Refurbished smartphones get boost in festive season
Chennai: As smartphones emerge as the flavour of this festive season, more refurbished phones are hitting the market through exchange offers run by both e-tailers Flipkart and Amazon, in parallel to their flagship sales. On the back of exchange schemes, more used phones are coming into the system, and are being bought by companies that deal in refurbished phones, including Cashify and Budli.
An estimate from tech consulting firm techaARC finds that in 2019, the contribution of refurbished phones is 8.1% of the total smartphone sales compared to 7.3% in 2018.
“A good 20-25% of smartphone purchases on e-commerce platforms used to happen through exchange offers, and this festive season this ratio is definitely much higher, given the upgrade mindset of consumers,” said Faisal Kawoosa, founder and analyst at techARC.
Walmart-owned Flipkart told TOI that their flagship Big Billion Days sale this year saw a 2.5X increase in adoption of product exchange in mobile phone purchases. “The Complete Mobile Protection scheme, which includes our buyback guarantee of 40% exchange value, has witnessed an exponential growth, wherein we sold 2X the monthly average in just the first two days of our sale,” Aditya Soni, senior director — Mobiles, Flipkart, said.
Globally, India continues to see the highest year-on-year (Y-o-Y) growth in consumption of secondary market devices, according to Counterpoint Research. The report adds that despite a global drop in sale of secondary market devices, India is seeing a 9% expansion in this segment.
Refurbished and used products platform Cashify has seen 150% growth in numbers starting September 29 (coinciding with the sale season). “The buyback via e-commerce sites during the festive season sales is 10X the normal daily buyback volume.We have partnered with Flipkart, Amazon, Paytm Mall, and Mi.com. Refurbished phones are available at 25% to 45% discount to new devices, and are seeing 15% month-on-month growth,” said Mandeep Manocha, co-founder and CEO of Cashify.
Rohit Pagaria of Budli.in adds this festive season has brought a 20-25% jump in arrival of used phones this year. “While the phones from the ecommerce platforms are yet to come in, since the sale season is just done, individuals are selling their used phones on our platform to plan for new purchases,” he added.