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India’s market for refurbished smartphones and electronic devices is expected to see 18% year-on-year revenue growth during the upcoming festive season, outpacing the new phones segment where growth is expected to hover around 7%, said market trackers and industry executives.
ReFit Global and Cashify are among the sellers of refurbished phones and devices that are also expecting a sharp increase in top line during the festive season – set to start next month – on the back of burgeoning demand for high-end smartphones.
“We are expecting to grow our revenue by three times, with a projection to reach ₹200 crore in the last three months, crossing our FY22 revenue record by December,” said Saket Saurav, cofounder of ReFit Global, which has ties with ecommerce giants Flipkart and Amazon.
Saurav said there’s good demand for aspirational brands such as Apple and OnePlus in the big cities, outstripping supply. This in turn has pushed up supply of used phones.
“In the past 8-10 months, supply from both brands (Apple and OnePlus) has seen an upward trajectory,” he said. “Earlier, these two brands would contribute 3-3.5% of the total volumes, but now it has increased to 9-10%.”
Cashify, one of the largest sellers of refurbished devices in India, said it is planning an aggressive promotion campaign during Diwali, when it expects to double its revenue from last year.
It is taking an omni-channel approach by converging its online shop and more than 2,000 offline retail stores, besides introducing categories such as refurbished smart watches and laptops, cofounder Nakul Kumar told ET.
Cashify sells Apple, Samsung and OnePlus devices in the ₹18,000 to ₹22,000 range across online and offline channels, Kumar said.
“It is through iPhones that businesses get the most margins. It is also the driving factor for increase in ASPs in the Indian refurbished market,” said Tarun Pathak, research director at Counterpoint Research.
Pathak said in the upcoming festive season, the refurbished segment could grow at 18% year-on-year. “The models anticipated to drive these sales primarily include iPhone 12, iPhone 11, Galaxy S21FE, Galaxy S21, Redmi Note 10 and others,” he said.
According to Pathak, the steady increase of new iPhones over the last three to four years has formed the required base for this increase. “In the absence of imported volumes, the domestic supply is trying to cover an unprecedented demand for iPhones in the refurbished markets in India,” he said.
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