Old is gold. Really. According to one estimate, the second hand goods market in India is about Rs 60,000 crore in size. That’s bigger than the whole e-commerce Industry’s present size.
Looking to tap into this market, startups are coming up and their entry point? Mobile phones and electronic goods. We’d earlier covered Recommerce hub, a startup which helps people sell and buy used mobile phones. In the process, it helps reduce e-waste.
Meet YNew, another startup in the same genre. The startup floated by Sloyd Ventures Private Limited, is looking to create a franchise network across the country to buy and sell used gadgets and appliances.
Sloyd, founded in August 2012, by Hyderabad based consultant Dashradh Ram Nutakki and his partner Mitesh Majithia, figures that the re-commerce business in India is going to be a big opportunity for startups like theirs.
“People are buying goods and sooner or later, replacement and upgradation will take place,” says Ram Nutakki.
YNew doesn’t take the e-commerce approach. Ram feels that e-commerce may not work well for used goods as buyers often want to see and examine the product before buying. The physical store located in Hyderabad stocks used mobile phones and gadgets sourced from sellers.
The startup deals in smartphones, laptops, desktops and televisions right now. The company picks up products from the sellers doorsteps, tests it in their labs and refurbishes it before selling. The product comes with a 30 day free service warranty which can be extended by buying an extended warranty.
Ram, who was a consultant with many e-commerce companies estimates that by 2016, a total of 26.2 million units of used consumer electronic goods including Flat Televisions, Smart Phones, Desktops and Laptops will be sold for over $4 billion in the country.
The online classifieds players will also want a share of the action. So far, most of them rely on advertising revenues as they don’t control end-to-end sales or have any value added services to offer. But the offline mode of buying and selling used goods makes sense in India where buyers are hard to please and look for warranties.