Redeem has announced a change in strategy to move away from low margin areas of the market.
This shift, announced at Redeem’s end of year results, will see the mobile phone recycler avoid 'volatile’ market segments.
Instead newly appointed CEO Paul Adams explained the business will look to get closer to networks and retailers who are now seeking a wider variety of services.
He said: ‘We are increasing our range of services to include, amongst others, device diagnostics and value-add refurbishment activities, in response to Mobile Network Operators and Retailers who are looking for a broader range of services from their suppliers.’
Speaking to Mobile at the beginning of the year, Redeem predicted that 2016 would signal a pre-owned boom as MNOs and retailers looked to make money from the second hand phone market.
O2 and Three have taken a number of steps into this space with trade-in schemes managed by Redeem. The company’s results showed that it recently hit the two million mark for total phones processed by O2’s Recycle programme.
Adams also explained that the brand will look to develop its Envirofone online shop. Redeem has taken a number of steps to become more consumer friendly, recently undergoing a major rebrand to become ‘easily recognisable’.
‘Two new areas of particular importance to the business over the next twelve months will be our online Envirofone shop’, Adams said, ‘where customers can acquire the latest handsets and the launch of our residual value proposition which will provide customers with a guaranteed value for their mobile device over the lifecycle of the product – helping them to move onto new products more frequently as new models are released.’