and clothing is projected to continue its double-digit growth, following the increasing acceptance and popularity of secondhand merchandise among consumers."
