Refurbished electronics go mainstream as organised retailers expand beyond value buyers

Mumbai: India’s refurbished electronics market is moving beyond bargain hunters as organised retailers expand their footprint, betting that stronger quality standards, warranties and buyback programmes will turn certified pre-owned devices into a mainstream option for premium buyers.

“The latent demand has always been there. Indian consumers have long wanted access to premium technology at better value, but for years the market lacked organised supply and trusted brands that could deliver a consistent buying experience,” said Shrey Sardana, co-founder and chief executive of Grest told ET.

The refurbished electronics market is growing at about 12% annually. While nearly 85% of the roughly $6 billion market remains unorganised, Sardana said organised players now account for 15-20% of sales, up from almost negligible levels a decade ago. He expects that share to double to 30-40% over the next five years as consumers increasingly choose certified devices backed by warranties, transparent grading and after-sales service.


“The opportunity is no longer about creating demand. It’s about building the infrastructure and trust to serve the demand that has always existed,” he said.

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The shift is also changing where demand comes from. Refurbished smartphones were once largely bought in Tier-II and Tier-III cities because of affordability. That is no longer the case. Sardana said demand is rising equally fast in metro markets, where buyers are opting for certified refurbished products because they trust the quality and buying experience. Grest now derives half of its revenue from Tier-I cities and the rest from smaller markets.

Premium smartphones remain the fastest-growing segment, led by Apple devices. Sardana said Apple accounts for more than half of India’s used smartphone market, while its share of new smartphone sales has also increased in recent years, creating a larger pipeline of devices entering the refurbished ecosystem. Demand is also growing for MacBooks and iPads as consumers look for lower-cost access to premium devices.

Supply, however, remains the biggest challenge. Sardana said trade-ins through several retail partners have risen to about 25% of new devices sold and are expected to increase to 35-40% over the next few years. The company has built sourcing partnerships with Apple Premium Resellers, large electronics chains, insurers, logistics firms and local resellers to ensure a steady flow of devices.

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“As the industry matures, the winners won’t simply be the companies that sell refurbished devices. They’ll be the ones that build the strongest supply infrastructure, because in recommerce, supply is what ultimately determines the ability to scale,” he said.

Grest, which recently opened six stores in Delhi-NCR, plans to expand to more than 20 stores by the end of this year and 200 stores over the next three years as it looks to build consumer confidence through physical retail.