Cashify eyes retail expansion in tier-2 cities


New Delhi: Cashify is expanding its retail presence in India eyeing tier-2 markets. The refurbished electronics seller is planning to take its total number of stores to 250 by March 2023 from the current 170. By the end of 2022, Cashify will have retail stores in over 100 Indian cities.

The Gurugram-based company said that its retail stores across India are seeing 2 lakh visitors every month for buying refurbished phones and accessories, selling old phones, and seeking phone repair services. Since March, the company has seen 70% growth in revenue.

“In the last couple of years, we have witnessed multifold growth in terms of expansion, consumer reach, and marketing,” said Alok Shukla, vice president of retail at Cashify.

Shukla pointed out that Cashify has seen “exceptional response” in tier 1, 2, and 3 cities. Currently, 40% of the company’s business is driven through online channels while 60% comes from offline retail stores. “We will soon convert our stores into exclusive experience centers where consumers can select their phones through the company’s online portal and test their chosen device in any offline store in the chain,” added Shukla.

Cashify is also planning to expand its product portfolio in its retail stores to cater to more consumers. After adding wearables, the company is working on selling refurbished laptops for individual buyers looking for affordable laptops to support hybrid work. Laptops will be available in stores from March.

Unlike the first-hand smartphone market, which is going through a demand slump due to the economic downturn, the refurbished smartphone market has been growing. According to RedSeer Consulting’s data, 55 million refurbished phones were sold in India last year. In 2022, it is expected to grow to around 65 million.

According to International Data Corporation (IDC) data, shipment of the first-hand smartphone market in the September quarter was the lowest third-quarter shipment since 2019. The rising average selling price (ASP) of smartphones is also driving many buyers to refurbished sellers.

The ASP of new smartphones has grown 15% YoY to reach $226 (approx. 18,441) in the September quarter, as per IDC data. In comparison, the ASP of refurbished smartphones is around 12,000, according to Counterpoint analysts.

Catch all the Corporate news and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.



Source link