Post the festive season, there is some great news for e-commerce players as they expect 80 per cent increase in the sales of refurbished phones. Every year the sales of refurbished phones increase during the festive season. In 2014, the sales were 300 units/day, last year, the sales were 700-1000 units/day and this year it was estimated to be 3000 units/day.
Yuvraj Aman Singh, Founder and CEO, Rocking Deals, shared, “It feels great to see such a drastic increase in the sales. People are now getting aware about refurbished and unboxed phones and their advantages. We are selling almost three times of what we were selling last year during the festive season. The market is getting bigger and bigger with each passing year. Some of our best-selling brands include iPhone, Samsung and Xiaomi.”
GreenDust, another brand in refurbishing, gives special offers throughout the year. And on the occasion of Diwali, they came up with Diwali Mobile Fest wherein one can buy a mobile phone for as low as Rs 599. Hitendra Chaturvedi, Founder & CEO, GreenDust, revealed, “Particularly this festive season, we have seen an incremental growth by 24 per cent.”
Asset or liability
Refurbished phones do not mean broken phones, as most of the refurbished stock is due to change-of-mind returns. These 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 it due to some reason or were simply sold by their previous owner.
The most common misconception is that ‘refurbished products are not guaranteed’. On the contrary, manufacturers and authorised 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.
In case of overcart, over-stock, unboxed, refurbished and pre-owned products, the company, prior to sales says that all the devices will undergo proprietary quality check diagnosis to ensure best in class quality, performance and customer satisfaction.
Likewise, “These phones are purchased by us and after several tests such as the authenticity, data sanitisation + functional test, engineer test and sample QC. We have started 1 lakh square feet factory for testing purpose,” he said. Singh further said, “We have hybrid technology that automatically tests the product. Rocking Deals sold close to 3000 units per day before Diwali.”
But now people are educated about the refurbished phones. And that is why today refurbished phones are hot selling products in the market because they are as good as new, something which the customer is getting at a much lesser price and also with quality check. The high demanded brands for online and offline are the same, that is, Samsung, Xiaomi, One Plus and Apple.
Thus, today the demand for refurbished and unboxed electronic products in the country is driven by Tier II and III cities. But this festive season, many companies are witnessing a rise in demand from metros too. According to a Shopclues survey, on an average the ratio stands at 40 per cent from top metros and 60 per cent from the remaining cities.