Mobile phones and electronic products have seen an increasing demand over the past two years, especially those that support the work-from-home culture.
While old land properties and precious metals are sold and bought freely, people are skeptical about buying depreciating assets involving technologies. Lately, with the involvement of trusted intermediaries, transactions involving used cars have gained traction.
Recently, to meet the requirement for work-from-home (WFH) and online classes during Covid-19 lockdowns, the demand for refurbished or unboxed electronic gadgets has also witnessed a surge.
“Every family and household is involved in financial planning to save money, and it is crucial. In 2021, we witnessed several people switching from buying new products to owning refurbished products to save some extra money. Mobile phones and electronic products have seen an increasing demand over the past two years, especially those that support the work-from-home culture. However, people have also understood the value of savings. Hence, there was a spike in the sale of new electronics devices and refurbished products. We have seen substantial growth in refurbished devices,” said Soumitra Gupt, CEO of Xtracover.
“While people living in urban and rural areas prefer new products in general, we have seen that consumers are now gaining interest in buying refurbished or unboxed products. Why? Refurbished phones can save up to 50 per cent of the cost of buying a new phone, but it is not only the cost that becomes a factor – quality of refurbishment, workmanship or the knowledgebase/knowhow of the refurbishment team, quality of spare parts used for refurbishment and what kind of warranty is the seller prepared to offer on the refurbished product – all these factors make up a good proposition for a consumer with high aspirational value but on a limited budget,” he added.
How digitisation is changing the saving and investment behaviour of individuals
Cheaper prices in comparison to new products and involvement of renowned companies in offering refurbished versions of their gadgets have also triggered the spike in demand.
“The pandemic has taught us a lot, including the importance of saving money. Buying expensive things on EMI is one alternative, but it usually comes with an added interest rate. While purchasing a product, one tends to look for alternative products available at a lower price. For example, it is like buying a lower or older version of the latest device launched by a big brand to make a sizable saving on the purchase. But when picking an alternative is not an option, one can look at refurbished marketplaces that offer refurbished or unboxed products at a relatively lower price along with a warranty,” said Gupt.
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