In order to know about the insights of the refurbished industry, it is very important for people to know what exactly Refurbished products are. Refurbished products are those products that incurred minor exterior damage from shipping, product served as a demo unit on the floor of a storeroom or tradeshow or even if the product is an overstocked item not sold on time the next generation becomes available.Some other common reasons can be that they are either sent back by customers because they did not like due to some reason or were simply sold on by their previous owner.
Misconceptions about Refurnished Products
It is very important to rectify the misconceptions that people have for Refurbished Industry. The most common misconception is that ‘Refurbished products are not guaranteed’. On the contrary, manufacturers and authorized dealers guarantee their refurbished products in writing. For example, they give a 90-day product warranty upon purchase of a refurbished product. Customers can further protect their refurbished item with an extended warranty of up to three years in certain cases.
Another common misconception is that ‘Refurbished products are defective’. The retail Industry experts say that products are returned for a slew of reasons unrelated to defects. Retailers commonly have a 30 day return policy for electronics, and returns often happen as a result of buyer’s remorse, or the customer found a better deal after the purchase was made, or didn’t like some arbitrary feature about the product.
The most demanded products of the industry are the refurbished phones. Such phones have been checked properly by the experts and if necessary repaired to full working order. The best thing about refurbished phones is that they have been tested, and usually comes with a warranty.Refurbished, unboxed and used phones business is on a high and will remain on a High due to 2 basic reasons; first is the young generation and second is that India is the second biggest market of smart phones in the world.
The refurbished industry is 5 times the brand new mobile phone Industry. Even inworse case it is 2 times the brand new Industry. The reason behind this difference is that it includes everyone who has a used phone and anyone who is willing to buy a phone. At the same time there are a lot of difficulties in the business of refurbished products as nowadays every household have couple of phones that are being used. Some people even carry 2 to 3 phones. Selling and buying used phones becomes a big challenge because the seller would think that he can get a better price elsewhere and the buyer would always have a mindset that the phone is problematic.
The revolution started since the ecommerce players came in with exclusive models and started selling lakhs of phones every single day with return policy that is as easy as the return policy of an unused product. Thousands of customers have an option to return those phones as they are in the one month return policy. Right now customers are buying deals where they are saving money and also getting the guarantee from the portal through which they have purchased the product.
Retail for this business would be the best option as the customer can see the actual product before buying it. The confidence and the customer interaction during his decision making process is very crucial. The mentality of the customers gets affected due to the unethical vendors who are spoiling the market by selling inferior products at cheaper prices.
Apart from this there is a need to educate and demonstrate the customers about the complete life cycle of these products which even includes after sales services, extended warranties etc where the customer is safeguarded what if the phone has some problem after 2 months then they still have an option in hand.
The Future aspect of this segment is purely based on goodwill and trust. Whoever makes an edge and wins the customer’s trust will be on the top of the pyramid. Simple formula is everyone wants to upgrade. The economy goes up or low, the mobile phones have now become a necessity. People may buy cheaper phones as connectivity is a necessity in life and that is how it keeps us going.
Authored By: Yuvraj Aman Singh, Founder & CEO, Rocking Deals