Re­fur­bished smart­phones get boost in fes­tive sea­son

The Times of India (New Delhi edition) - - Times Business - Sindhu Har­i­ha­ran & Aparna De­sikan

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.

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