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The rise in the refurbished equipment market

The rise in the refurbished equipment market

Summary

Interview with Laurent Lamoureux

SIRRMIET: addressing the challenges of refurbishing
Reasons for the rise in refurbishing

The refurbished equipment market has grown significantly in recent years, due to a number of factors
Purchasing habits of public and private organizations

In the private sector, 44% of companies use refurbished equipment, particularly in the digital industry
How to help overcome these reservations

To overcome these reservations, certain measures need to be implemented: (list not exhaustive)
Econocom’s partners

EcoFactory handles around 50% of end-of-lease equipment in France. Econocom’s other partners (such as Ateliers Sans Frontières) are sheltered workshops and companies specializing in vocational integration.

Interview with Laurent Lamoureux

One’s perspective...

Laurent Lamoureux

President of the SIRRMIET trade union

A professional union for refurbishers and distributors of second-hand products

I took over as President of the SIRRMIET in June 2023 after spending 6 years as Vice-President. The organization is mainly in charge of promoting refurbishing, defending the interests of the industry and encouraging more sustainable behaviour in the electronic industry.
I became President because I’m committed to shifting to a more ecological model, maintaining high quality standards and weighing in on and anticipating regulations, most of which are set by the European union.

The SIRRMIET trade union

What is it? 

Le SIRRMIET est un syndicat professionnel qui rassemble les reconditionneurs et distributeurs de seconde main pour les produits électroniques en France. Ses missions principales sont de promouvoir le reconditionnement, de défendre les intérêts des professionnels du secteur, et d’encourager des pratiques plus durables dans l’industrie électronique.

Key figures

40

Member companies

7,500

Direct employees

1 billion

Annual revue from refurbishing 

>10 million

products refurbished a year 

SIRRMIET’s priorities

Harmonizing standards via our Quality Commission

The SIRRMIET aims to promote common standards to increase consumer confidence in refurbished equipment. More specifically, we’re working as part of the DGE (the company department of the French Finance Ministry), the ADEME (a French government agency in charge of the environment and energy transition) and the INR (the Institute for Responsible Digital) to establish a common quality label for French refurbished products.

Regulatory support via our Commission for Public Affairs

We’re working on implementing circular VAT for refurbished products in order to reduce distortion of competition. We’re also trying to get the specific characteristics of refurbished products recognized in European directives so that they’re not classed as manufacturers of new products, with the associated obligations and taxes. From Econocom’s perspective, this change would enable us to keep one step ahead of any regulatory changes, gain insights into the market and better safeguard the interests of our industry.

Reasons for the rise in refurbishing

Environmental awareness

Growing concerns about the carbon footprint of the production and consumption of electronicproducts have prompted consumers to opt for more sustainable alternatives. Refurbishing is a way of extending the lifespan of devices and reducing electronic waste, which appeals to a number of people, particularly the younger generation.

Attractive pricing

Refurbished devices cost considerably less than new ones, which explains their popularity, especially with individual consumers looking for affordable quality products. This trend has also spread to companies over the past few years, particularly small and mid-sized firms where pricing is a key factor in procurement decisions.

Improved quality

Refurbishing companies have become more structured and professional, with warranties, strict quality control and after-sales services. All this has improved consumer confidence in the second-hand market, which is increasingly being seen as a viable alternative to new equipment. The last few years have seen the emergence of a number of labels andcertifications for the quality of refurbished products, refurbishing processes, traceability and provenance of products. 

Support from public policy

In the majority of EU countries, policies promoting refurbished products, such as a reduction in VAT and measures supporting the circular economy, have benefited the market. France is currently the European leader in terms of public policy on using refurbished products. In theprivate sector, the use of refurbished products is one of the key elements of extra-financial reports. In the public sector, meanwhile, 20% of orders have to be for refurbished equipment. Version 2 of this decree has already been published and the percentage will increase to 25 in2027 and 30 in 2030. The shift towards refurbished equipment is therefore well underway.

Increasing demand for electronic products

With the rise in popularity and demand for new technologies, more and more consumers are looking for affordable, sustainable solutions. Refurbishing is a way to satisfy this demand at reasonable cost. The refurbishing market was initially driven by smartphones, but it’s nowopening up to include other types of products, such as tablets, laptops, monitors and printers. 

 

Purchasing habits of public and private organizations

The annual SIRRMIET – INR – KEEEP survey, the number one source of insights into refurbished equipment purchasing habits in public- and private-sector organizations, revealed some notable differences: in the private sector, 44% of companies use refurbished equipment, particularly in the digital industry. Sourcing refurbishing equipment is seen as an opportunity to improve the companies’ brand image and meet CSR targets. 

Reasons for scepticism about refurbished products

Lack of awareness or trust

Many companies simply don’t know enough about the refurbished equipment market. Othersdon’t trust the warranties provided by refurbishers and prefer to buy new equipment so they can benefit from longer warranties and a direct after-sales service.

Concerns over reliability

Some companies are concerned about performance and reliability, particularly regarding outages and malfunctions in the long term.

A complex procurement process

Some organizations have complex, centralized procurement processes and refurbished products might not comply with certain company rules with respect to supplier contracts, procurement and asset management.

A limited offer

Some companies have very specific needs in terms of technology, performance and volumewhich can’t always be met by the refurbished market, particularly where recent or specialistequipment is concerned.

How to help overcome these reservations

Focus on quality and warranties

Suppliers of refurbished equipment must keep improving the perceived quality of their products by providing strong warranties, effective after-sales services and quality labels. 

Awareness and information

To ensure widespread adoption, companies need to be informed of the economic and ecological advantages of refurbished equipment through awareness campaigns, case studies and testimonials from companies that have successfully adopted refurbished solutions.

Inclusion in responsible procurement policies

Companies need to incorporate refurbished equipment into their responsible purchasing policy. By promoting the sustainable aspect of refurbishing, they could align it with their CSR requirements.

Building partnerships

Refurbished equipment suppliers should form close partnerships with companies to offer bespoke services (maintenance, upgrades) and address the specific needs of large organizations.

Econocom’s partners

A responsible, inclusive partnership

EcoFactory currently handles around 50% of end-of-lease equipment in France. Econocom’s other partners (such as Ateliers Sans Frontières) are sheltered workshops and companies specializing in vocational integration. They help people who have difficulty entering the job market by providing training and employment in a number of sectors, including refurbishing.

This initiative has a number of social, ecological and economic benefits

Social impact

Thanks to this partnership, a significant number of people who were marginalized from the job market have found work or received training, ensuring long-term employability: we’ve helped over 100 people return to work via our partnership with ASF.

Improved sustainability thanks to a circular economy approach

Through this initiative, substantial volumes of equipment have been refurbished, thus extending their useful life and reducing their carbon footprint.

Improving the value chain of repurposing

By combining EcoFactory’s refurbishing capabilities with the expertise of our partners ESS, we’ve enhanced our refurbishing ability and skills, introduced a more sustainable approach into the group and consolidated our image as a responsible company.

This initiative is a prime example of a successful combination of economic performance and social impact.

Digital responsibility reconditionnement Solidarity
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