Want to get a phone this festival season?

September 27, 2024 09:34

It is not just new smartphone launches that will highlight festival-season sales this year; refurbished mobile phones are also seeing a demand surge.

Platforms that sell refurbished smartphones, such as Flipkart, Cashify and Grest, are reporting strong demand, particularly for high-end devices like iPhones.

This growth in the refurbished market -- also called recommerce market -- is driven by a rise in demand for premium smartphones, mainly the Apple iPhone series and Samsung Galaxy S series, as they become more accessible to consumers at significantly lower prices.Affordability, various financial options, and improved after-sales services from sellers are some of the key drivers of this segment.

"Volumes (of refurbished smartphones) are likely to keep increasing as demand increases. A large number of consumers want better devices and are willing to pay for them," says Glen Cardoza, senior research analyst, Counterpoint.

According to a report by consulting firm Redseer, the refurbished electronics market in India could grow to $11 billion in gross value by March 2026. With the festival season around the corner, companies in this space are expecting a significant surge in sales. Larger players are also anticipating growth. E-commerce giant Flipkart, for example, recently launched its own business-to-business (B2B) app for refurbished devices called 'Flipkart Reset for Business'.

"The rise in demand for refurbished devices is driven by several factors. Affordability is a major driver, as refurbished products offer a cost-effective alternative to new devices, appealing particularly to budget-conscious consumers in India's Tier-II and -III cities," says Ashutosh Singh Chandel, senior director and business head for recommerce at Flipkart.

"Additionally, the quality assurance provided by Flipkart Reset for Business, including rigorous testing and comprehensive warranties, helps alleviate consumer scepticism about refurbished products," adds Chandel.

Currently, Flipkart Reset sells smartphones and accessories and serves over 800 cities across 29 states.

Cashify, one of India's largest recommerce players, reported a 444 per cent increase in revenue from refurbished smartphone sales in 2023. The company also recorded 25 per cent growth in its buyback business.

The company attributes the surge to promotions, warranty offers, financing schemes, and increased awareness of the advantages of refurbished devices.

"We are witnessing a transformative moment in new launches, characterised by artificial intelligence, 5G, the emergence of foldable phones, and a growing focus on sustainability,' says Mandeep Manocha, co-founder and CEO, Cashify.

-- Aryaman Gupta/Business Standard

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