India's second hand goods market to cross Rs 1,15,000 cr by 2015
Updated: Jan 18, 2014 03:48:54pm
New Delhi, Jan 18 (KNN) With economy slowing down and growing consumerism, India's used goods market is likely to touch Rs 1,15,000 crore by 2015 from Rs 80,000 crore, according to a study.
"Whether consumer goods like electronics, durables or automobiles -- used cars, or the industrial machinery in the capital goods sector, the options of retrofitting and re-usage are being considered more actively than ever before," said Assocham.
When it comes to consumer items, the rise in income may not be commensurate to the rise in aspirations and the insatiable aspirations are leading them to the second-hand market to fill the gap, reveals the ASSOCHAM paper on “Growing second-hand market in India”.
"High interest rates, risk aversion and subdued investment appetite have led to this state of second hand culture," the study added.
Moreover, the rise in income is not commensurate to the rise in aspirations, leading consumers to buy products from the second-hand market to fill the gap, the study said.
At present, the country's second-hand (used goods market) is worth an estimated Rs 80,000 crore, which includes the automobile segment as well.
Nearly 45 per cent of the respondents covered in the study said buying second-hand goods from reliable platforms is worthwhile as needs have multiplied but income hasn't risen accordingly.
However, most dealers across major cities said sales of second-hand products like refrigerators, ACs and washing machines are definitely lower as compared to the past couple of years.
After automobiles, textbooks are the most sought after in the second-hand segment, constituting 25 per cent of the 'for-sale' listings on OLX, an online classified site, the study said.
For a largely floating community of young professionals in metropolitan cities unwilling to compromise on their lifestyle needs. The second-hand market offers a more convenient and financially viable means of shopping.
“Brand buy-backs, exchange schemes, online platforms and mobile marketplaces offer smart and convenient options for consumers keen to ‘trade in to trade up’, alleviate financial strains and/or quell environmental and ethical concerns,” adds the ASSOCHAM paper.
The study further pointed out that it's not just incomes that are driving second-hand markets. The product cycles are smaller and durability is coming down, which has also given a fillip to second-hand markets. Now, shorter life cycles of products, the replacement demand has gone up, and low-cost new products and second-hand markets have become substitutes.
The entire second hand market is slowly moving from a highly fragmented business to a more organised avatar, added the study. Till eight-ten years back, the second-hand market in the country was primarily driven by local specialized second-hand zones like Chor Bazaar in Mumbai, Daryaganj in New Delhi etc.
The demand for second-hand consumer durables, especially the lower priced items like mobile phones, seems to be dipping. Although the demand for textbooks, tablets, DVD, and other high-end handsets remains robust, there are some product categories that are still going great guns like second-hand text books etc, adds the paper. (KNN Bureau/SD)
"Whether consumer goods like electronics, durables or automobiles -- used cars, or the industrial machinery in the capital goods sector, the options of retrofitting and re-usage are being considered more actively than ever before," said Assocham.
When it comes to consumer items, the rise in income may not be commensurate to the rise in aspirations and the insatiable aspirations are leading them to the second-hand market to fill the gap, reveals the ASSOCHAM paper on “Growing second-hand market in India”.
"High interest rates, risk aversion and subdued investment appetite have led to this state of second hand culture," the study added.
Moreover, the rise in income is not commensurate to the rise in aspirations, leading consumers to buy products from the second-hand market to fill the gap, the study said.
At present, the country's second-hand (used goods market) is worth an estimated Rs 80,000 crore, which includes the automobile segment as well.
Nearly 45 per cent of the respondents covered in the study said buying second-hand goods from reliable platforms is worthwhile as needs have multiplied but income hasn't risen accordingly.
However, most dealers across major cities said sales of second-hand products like refrigerators, ACs and washing machines are definitely lower as compared to the past couple of years.
After automobiles, textbooks are the most sought after in the second-hand segment, constituting 25 per cent of the 'for-sale' listings on OLX, an online classified site, the study said.
For a largely floating community of young professionals in metropolitan cities unwilling to compromise on their lifestyle needs. The second-hand market offers a more convenient and financially viable means of shopping.
“Brand buy-backs, exchange schemes, online platforms and mobile marketplaces offer smart and convenient options for consumers keen to ‘trade in to trade up’, alleviate financial strains and/or quell environmental and ethical concerns,” adds the ASSOCHAM paper.
The study further pointed out that it's not just incomes that are driving second-hand markets. The product cycles are smaller and durability is coming down, which has also given a fillip to second-hand markets. Now, shorter life cycles of products, the replacement demand has gone up, and low-cost new products and second-hand markets have become substitutes.
The entire second hand market is slowly moving from a highly fragmented business to a more organised avatar, added the study. Till eight-ten years back, the second-hand market in the country was primarily driven by local specialized second-hand zones like Chor Bazaar in Mumbai, Daryaganj in New Delhi etc.
The demand for second-hand consumer durables, especially the lower priced items like mobile phones, seems to be dipping. Although the demand for textbooks, tablets, DVD, and other high-end handsets remains robust, there are some product categories that are still going great guns like second-hand text books etc, adds the paper. (KNN Bureau/SD)
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