Costing about 30% less than first hand devices, used gadgets emerge as a big draw.
With used cars, bikes and other durable products much in demand, India has always been a key player when it comes to secondary markets. Now, with the craze for gadgets catching up with Indians, second hand devices like mobile phones and laptops are emerging as a huge draw in the country.
Costing about 30% less than first hand gadgets, used devices, including smartphones, laptops, tablets, desktops, as well as televisions, are witnessing a huge demand.
“It is mainly people in the 18-35 years group, comprising students and working professionals, who seem keen on buying used gadgets,” says Dashradh Ram Nutakki, founder of YNew, a venture that is looking at opening four outlets in Bangalore that will sell “only branded second hand gadgets.”
Consumer experts say at a time when the economy is still in shambles, coupled with a slow job market, consumers look at methods of buying goods at lesser costs.
Estimates peg the market for used electronic devices, inclusive of washing machines and refrigerators, to be around Rs20,000 crore to Rs25,000 crore across the country.
“And like the second hand car market that has been around for a while now, used gadget market is picking up like never before.
Everyone wants some or the other gadget. But not all can afford to pay the premium it commands. Hence, second hand seems the best bet,” says a retail and consumer expert.
Mayank Agarwal, a 25-year-old engineer from Indiranagar, who works with an IT firm, recently purchased a second hand smartphone. “Right now, with a monthly salary of Rs25,000 and monthly rent of Rs8,000, I cannot really afford to spend lavishly on gadgets. But since smartphones are becoming more of a necessity, I went in for a second hand one.”
If consumers like Agarwal are driving the demand for used gadgets, then those like businessman Mitesh Parikh, who keeps buying the latest devices after giving away old ones, are driving the supply side.
Experts say currently, for every 100 branded new gadgets sold, 10 come into the second hand market. In the next three to four years time, this equation will change drastically, with 25 used gadgets coming into the second hand market, for every 100 new ones that are sold.
“This is because consumers want the latest technologies. Thus, both the demand and supply side for second hand devices is strong,” says Nutakki.
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