The company found that the used smartphone market sees better margins for retailers than new smartphones. In 2021 alone, new smartphones worth more than $ 15 billion were purchased online in India
India’s used electronic market will cost $ 11 billion (in value) by fiscal year 26 and is growing at a rate of 16% a year, according to a Redseer report.
Demand for used and branded smartphones has created a new sub-segment of refurbished electronics, the consulting firm said in a report Wednesday, adding that the used smartphone market is also expected to reach $ 10 billion by fiscal year 26.
Redseer attributes this to a new breed of start-ups and technology-enabled players [that] feed the growth of the used smartphone market in India. “
“Today, the renewed market provides rich opportunities for both consumers and companies. The growing popularity of e-commerce platforms for used and refurbished smartphones is driving market demand. Due to rapid technological innovation in consumer electronics, along with growing technological savvy, Indian consumers are often switching to newer devices, “said Siddhart Surana, Commitment Manager, Redseer Strategy Consultants.
The company found that the used smartphone market sees better margins for retailers than new smartphones. In 2021 alone, new smartphones worth more than $ 15 billion were purchased online in India, the statement said.
“With the number of smartphone users reaching the limit of 550 million, it is estimated that the average consumer of a re-selling application sells more than two smartphones from each household when the need to upgrade to new devices increases,” the report said.
The report emphasizes that re-players are dealing with the pain of the market for traditional used phones, 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 have been disrupted by organized players for digital retransmission, which drives the demand for used electronics. “Used devices are proving to be a more cost-effective alternative to the growing needs of consumers.”