Demand of Refurbished products

Reduced incomes, long hours spent at home, and the constant upgradation of technology have led to a tremendous surge in the demand for refurbished items. The refurbished devices industry has picked up pace in India in recent years. The fast-growing refurbished electronics space is dominated by the grey market and the future is promising for refurbished products - not just mobiles but other categories as well.

Many people are happy in choosing the refurbished route, both for a handsome amount of monetary savings and secondly, they can also own desired brands.

Since the price difference between the new and the used products can be significant. The used smartphone market is seeing better margins for retailers compared to the sale of new smartphones. The used smartphone market is also expected to reach $10 billion by FY26.

Refurbished products have shown a significant benefit for both consumers and sellers. This is perhaps the main reason why customers opt for these products instead of buying new ones.

With the number of smartphone users reaching the 550 million mark, it is estimated that on average, a recommerce app user sells more than two smartphones from each household when the need to upgrade to new devices rises.

Since refurbished products are tested more intensively, they’re less likely to contain any flaws compared to their new counterparts. The pandemic has not only impacted on adults, but also on kids for whom the concept of school changed suddenly. We could see a surge in demand for an extra device that could be purely transactional and for official purposes.

For such a use case, a refurbished device serves as the most economical option. Refurbished products are sold both, in online and offline mediums through ecommerce or small retailers. Ecommerce giants like Amazon, Flipkart, and others also have a separate vertical to sell refurbished products.

Refurbished devices are not just limited to mobile phones. They are available across categories, from home appliances, laptops, accessories etc. The industry also has the potential to reduce e-waste generated, enabling people to make the most of their investment in buying a product.

There are many tech-enabled platforms which are trying to tap into the potential of the refurbished or used electronics market in India that is already growing at a CAGR of 16% and is expected to be worth $11 billion by FY26. Even many technology companies sell the refurbished products through their partners, where the partners also get some impressionable margins.

At the same time, there are some cases reported that at the time of buying, on the packet there is nowhere mentioned about the refurbished products, it is only a person comes to know about the fact, when there is any fault found during the period of 12 months warranty.

There are also certain other cases reported, many customers deal with unorganised players where there is a lack of transparency, limited selection and availability, no quality assurance or warranty, and absence of clarity about the genuineness of the gadget. It is very common for fake or stolen devices to be sold to unwary customers.

S Mohini Ratna, Editor, VARINDIA