Your guest in the big interview live on Boursorama is Enrique Martinez, CEO of Fnac Darty. Hello.
So, you have just presented your new strategic plan. If I understood correctly, you are always betting more on both services and customer experience and sustainable responsible consumption.
Because we started a shift with our last Everyday plans around sustainable consumption, repair, product durability, and these plans take us even further because we renew our ambitions and we are going to extend our service models and subscription and repair on an even larger scale.
So exactly, subscriptions seem more than ever at the heart of your strategy. You want to double the number of subscribers to DartyMAX and reach 4 million by 2030.
4 million is the ambition for all service programs. DartyMAX will obviously be the most important, but there are others. There are other services around digital access, protection, information, and we also propose to extend and diversify the services we can offer our customers. Services that are needed to manage their home, their daily life, their access to data and information. And in fact, the ambition of 4 million demonstrates that we have enormous potential for development to strengthen the link with our customers and also, I must say, to create a more resilient economic model that is less dependent on the vagaries of consumption, particularly product transaction. And the answer is therefore subscription because subscription has better margins and offers recurring revenue.
So, there is the question of recurrence, there is also the question of industrial capacity to anticipate customer needs. The more we have, the more we repair 2.6 million products per year. That means thousands of products, tens of thousands of parts to manage. The better we can anticipate, the better we know customers, the better we can structure them. The lower the execution costs of these services, and the less the customer will pay. So repair, because we are scaling up, contributes to the group's margin. 25% of the group's gross margin today comes from services, 25%. So it's already more than a quarter. The goal is to reach 35, 30 at least 30 by 2030. So that leaves us with a significant journey. Obviously, products will not disappear because there is still innovation, product diversification, and customers need to equip themselves. But the share of services is becoming increasingly important for us.
Hm. You said the word home. The idea is to help the French, and that's why you are venturing into energy with the installation, maintenance, repair of boilers, electrical panels, or even heat pumps. That's the idea. But it's a new business for you.
It's interesting because we made a big acquisition last year in Italy. We bought the Italian Darty, to simplify, and Unieuro, and it has already entered this area through a subsidiary called Coverc, which does exactly this type of service diversification. So we obviously intend to take Italy even further and then look for opportunities to launch this type of service in our other countries. Well, always more repaired products. So we understand at Fnac Darty, the ecological transition is not a marketing concept for you, it is really the heart of the reactor of the transformation of the Fnac Darty group.
But it must be sustainable and economically accessible for consumers because we see that today we are in times of strong tension in terms of purchasing power and consumer confidence. So we cannot ask too much effort from the consumer today. It must be accessible with little effort and low cost. So repair by subscription is, for me, the only possible answer if we want these phenomena of the circular economy, not just repair but recycling, refurbishment, and resale of products, to become more significant in our business cycles.
How much can this whole sustainable economy weigh within Fnac Darty in the future?
It's 25% of the margin already, that concerns services broadly. In terms of revenue, we are around 200 and some million euros already in revenue on products, on growth, billions in revenue. Yes, yes. So it's small but at the same time it's starting to become significant for us, and growth is still around 30 to 40% per year. So we drink well, and it's probably not due to a lack of consumer interest, it's also the ability to recover products and put them on the market. So there is a whole investment effort in the refurbishment sector because it is a short circuit. We don't send products to be refurbished on the other side of the world. We have to do them here in our workshops in each of our countries, and we are investing in both teams and tools to make it economically viable and also to give quality guarantees to customers. I think it's a market that has been created, obviously like any start. At the beginning, there is a lot of opportunism. Many people enter without giving the necessary guarantees. So there are many bad products, sometimes fake batteries, and so we enter these markets to provide guarantees.
You are a trusted third party.
Absolutely. And we provide guarantees. We even invented a system called digital passports that we hope the industry will adopt to have complete traceability of products with blockchain, and each product will have its own ID card or passport, and that again to strengthen consumer confidence when they buy a product that is not stolen, that has been well maintained with good parts and by official technicians. So that's important to give credibility to these markets that are establishing themselves and which I think have potential to develop strongly.
