Dynamic growth of the refurbished smartphone market in India: Business Head of Recommerce at Flipkart

As the refurbished gadgets market flourishes in India, Flipkart explains the refurbished technology mantra in changing consumer perceptions, driving forces and the future of re-commerce in a technologically advanced country like ours. “India is leading the global refurbished smartphone market, registering 19% year-on-year growth in 2022,” says Ashutosh Singh Chandel, senior director and business head, recommerce, Flipkart.

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It also highlights the growing trend among consumers towards sustainability and a circular economy, which is driving global demand for refurbished products. This trend is gaining momentum in India, with an expected doubling by 2025.

How has the perception of refurbished gadgets evolved in India over the last few years??

The perception of refurbished gadgets in India has undergone a significant transformation in recent years, evolving from skepticism to acceptance and preference. This change is caused primarily by a combination of factors. Rising disposable incomes coupled with the desire for premium technology have led to an increase in demand for smartphones, gadgets and devices. However, the high cost of these devices often represents a barrier to entry for a large segment of the population. Especially in the smartphone segment, frequent phone upgrades by consumers, driven by fast release cycles by OEMs, are driving India’s booming pre-owned smartphone market (or refurbished smartphone market). This trend is especially visible after holiday sales periods, when the number of purchases of new phones increases, leading to an increased supply of used devices.

Manufacturing and mining account for 85-95% of phones’ annual carbon footprint. According to the International Journal of Life Cycle Assessment (2021), this footprint can be reduced by up to 55% through refurbishment compared to purchasing and using a smartphone for 2.5 years. Refurbished gadgets provide an alternative by providing high-quality devices at much affordable prices.

Moreover, growing environmental awareness among Indian consumers has played a key role in driving demand for refurbished products.

What are the key consumer segments responsible for the growth of the remanufactured gadgets market?

The refurbished gadgets market in India is driven by two main consumer segments: budget-conscious consumers who want premium devices, and environment-conscious consumers. The first segment is looking for affordable yet high-quality devices, primarily in tier II and III cities. In turn, ecologically conscious consumers, mainly in urban areas, are guided by concern for sustainable development. While both segments contribute to market growth, their motivations and purchasing behaviors differ significantly. As the market matures, we are also witnessing the convergence of these segments. Increasing environmental awareness and rising disposable incomes are leading to a larger consumer base that values ​​both affordability and sustainability.

How does the refurbished gadgets market in India compare to other global markets?

The Indian refurbished gadgets market is witnessing exponential growth compared to global markets, driven mainly by the growing young and eco-conscious population, rising disposable incomes and growing preference for affordable yet high-quality products. For example, in 2021, Latin America and India recorded the highest growth rates of 29% and 28%, respectively, for refurbished smartphones. Moreover, India is leading the global refurbished smartphone market, registering 19% year-on-year growth in 2022. The trend towards sustainability and circular economy is driving demand for refurbished products globally. This trend is gaining momentum in India, with a doubling of growth expected by 2025. Overall, the Indian refurbished gadgets market is not only growing rapidly but is also leading in terms of volume growth compared to other markets. The ICEA and IDC report predicts that by 2025 the used smartphone market will reach 51 million units and their value will be USD 4.6 billion. Flipkart’s strong recognition, extensive logistics network and customer trust enable us to uniquely leverage this growth.

What is Flipkart’s vision for the refurbished gadgets market in India?

At Flipkart, our vision for the refurbished gadgets market in India is to create a sustainable and organized ecosystem where customers have access to high-quality pre-owned electronics at affordable prices. We believe that recommerce is not just a business model, but a commitment to environmental protection and the circular economy. The idea is to give gadgets a second life, reduce the amount of electronic waste and make the technology available to a wider audience. We make sure that each refurbished product meets rigorous quality controls, thus building customer trust and satisfaction. Currently, in the key mobile and device segments, one in three consumers chooses to donate their old devices to Flipkart, which helps us drive the growth of our re-commerce business.

How does Flipkart ensure the quality of the refurbished tech gadgets it offers?

We have invested significantly in building a solid recommerce ecosystem, including a state-of-the-art renovation factory with a capacity of over 80,000. phones per month and strategic acquisition of Yaantra in 2022. Our technology-led approach ensures that each device undergoes rigorous quality checks and is thoroughly assessed and classified using our proprietary Flipkart Diagnostic app. This price transparency reflects the true condition of the product. Furthermore, our technology has enabled critical function testing processes to minimize human error, ensuring that customers receive devices in optimal working condition.

In addition to quality, we focus on authenticity and transparency. All refurbished products undergo rigorous verification to ensure their originality. Our platform provides detailed product information, including condition reports, to enable customers to make informed decisions.

What role does technology like artificial intelligence play in Flipkart’s recommerce business?

Artificial intelligence is changing the rules of the game in the recommerce industry. By automating processes such as product pricing, image recognition and quality assessment, artificial intelligence significantly increases operational efficiency and reduces costs. Moreover, it enables dynamic pricing strategies based on real-time market trends and consumer behavior. On the customer side, personalized recommendations and status reports powered by AI build trust and loyalty. As a result, retail companies can scale their operations, improve margins and contribute to a more sustainable future.

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By continuously investing in technology and artificial intelligence for better and more objective ‘on-the-fly’ assessment at the time of receipt of an old device, Flipkart aims to build a sustainable recommerce ecosystem that benefits sellers and customers.

Artificial intelligence and machine learning play a key role in improving quality assurance processes. Using advanced algorithms, we can effectively analyze huge amounts of data to identify potential defects and anomalies in devices. To further optimize the renovation process, we are exploring the use of artificial intelligence to accurately assess the cosmetic condition of devices.

How is AI being used to personalize the shopping experience for refurbished gadgets for customers on Flipkart?

We currently sell refurbished devices through a network of sellers who purchase devices using the Flipkart reset for Business app. Our goal is to provide buyers with an accurate assessment of device health, and AI will play a key role in providing this transparency by ensuring an accurate assessment of the device’s physical health.

What are the key trends shaping the refurbished technology gadgets market in India?

The refurbished tech gadgets market in India is evolving, with a noticeable shift in consumer preferences towards more sustainable and cost-effective options. The rising cost of new products has led consumers to seek out refurbished electronic devices that offer similar features at an affordable price. The market is experiencing a boom in organized sellers, which is increasing the availability and credibility of these products.

Online marketplaces have become key players, providing consumers with convenience and choice. The industry is also observing an increase in interest in alternative environmentally friendly solutions and growing confidence in the quality of refurbished products. With the used electronics market expected to reach $11 billion (in value terms) by FY26 and growing at a compound annual growth rate of 16%, it is clear that tech-savvy buyers are increasingly interested in refurbished smartphones , laptops and other electronic devices for home use. high-end features at competitive prices. Improved renovation processes and transparent pricing have further strengthened consumer confidence, making online platforms the preferred shopping destination.

Our recent introduction of the Non-Functional Smartphones and Devices Replacement Program is testament to our commitment to a circular economy. This enables customers to replace non-functioning large and electronic appliances with upgraded products, from devices such as TVs, refrigerators and washing machines to laptops, smartphones and internet-enabled phones. In addition to the attractive price of old appliances, customers can also enjoy the convenience of having their appliances assessed and collected directly at their home.

What are the major challenges facing the refurbished gadgets industry in India?

One of the main challenges is consumer perception of refurbished products, which often associates them with lower quality or reliability. Moreover, the logistics of collecting, refurbishing and redistributing gadgets on a large scale is a complex operation requiring significant investment and coordination. To address these challenges, Flipkart actively implements stringent quality checks and offers warranties to increase consumer confidence in refurbished products. In terms of logistics, we leverage our robust supply chain infrastructure to streamline operations with a vision to organize a largely unorganized sector.

However, unique challenges remain in the revitalized Indian market. Consumer confidence and the perception of refurbished products remain key obstacles. Building a solid trust ecosystem, ensuring product quality and offering comprehensive guarantees is crucial. Additionally, the lack of standardized renovation processes and organized supply chains creates operational challenges. To address these issues, Flipkart is investing in state-of-the-art and technology-driven refurbishment facilities, stringent quality controls and transparent certification processes. By building trust and offering a wide range of certified refurbished products, Flipkart aims to revolutionize the refurbished gadgets market in India.

Jayesh Shinde

Executive Editor at Digit. Technology journalist since January 2008, working at Indiatimes.com and PCWorld.in. Enthusiastic dad, reluctant traveler, weekend gamer, LOTR nerd, pseudo bon vivant. View full profile