CDIT Jul, 05 2013

Re-New gadgets, reap profits

The surplus electronics industry is worth about Rs 6,000-12,000cr in India. With growth rate pegged at about 15 per cent per annum and not much competition at the moment, the industry is wide open for entrants. Read to know how you can avail this lucrativ

By Parina Sood, TFW Bureau
Senior Sub-Editor
Re-New gadgets, reap profits

 The market for surplus goods, end of life, seconds and carton damaged products is in nascent stage in the country. With not many organised players present in the segment currently, most of the end consumers are oblivious to its existence. And it was this need and desire to create awareness among the consumers and build an organised market that led to the emergence of brands like GOBOL and YNew. Within a short span they have been able to provide a platform for re-commerce and generate a buzz around such goods.

“We strongly believe that if we create a platform where customer experience is same as buying new goods, there will be a strong acceptability from the consumers, and brands will get an exclusive organised channel. It is a win-win for both brands and consumers. While brands can sell such goods in a transparent manner, consumers can also have access to such products at great prices,” says Alok Mathur, Director and CEO, GOBOL.


The basic idea behind these re-commerce brands is to provide a safe place for the buyers to purchase branded and certified second hand products with service warranty and provide a hassle-free platform for the sellers to sell their gadgets at best prices.

These second hand products are the ones that are manufactured in surplus, with may be some scratches, small packing damages but working fine. They are not inferior or used. Moreover, consumers get the same warranty for such products as they would get for new products. Certified by manufacturers, they are fit to be sold. 


According to the industry players, the growing Indian middle class and better disposal income are the growth drivers of this sector. The craze of owning a renowned brand is also on a rise. Given these factors, they envision an even brighter future going further.

Predicting that more than 25 million units of TV screens may enter the secondary market by 2015-16, Dashradh Ram Nutakki, Founder and MD, YNew, says:

“Buying and selling of used products is a proven business model as shown by the car industry. Our research shows that electronics will be the next big industry in this sector, given the penetration in the Indian consumer space. Our research shows that smart phones, computers and televisions will do very well in this market. These gadgets are replaced and/or upgraded faster than any other electronics and the growing Indian middle class would love to grab these products, for a reasonable price.”


While the industry looks quite attractive, there are challenges to be aware of. Since the industry is still not completely organised, there is lack of regulatory framework. Industry players opine that non-availability of skilled/trained resources also poses a challenge. The market is highly fragmented and also price sensitive.

“Absence of business ecosystem and difficulty in finding business automation solutions also needs to be taken care of,” says Dashradh Ram Nutakki of YNew.

Alok Mathur of GOBOL adds: “The challenge for the franchisees is to be able to retain the customers and keep updating them about the new products that have come in. Servicing the clients regularly and being in touch with them is the only way to win their loyalty.”


Having observed and researched on the Indian consumer behaviour, industry players have realised that the Indian customer is more convinced about a product by touching and feeling it, rather than just looking at it online. Hence there’s a need for brick-and-mortar stores.

For the same reason, GOBOL started franchising earlier this year, while YNew will begin franchising by October 2013 and has plans to roll out 35-40 franchise stores by 2015.

GOBOL owns a flagship store and an ecommerce website. With this store breaking even in just two months of its operations and the brand receiving encouraging response from customers, manufacturers and dealers, GOBOL decided to expand its footprint in the country. Looking for suitable franchisees, the brand promises all the support to its associates.

“Our franchise is an all-weather business opportunity in the fast growing consumer electronics space, which helps the franchisee earn healthy returns while the consumers save money,” says Mathur of GOBOL.

Elaborating further on the support provided to the franchisees, Mathur says: “Franchisees may face issues with regard to setting up consumer electronics store. We’ll assist them at every juncture, from site selection to legal compliance assistance to staff selection and monitoring the growth of the business. Marketing support will also be provided. We have a round the clock online support cell as well, which is dedicated to the franchisees.”



Rs. 20 lakh


600-1000 sq ft

Return on Investment

50% approximately


6 months

Expansion plans

After establishing in Delhi/NCR, top 100 cities within the radius of 250 km from Delhi are on the target.

Related: Reinforcing the value of offline stores

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