2024-09-23 13:33:19 :
New Delhi-based ReFit Global, featured in Season 3 Shark Tank IndiaFounder and CEO Saket Saurav said it expects sales to exceed 350,000 units in the last three months of the year, which would be more than half of its projected sales for FY25 Mint.
Mandeep Manocha, CEO of Prosus-backed Cashify, said Cashify could more than double its smartphone purchases to 250,000 to 300,000 units per month compared with normal times.
“The weeks leading up to the holiday season are a time when consumers are trading in their old phones in preparation for new ones, which presents a huge opportunity for us,” Manocha said. Mint.
Refurbished devices have grown in popularity over the past few years, providing users with a cost-effective way to buy stylish smartphones and laptops at low original prices.
The festival, which usually starts with Raksha Bandhan or Independence Day in August and continues till New Year’s Eve, usually brings a 30-40% increase in demand for refurbished goods, especially in expensive tier-2 and tier-3 cities. An e-commerce executive who spoke on condition of anonymity said the sensitivity is higher.
Cashify’s Manocha noted that users are increasingly looking to high-end brands like Apple iPhones and Samsung devices to make ideal purchases and keep up with trends.
Prabhu Ram, Vice President (Industry Research Group), CyberMedia Research, said, “The consumer base in India is diverse and some consumers seek refurbished devices due to their increasing accessibility, affordability and availability. ” Mint.
Additionally, refurbished units come with monthly payment options, which makes the offer even more attractive.
“E-commerce platforms have further normalized second-hand buying by showcasing verified, certified refurbished goods and new products, making these items more mainstream and accessible. Improvements in aesthetics, packaging and flexible financing options have also contributed to a change in perception ,” said the aforementioned e-commerce executive.
India’s second-hand market has also benefited equipment manufacturers. Counterpoint Technology Market Research estimates that refurbished iPhones will account for 11% of Apple’s used smartphone sales by 2022, up from 3% the previous year, making it the fastest-growing refurbished brand in India.
Consumers remain vigilant
However, many value-conscious consumers are starting to face the dilemma of purchasing retrofit equipment, especially as new equipment becomes more affordable and easier to use.
Apple’s iPhone 16 hit the market last Friday with one of the lowest first-day prices of any new iPhone. With bank tie-ups, discounts and exchange offers, the iPhone 16 base model can be purchased for $48,900 more than the official selling price $79,900.
Over the years, online festival sales like Flipkart’s Big Billion Days and Amazon’s Great Indian Festival as well as offline sales by Reliance Digital and Croma have provided consumers with affordable offers and easy financing options, making first-hand purchases an attractive choice.
“If I had the option to avail no-cost EMI on purchasing a brand new product $50,000 smartphone, I would buy it instead of a refurbished phone,” said Mayur, a 23-year-old marketing executive in Bengaluru who opts for a redesigned phone every four years.
Durga, a chef in Mumbai, added that she would be willing to spend more on a new iPhone if she could get it at a significant discount on the marked price during Flipkart’s Big Billion Days sale, which is scheduled to begin on September 26.
Once hailed as a fast-growing segment, the Indian handset refurbishment market is now slowly decelerating due to increasing market maturity and consumers upgrading their smartphones less frequently. Counterpoint Research estimates that the market will grow by high single digits in 2022 and by 20% annually from 2020 to 2022.
The market remains largely unorganized, requiring companies to work hard to educate users about authenticity.
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