The firm found that the used smartphone market is seeing better margins for retailers as compared to the sale of new smartphones. In 2021 alone, new smartphones worth over $15 billion were purchased online in India
The used electronic market in India will be worth $11 billion (by value) by FY26 and it is growing at a rate of 16% compounded annually, according to a report by Redseer.
The demand for used and branded smartphones has created a new sub-segment of refurbished electronics, the consulting firm said in its report on Wednesday, adding that the used smartphone market is also expected to reach $10 billion by FY26.
Redseer has attributed this to a “new breed of tech-enabled startups and players [that] are fueling the growth of the used smartphone market in India”.
“The refurbished market today is providing a rich opportunity to both users and companies. The growing popularity of e-commerce platforms for used and refurbished smartphones is driving the market demand. Because of the rapid technological innovation in consumer electronics along with increasing tech-savviness, Indian users are frequently changing to newer devices,” said Siddharth Surana, Engagement Manager, Redseer Strategy Consultants.
The firm found that the used smartphone market is seeing better margins for retailers as compared to the sale of new smartphones. In 2021 alone, new smartphones worth over $15 billion were purchased online in India, it said.
“With the number of smartphone users reaching the 550 million mark, it is estimated that on average, a recommerce app user sells more than two smartphones from each household when the need to upgrade to new devices rises,” the report mentioned.
The report underscored that the recommerce players are addressing the pain points that the traditional used phone market used to struggle with, such as lack of transparency in pricing, time-consuming buying process, poor product quality, among others.
Surana noted that also due to the pandemic, unorganized channels were disrupted by organized digital recommerce players which propelled the requirement of used electronics. “Used devices prove to be a more cost-effective alternative to consumer’s growing needs.”
