The refurbished smartphone market is seeing a boom in growth thanks to emerging markets.
A refurbished smartphone is often mistaken for a regular second hand one. They are both pre owned. However, a refurbished smartphone is not sold by an individual. Either the smartphone manufacturer, an authorized network or retailer is involved in the trade. These entities run checks, fix if need be to ensure that the gadget is up to an expected standard.
Currently, refurbished gadgets especially smartphones are highly sought by individuals as well as businesses because they offer a cost effective option. Basically, the refurbished smartphone market is projected to experience significant growth in the future at a global level.
According to Glen Cardoza from Counterpoint Research, this market grew by 15% YoY in 2021. This growth was mainly attributed to consumers being more aware of promoting sustainability, shortage of new smartphone models, among others.
E-commerce platforms all over the world have emerged to cater to the refurbished smartphone market that is gaining massive popularity. The existing ones such as Amazon, Alibaba, eBay and others have begun selling the same on their sites.
Latin America and India have shown the biggest market increase in 2021, says Telcom News. India is the one country in the Pacific and Asia that has gained the largest traction for this product. Persistence Market Research is attributing this mainly to the lower prices they possess. The market expected to grow by 450% between 2021 and 2031.
In Australia, this market has been embraced mainly because of the need to manage e-waste which is growing by 300% in the country. Major players in the industry taking part in this movement include Phoenix Cellular, Cole’s, and Boost Mobile.
In Africa This Market Is Growing Exponentially
There is no let up in Africa when it comes to this booming market. The pandemic was a major factor that promoted this. During this time, the production of new smartphones was slow and the prices of those in sale was high. Putting two and two together, Africans sought a solution which was buying second hand smartphones.
According to Financial Express, Africa showed a tremendous increase in the sale of pre owned smartphones in the second half of 2020 giving an insight in market domination alongside India. The industry is thriving because these regions are also proving to possess more entities in local tech repair functionalities. In addition, the consumers say that they would rather purchase a fairly used top tier smartphone like Apple or Samsung instead of a similarly priced brand new budget smartphone.
Nigeria’s Eze Wholesale has not only mastered the refurbished smartphone markets but also other electronics as well. This ecommerce was founded to counter the inconsistent pricing and supply that the consumers faced. The company also ensures faster turnarounds because it has reduced the number of intermediary brokers found in the supply chain.
Badili Africa of Kenya which started as an official buyback enterprise for renowned old phone brands currently has an ecommerce platform that sells refurbished smartphones. Clients here are assured of gadgets that are in good working condition as well as a 6 month unlimited warranty with support from their technicians.
Additionally, in South Africa, Allo Allo pride themselves to be the world’s leading distributor of refurbished items with warehouses in China, Europe and the US.They also provide shipping for consumers worldwide.
These companies are among a few found in Africa thriving in this industry. The sector is projected to report stellar digits in the coming years since it is already being embraced as value addition in the chain to promote sustainability.
Main Photo:By Victorgrigas - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=17449580
