In what context has your company’s activity evolved since 2022?
The context is favorable because it serves the circular economy and reuse. The pandemic has shed light on our attitude towards consumption and overconsumption. Moreover, the weight of refurbished in 2021 has risen to 17% market share (VS 14% in 2020) and 1 in 6 phones sold in France has been refurbished. Largo surfs on this trend and benefits from collective environmental awareness, especially among the younger generations. Finally, the anti-waste law obliges public institutions to include 20% of refurbished electronic products in their calls for tenders.
What are your goals with going public in 2021?
The virtues of the grant are raising larger amounts to support the project in the long run. In 2021, we raised 24 million euros. The point is both transparency and our guarantee of quality as a French player in this market in full structuring.
How is the company positioned in its market?
Since 2016, since the launch of Largo, the company has experienced very strong growth as turnover increased from 1.2 million to 6.5 million in 2017, more than 10 million in 2020 and 17.6 million in 2021. € 30 million turnover at the end of 2022. Five players share the market, but Largo is atypical because the company relies on several distribution channels: retail, digital, BtoB (Largo Business’s offer is 9% of turnover in 2020) and telephony operators and affinity insurers (Pacifica, etc.). In addition, the company undertakes not to immobilize the device for more than 72 hours in case of malfunction and complaints online at https://sav.largo.fr/.
What is your distribution network?
Largo is implementing an effective omni-channel strategy around mass distribution, especially with 2000 outlets (64% of traffic in 2021; target of 48% in 2022 for better balance between channels). The brand is distributed physically (at Leclerc, Conforama, Système U, Darty …) but also in the markets (BackMarket, Amazon …) and through its Largo.fr website, launched in September 2021. direct sales account for 25% of Larga’s turnover and relies mainly on short circuits.
What is your e-commerce strategy?
That is very recently since the IPO. All the basics related to UX are studied to facilitate product selection (shopping guides, comparators, etc.). We are creating content around a catalog of products provided in the digital universe and working on our natural referencing before the 2023 marketing investment plan.
What are your plans for 2022?
Develop short-circuit channels (buy in Europe and France, and less in the United States) and increase our production to double activity (rearrange more to supply distribution channels). Largo began to automate part of its production by investing in 6 new generation robots. Goal: significantly increase its recovery capacity (to reach 25,000 refurbished products per month by the end of 2022, compared to 7,000 per month a few months ago). Finally, individuals will be able to sell their devices on the Largo site from the beginning of the school year. U In 2025, we target a turnover of 70 million euros
Key figures on Largo:
EUR 17.6 million turnover in 2021, or + 71% for the year
220,000 renovated smartphones since its creation in 2016
More than 2,000 distribution points