Refurbished electronics brand HyperXchange (HX) is expecting ten times growth in business during the current financial year, backed by a steady rise in demand for refurbished electronics products, primarily mobile phones and laptops, and an expansion of its distribution footprint.
According to Dipanjan Purkayastha, CEO of HyperXchange, the rise in semiconductor prices and the overall cost-push following the recent Russia-Ukraine crisis has led to a surge in demand for refurbished electronics products.
HX is a premium electronics marketplace with traditional and digital channels that sources, services, distributes, and markets ‘as good, as new’ electronics items for a variety of consumer categories. Their items are offered in new or like-new condition at an economical cos,t and they come with a 12-month replacement warranty.
“Post Covid, there has been a surge in demand for mobile phones and laptops due to work from home. Since the slowdown hit people’s income levels, an increasingly large number of people have been looking for quality products at slightly affordable prices pushing the demand for refurbished products,” Purkayastha told BusinessLine.
The average price difference between the new and refurbished product is around 25-35 per cent, depending on the age of the product, model, and brand, among others.
The market for refurbished electronics in India is estimated to be close to $10 billion and has been growing at around 80 per cent on a year-on-year basis in the last two-to-three years. Globally, the market is estimated to be around $80 billion due to higher awareness and better climate consciousness.
“India is more of an evolving market and is largely driven by affordability factor whereas globally people prefer to buy such products out of their sense of concern for climate apart from the price consideration,” he said.
HX, which currently has 350 retail stores across the country, is looking to take up its store count to 3,500 by this financial year. Most of its stores are currently in the suburban areas in tier-I and tier-II towns. It is looking at opening more outlets in tier-II and tier-III towns moving forward.
“The smaller towns and markets are seeing a rise in disposable income and aspiration among people to own branded products. This is likely to drive demand for refurbished products in these towns and cities,” he said.
The company recently announced European expansion by signing strategic deals with the UK and Netherlands governments. It announced a £3 million investment to establish business operations in England and Scotland. HX is also working closely with the Netherlands government to start procurement and processing operations in its renowned ‘Innovation Quarter’. The Hindu BusinessLine