In a world where sustainability is more than a buzzword and the quest for greener practices shapes industries, Antoine Jouteau, CEO of Adevinta, stands at the forefront of a quiet revolution. In this exclusive interview, Jouteau delves into the transformative potential of the circular economy, a paradigm shift promising to reshape our approach to consumption and offer both environmental and economic benefits for consumers and businesses alike.
Thank you for joining us today, Mr. Jouteau. Can you explain what the circular economy is and how it differs from the traditional linear economy?
The circular economy is an economic system designed to phase out waste, where every item is appreciated for its intrinsic value and is used to serve its purpose indefinitely. In practice this means recycling, reusing and repairing goods, in a major departure from “throw away” culture.
In contrast, the traditional linear economy is structured in such a way that many items are produced to be only single-use with a short lifespan — people buy a product, use it, and then dispose of it when they’re finished. Ultimately, this model of production and consumption is unsustainable for both people and the planet in the long-term.
This is why it’s so important that businesses begin taking the steps necessary to transition to a circular economy. Enabling re-commerce as a means of consumption is pivotal to this, as buying and selling this way can significantly extend the life cycle of a product. At Adevinta, we believe passionately in the ethos of ‘reduce, reuse, upcycle and recycle’ that underpins the circular economy, and our online marketplaces aim to help drive this.
How do you see re-commerce fitting into the broader goals of the circular economy?
The goals of re-commerce and the circular economy are intrinsically linked, and circular consumption can only be achieved by implementing re-commerce at scale.
By shopping second-hand we extend a product’s lifespan, reduce waste, and practise more sustainable consumption. This way of thinking informs the circular economy itself, where the goal is to maximise the value of our resources and consequently reduce environmental impact.
It can all sound daunting, but it only takes small steps to make a big difference. If we can get people engaging in the buying and selling of pre-loved items, they will be participating in the re-commerce market, and thus contributing to a more circular economy.
And it’s already happening. According to data from leboncoin, one of Adevinta’s marketplaces, nearly 20 million French consumers bought or sold an item on the platform in 2022. We’re seeing the beginning of a seismic behavioural shift towards second hand, and corporates, governments and individuals will all have a role to play in making sure it continues. Incentivisation and improving convenience will be key.
Can you discuss the environmental and economic benefits of re-commerce for both consumers and businesses?
For consumers, the continuing high cost of living and the desire to live more sustainable lives are arguably the two biggest factors driving the rise in second-hand shopping. In fact, recent research from Adevinta found that 47% of consumers report that the cost-of-living crisis has encouraged them to buy second-hand to save money, and 37% are driven to do so by a desire to live more sustainably.
The cost-saving and environmental benefits of re-commerce are already well understood by most consumers – and for those in need of convincing, there’s plenty of data to stand testament. Shopping on Adevinta’s marketplaces alone saved a potential 25.3 million tonnes of CO2 emissions in 2022.
For businesses, engaging with re-commerce offers them the opportunity to meet rising expectations from both consumers and policy makers. With new regulations such as the EU’s Ecodesign for Sustainable Products – which aims to improve EU products’ circularity and sustainability – coming in, delivering on circularity is fast becoming a necessity.
Environmentally, re-commerce reduces the amount of waste they’re directly contributing to landfills, lowers their carbon footprint, and helps them engage with consumers that who want to be more sustainable and financially savvy.
And businesses can reap the benefits of the transition commercially, too. A recent report conducted by Internet Retailing found that the European re-commerce market is predicted to grow by 60% by 2025, to €120bn, clearly providing huge economic opportunities for businesses.
What are the main challenges and barriers companies face when trying to implement re-commerce initiatives, and how can they be overcome?
One of the biggest challenges companies face when trying to implement re-commerce initiatives is ensuring that traditional online marketplaces and classifieds sites evolve to keep pace with the market-dominating global platforms that deliver brand-new, mass-produced products to consumers daily.
The key to success here is providing consumers with convenience, which comes through constant innovation. We need to make it as easy and convenient as possible to buy second-hand. Businesses and online marketplaces need to prioritise investing in technology that will help them to build the re-commerce platforms of the future — meaning they can offer consumers a smart, efficient user experience.
A shift in mindset and behaviour still needs to occur for a lot of consumers to want to engage more readily with re-commerce. A recent study by Barclaycard Payments found that Generation Z and younger millennials in the UK are most likely to shop second-hand, whilst baby boomers make up only 9% of spending in the re-commerce sector. We know the re-commerce market is growing at scale, but we need to make sure that we are taking everyone along on the journey.
How can companies influence consumer behaviour to support and engage with re-commerce and the circular economy?
The appetite for consumers to engage with re-commerce and the circular economy is already there. We just need to harness it.
One way we can do this is by providing more information and choices to consumers so that they feel empowered to make conscious decisions to shop more sustainably. Online marketplaces are uniquely positioned to provide consumers with an array of choices that many traditional retailers cannot. And all businesses have a role to play in providing information that is there to help educate consumers with the second-hand market. People need to have clear guidance on where they can shop second-hand and shake the belief that supply is limited or that a wanted item won’t be available. Once people experience the benefits of re-commerce, they’ll feel empowered to continue to shop in more sustainable ways.
One of the first things that companies have the power to get right is their supply chains, ensuring that those businesses that they work with all have sound sustainability credentials. Companies can lead by example by proving that they themselves are committed to being more circular, whether that’s across their operations, product offerings, or their services. This authenticity is critical.
What role does technology play in enabling re-commerce, and what infrastructure is necessary to support these initiatives effectively?
Technology is an integral enabler of re-commerce, powering online marketplaces for users to buy and sell goods wherever they are and whenever they want. Already, pre-loved items that consumers have never had easy access to before are now at the fingertips of millions, meaning it can truly become a worldwide movement.
But there’s more to be done. This is why businesses should invest in technology and collaborate across borders to build common capabilities. Digital technology acts as a powerful gas pedal, unleashing the potential of collective action on a massive scale, by making it easily accessible to all, with no barriers to entry. At Adevinta we have more than 2,700+ tech specialists across our platforms, so we can accelerate our delivery time of new solutions that enhance user experience.
Some ways that technology can accelerate the rise of re-commerce include the provision of faster transactions, generative AI speeding up of processes, better collection and application of customer data and innovations in cloud technology.
What kinds of policies and regulations would help promote re-commerce and drive the transition towards a circular economy on a larger scale?
We believe that Europe can be a global leader in driving re-commerce and championing circularity, but to get there we need to establish better cross-sector and cross-country collaboration. The key to this is sharing our learnings across borders to promote and drive new regulations and standards.
The EU Circular Economy Monitoring Framework is a prime example of this, offering to increase resource efficiency and reduce environmental pressures by measuring circularity.
Executive Profile
Antoine Jouteau has been with Adevinta (and previously Schibsted) since 2009, holding management positions at leboncoin, including Director of Business Development (Product & Sales & Marketing) from 2009 to 2012, and Deputy General Manager from 2013 to 2015. He was appointed CEO of leboncoin in 2015 and CEO of Adevinta in August 2022.
