Back Market and the Global E-Waste Crisis
| Case Code: CSRS015 Case Length: 18 Pages Period: 2014-2022 Pub Date: 2023 Teaching Note: Available |
Price: Rs.600 Organization: Back Market Industry: Technology & Communications, Manufacturing Countries: World/global Themes: Business Ethics, Corporate Responsibility ,Sustainability,Business Ethics |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
E-Waste Crisis and Circular Economy in Tech
Over the years, electronic devices had become an important part of the daily lives of human beings, bringing new convenience and capabilities. But this came at a high environmental cost. From the natural resources and energy consumed in creating them to how quickly and irresponsibly tech devices were disposed, electronic consumption habits were not sustainable and took a toll on the environment. The e-waste crisis was the fastest growing and one of the most toxic forms of waste in the world. According to the World Economic Forum report, about 50 million tons of e-waste were generated annually, polluting drinking water and harming ecosystems globally. Africa-based supply chains for cobalt and rare earth metals used in components of smartphones were riddled with human rights violations and child labor..
Business Model
Back Market was one of the pioneers in bringing refurbished gadgets to a wider consumer market. It tackled the problem of e-waste by giving expertly restored devices a second life. Rather than refurbishing devices directly, Back Market worked with independent vendors who acted as the sourcing partners for..
Customer Service
In addition to quality control, customer experience was also at the forefront of Back Market’s strategy, with a commitment to take e-commerce best practices a step further, offering a streamlined shopping experience, and free standard shipping with every item. Each purchase came with a 30-day return policy and a minimum warranty of one year on all products on its site, a virtually unheard-of perk in the refurbishing world..
Marketing Campaigns
To make consumers more aware of their choices, Back Market invested heavily in branding and marketing campaigns. Through targeted campaigns, it educated buyers that new was not the only way to go and about the environmental implications of e-waste. The company spent heavily on advertising, with outdoor posters and ads on TV to give refurbished products a more attractive image..
A Global Marketplace
Since its founding, the French startup continually ramped up its expansion efforts into global markets. Back Market scaled pretty quickly across several European countries. Its gross sales grew from US$4 million in 2015 to US$120 million in 2017..
Results
Since 2014, through the sale of refurbished smartphones, Back Market prevented the emission of 580,144,582.08 kg of CO2, the use of 1,878,480,190 kg of raw materials, the consumption of 498,015,680,400 liters of water, and the production of 1,274,162.93 kg of electronic waste. In 2019, the generation of nearly 450 tons of e-waste was prevented through the Back Market platform..
Challenges Ahead
Going forward, one of the biggest challenges for Back Market would be to convince customers to switch from new to refurbished and to overcome the negative stigmas associated with used electronics goods. Consumers, particularly those in the US, did not favor buying pre-owned phones and considered buying refurbished devices a risky option. According to a poll conducted by..
Exhibits
Exhibit I: Global E-Waste Generated (Year Wise)
Exhibit II: E-Waste Recycling Rate (2010-2019)
Exhibit III: Global Smartphone Shipments (2010 to 2021)
Exhibit IV: Back Market Seller Types
Exhibit V: Back Market Product Catalogue*
Exhibit VI: Back Market’s Growth
Exhibit VII: Back Market Sales
Exhibit VII: Refurbished and Used Mobile Phones Market Share (%)
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