Over the past several years, sales of reconditioned phones have increased dramatically in India, a market that is developing quickly. The mobile buyback section of the re-commerce site Cashify grew by 154% year over year (y-o-y) in 2021, and between 2021 and 2022, it repaired close to 3 lakh devices.
As per the sources, in an exclusive interview, Nakul Kumar, co-founder, and CMO of Cashify stated that the platform’s refurbished phone category, PhonePro, experienced a 4-time rise in the previous year.
Cashify CMO and Q&A Interview
The interview’s trimmed version is shown below:
Q: How has India’s market for reconditioned smartphones expanded?
A: Particularly during the epidemic, the reconditioned market has experienced a sharp increase in acceptance in recent years. When compared to a few years ago, consumers preferred to keep using their present phone rather than purchase a smartphone that had been previously owned. In contrast, you increasingly see individuals favouring used smartphones over brand-new ones.
The fact that refurbished smartphones cost approximately half as much as new ones is a key driving force behind this. Additionally, Cashify offers a 6-month warranty on each gadget to make refurbished products more dependable for clients.
Overall, buying used is not only more cost-effective but also more environmentally friendly. If we want to safeguard both our wallets and the environment, it’s the best course of action.
Q: Will the current situation, when customers are limiting their purchases owing to inflation, result in a decrease in demand for refurbished smartphones?
A: According to Nakul, he doesn’t anticipate a decrease in the market for refurbished goods. In actuality, it must increase. People aspire to “get more with less” as they become more and more value-conscious. If you can obtain your ideal phone for roughly half off without sacrificing quality, upgrading to better and more modern technology will be simpler for you. Demand for both new and used products is currently fairly balanced. In the upcoming years, we’ll have to wait and watch how things turn out.
Q. Is there a market for reconditioned 5G smartphones?
A: In 2021, the demand for new 5G devices has significantly increased. Even mid-range 5G smartphones are being released by several OEMs. The market for refurbished 5G cellphones is also showing this increase at a similar rate. People’s desire to buy the newest technology is increasing as it transitions from 4G to 5G technology. This is a general trend.
Q: What conclusions can you provide from your recently published annual “User Behaviour whitepaper” regarding the market for used smartphones?
A: The survey’s results are intriguing. According to our third user survey, which included 8000 respondents from across the nation, 62% of respondents changed their devices between one and three years due to upgrading to newer models with better technology and features (54%), switching to a more expensive flagship phone (26%), and changing their older models because of lag time when performing tasks on them (15 percent).
Another interesting discovery was that consumers aged 25 to 44 sold the most phones in the previous year, with 84% of men and 16% of women. One thing that became clear when discussing reconditioned smartphones is that those who purchase them adore them.
We say this because, of all the respondents who purchased reconditioned smartphones in the last two years, 85% of them indicated that they would do so again. While 70% of respondents purchased a refurbished phone owing to affordability, 13% of respondents purchased it as a gift for a loved one, and 12% purchased it as a spare device.