Flipkart launches 2GUD for refurbished products
The market for used and refurbished mobile phones has skyrocketed in the last couple of years. Technology has become a necessity with each passing day as the population as well as the penetration of phones is extensively high. The expansion of e-commerce and retail chains has made the availability of used and refurbished mobile phones easy and this easy accessibility has triggered a strong growth in India too.
Experts and analysts expect that the market for refurbished phones will rise by a compounded 27% over 2019 and 2020. New players will join existing online marketplaces like Amazon, Cashify, Shopclues and Togofogo. In India, millions of mobile phone users still purchase second-hand phones as they prefer buying refurbished or used phones with the features they need in less price than settling for a new phone at a comparatively higher price with lower specifications. The Refurbished mobile phones category is thus growing at 400% year-on-year and its contribution to overall mobile phone sales has almost doubled in 2017.
India’s appetite for refurbished or second-hand smartphones is set to grow in the next two years, alongside the expanding market for new phones, driven by demand for aspirational brands such as Apple and Samsung at heavily discounted prices. The growing desire to upgrade to a new model has given the used and refurbished market an impetus and is expected to maintain its pace over the coming years.
To meet the growing demand of the consumers from across the globe, the companies offering refurbished and used mobile phones are collaborating with e-Commerce companies and product suppliers for increasing their business revenue and adopting new innovation strategies. These initiatives are expected to enable the vendors of used and refurbished mobiles phones to reach out to new potential customers in emerging markets and also explore and venture into untapped markets.
The government also expects the Make in India programme to encourage companies to set up refurbishing operations in the country, which in turn will propel infrastructural growth for the segment.
The refurbished products market is anticipated to reach $12-15 billion in the year 2020. This space, which is largely driven by unorganized local retailers and various grey markets in key metros in India is getting addressed by organised players slowly and steadily by creating a dynamic marketplace where consumers can choose products with warranty and services attached with the help of service providers. Various organisations are into this services that includes GreenDust, Reboot, Overcart, Togofogo, Surpluss on one hand and eBay(Shutdown of eBay India operation) and Amazon on the other; many organised players are tapping into the opportunity.
Flipkart has launched an independent platform for refurbished products, starting with a mobile site. Called '2GUD’, the platform initially offers smartphones, laptops, tablets and electronic accessories, with large appliances to be added soon. Prices will vary from 50-80% of the original product’s price depending on the level of certification. The platform is already live.
The (refurbished site) is for the aspirational customer in India, Flipkart's CEO Kalyan Krishnamurthy said, “The refurbished market is unorganised and we want to organize it and break the barrier of trust.”
Several members from the eBay team have been integrated with Flipkart's 2GUD team. Products ordered on 2GUD are refurbished by sellers either using Flipkart's company, F1 Info Solutions or other third party services. However, the company offers a post purchase warranty of 3 to 12 months.
F1 Info Solutions and Services Private Limited, a Flipkart Group Company is one of the fastest growing Neutral Service Provider offering comprehensive life-cycle services for Mobility, IT & IT Peripherals, AV & Enterprise Solutions, and Displays & Consumer Electronics.