Source: ETRetail.com, Oct 09, 2019
As smartphones emerge as the flavour of this festive season, more refurbished
phones are hitting the market through the exchange offers run by Flipkart and
Amazon in parallel to their flagship sales.
Thanks to these exchange schemes, more number of used phones are coming into the system, and are being bought by refurbished phone companies such as Cashify, Budli, and others.
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.
“Around 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,” Faisal Kawoosa, founder and analyst, techARC, said.
Walmart-owned Flipkart told TOI that their flagship Big Billion Days sale 2019 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, as per Counterpoint Research. The report adds that despite a global drop in sale of secondary market devices, India is seeing a 9% growth.
Refurbished and used products platform Cashify has seen a 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, Mi.com.
Refurbished phones, that are available at 25% to 45% discount to new devices, are seeing a 15% month-on-month growth,” said Mandeep Manocha, co-founder and CEO, 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 e-commerce 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.