InstaCash, Author at InstaCash

December 4, 2015

How today’s digital and tech savvy global youth affecting the Re-commerce Industry?

The more logical and realistic generation- the Millennial, are the talk of the town in the marketing and re-commerce industry. They have grown up in a time of rapid change, giving them a set of priorities and expectations sharply different from other generations. How can one satisfy the needs of the Millennials? To answer this question, the marketing industry has come up with youth marketing. Youth marketing describes activities to communicate to their target audience ranging from 13 to 35 years age group.

According to the United Nations, the Millennial generation accounts to 700 million in India, with its rising population to become the most populous country till 2022. It is also one of the largest Millennial population in the world. They’re the best-educated generation in independent India and most likely to drive the country to long-term prosperity.
Here are some characteristic differences of the Millennials which are the driving factors for today’s market.

“Update: ZeroWaste is now InstaCash”

1. Digital World

The Millennials have grown up with internet and smartphones around them resulting in the use of screens more than ever. From playing video games to watching TV online, Gen Y uses the digital world to literally live their lives. Social media is extensively used to communicate and to make their views known to the world. Shopping has also taken to the online platform. The Millennials shop the most online accounting to 61% as compared to other age groups. With the rise in the re-commerce industry now the Millennials not just buy but also sell stuff online.

2. Best in everything

The Millennials want the best of technology in their hands. They want to have the latest phone in the market and if there’s another phone launched which is better and cooler than theirs, they want that. They move with trends. This generation doesn’t think too much about spending money. They spend 82% of their income. With the flow of more and more new goods into their homes, the raw material for re-commerce industry keeps increasing. The Millennials, therefore, is becoming a good supplier of old goods for the re-commerce industry.

3. There are exceptions

Even though they like to spend on gadgets and other improving technologies, when it comes to accommodation options they prefer renting a house to buying one. Statistics show, 29.9% of Millennials in 2010 lived with their parents as compared to 26.7% in 2001. But they plan to buy a house sometime in future. The importance of luxury has also minimized with the Millennials. They don’t always look out for expensive goods but they are satisfied even with second hand goods if it matches their quality standards. This provides a good market for re-commerce industry.

4. Authenticity over content

It’s important for the Millennials to gain trust on a company or brand before they decide to purchase anything. With everything online, the first thing they do is check for reviews. The best places where they find reviews are blogs. 33% of the Millennials rely on blogs before they make a purchase. Once they gain trust, they are loyal customers. 60% of the Millennials are often or always loyal to brands that they currently purchase. The sooner the brand builds a relationship and a deeper connection with the Millennials, the better because they will continue to purchase from there as an adult. Also, the second hand products of known brands remain to have a good number of customers too.

The Millennials have proved to be the smart generation. Their ideas and lifestyle is sure to change the marketing industry. Also, the re-commerce industry is only to benefit from this generation. With the increase in old goods flowing into the re-commerce industry and buying second hand goods, the Millennials are bringing a change in the static society of the Gen X.

Note: This post was originally published in December 2015 and has been completely revamped and updated for accuracy and comprehensiveness.

November 24, 2015

Here’s why Old can actually be your Gold

There are two stores selling the same electronics, just that one sells second-hand electronics and the other sells new electronics. Which one would you want to shop from?

“Update: ZeroWaste is now InstaCash”

If it was a year ago, approximately 80% of the people would enter the shop that sells new electronics. But now, the number of people entering the second-hand shop has increased manifold. The trend of buying and selling old electronics is becoming this decade’s best upcoming business.But where do these second-hand appliances come from? These appliances are mostly acquired from customers or businesses selling their old appliances. They are then refurbished and brought back for sale through the second-hand market.
Here are some reasons which drive the sale of old electronics in turn helping the second-hand market to flourish in India.

1. More to choose from
Earlier when you wanted to sell or buy old electronics, there were not many choices. Either you went on eBay, OLX and or some other websites or local vendors which are not many. But now the platform for selling and buying old appliances has widened with the upcoming of many re-commerce companies. Not only the number of companies has increased but also the industry has become more organized.

2. Good quality
As I mentioned in the beginning, which store would you enter if you want to buy an appliance- a store selling new electronics or a second-hand store? With the increase of standardized electronics flowing into the second-hand market, many consumers prefer buying second-hand electronics over new electronics. And why not? We Indians look out for the best products with the most reasonable price.

3. Word of the decade- Online
If you want to buy a TV or any other appliance, the first thing you do is go online to check your options. Now you can even sell your old appliances online.We prefer to have everything on our finger tips and re-commerce companies have done that for us by taking it online. You wouldn’t want to take the pain and go to a shop just to sell your old appliance when you can sell it by just clicking your mouse.

4. Win-Win situation
A retailer selling a second-hand electronic appliance gets a better margin than the retailer selling a new electronic appliance. Therefore, it’s a win-win for both the buyers and sellers. The buyers get their electronics at a much cheaper rate from the market price and the seller gets a good margin for the same. The base of this market is primarily the consumers who sell their old appliances to re-commerce companies. The consumers also benefit by getting cash for their old electronics.

So, now that you know what to choose and why choose it, I leave you at it.

Note: This post was originally published in November 2015 and has been completely revamped and updated for accuracy and comprehensiveness.

November 12, 2015

Why re-commerce of electronics now makes utter sense in India?

In recent years, there has been a lot of talk going about re-commerce in the global market. It has captured the attention of lot of audience around the world. Let’s see what re-commerce is all about and what it has for India.

“Update: ZeroWaste is now InstaCash”

What is re-commerce?

Re-commerce or reserve commerce is the re-selling of obsolete and other undesirable goods. Vendors are accessed through electronic systems such as internet or even through physical distribution channels. The transaction is made either for cash payout or in exchange for a different product. Most re-commerce companies deal with payback pricing of goods which is easier in comparison with other options. Re-commercers usually refurbish the received goods and re-introduce the functioning products in the second-hand market. They also recycle non-useful products appropriately.

To lure customers away from online classifieds and offline vendors, re-commerce companies offer product specialization and a more scientific price for the products. In addition to that, they provide higher convenience to bring second-hand products market online.

According to estimates by industry executives, the market for second-hand products is potentially large. It is said that second-hand smartphone sales by themselves may exceed $3 billion this year. Smartphone sales in India nearly doubled to 80.6 million units in 2014, said Kiran Kumar, research manager, client devices, South Asia, at market research firm International Data Corporation Executives say, anywhere between 20% and 40% of that may be available in the second-hand market.

Origin of Re-commerce

The word re-commerce was first coined by the Chief Executive of Forrester Research, George Colony in 2005. Colony referred to re-commerce as a solution to shelf-life issues of consumer electronics because of the rapid updates in product features and functions.
This drive may seem new to many but its roots began way back in 2006 where the world saw the rise of re-commerce as an industry. With re-commerce companies budding in the major countries, a revolution had begun.

It has reached the Indian soil in much recent years. The growth of this industry is comparatively slow as compared to other countries but it has immense potential in the future. There are various companies across the world working in the re-commerce industry. A few examples are Gazelle in US, and Rebuy in Germany, Re-commerce Solutions in France with Budli being the first re-commerce company in India. ReGlobe, GreenDust, Reboot Systems India, ZeroWaste, YNew, etc are among the other re-commerce companies flourishing in India. These companies procure products not just from consumers but also directly from the company or distributers of the company.

Re-commerce in India

Re-commerce is all set to explode in India. Considering the positive trend of re-commerce emerging in India, there has been a rise in the organized re-commerce of products. However, the maximum market of consumer electronic gadgets is yet to peak. Hence, there is immense potential for re-commerce in our country.

There are certain challenges to the growth of this industry in India. Technology obsolescence and short product life can pose as a problem because the re-commerce industry relies on the consumer’s desire to buy products at an affordable price but which aren’t already obsolete. Another challenge can be the supply liquidity and logistics cost. Inflated logistics costs and assurance of consistent supply liquidity can restrict the re-commerce industry from growing in India.

In future, Re-commerce in consumer electronic devices in India is set to witness a steep growth curve. It is estimated that the industry will grow at a CAGR of more than 35% between 2012 and 2016. It will also open doors for numerous employment opportunities in the areas of Marketing, Technical Inspection, Customer Service, Logistics, etc.

The change in the consumer demographics has played its role in boosting the re-commerce industry. With the increase in brand awareness and household income, consumers are opting for branded and latest goods. Today, the average time a person takes to change his smartphone has come down from about 2 years to 6–12 months. Due to which there is an increase in the flow of used gadgets into the re-commerce market. According to a Greenpeace Report it was estimated that by 2015 two billion PCs will invade Indian homes.

Secondly, with the present trends India is set to become the next manufacturing hub and the crucial target for the rest of the world. Also with the government’s effort of ‘Make In India’, India is destined to see a rise in the manufacturing sector in the coming years. This will benefit the re-commerce industry in a way that genuine product parts can be used as raw materials for the manufacturing of other new products.

Thirdly, the performance of primary commerce is very crucial for the growth of re-commerce. The last 5 years or so have witnessed an immense growth in the sales of electronic gadgets.

About 50.5 million new gadgets were expected to have been sold in India in 2013. This translates to a market value of US$ 17.3 billion or Rs.952.5 billion. Of this, 0.72 million used smartphones were expected to have been sold in 2013, translating to US$105 million.

Therefore, with the market opening up to re-commerce the products, this industry is on a steep rise in India and is bound to take huge leaps in the coming future.

Note: This post was originally published in November 2015 and has been completely revamped and updated for accuracy and comprehensiveness.