The Indian Refurbishing Industry: Transforming Buying Behaviour Post-Pandemic

“Down with the old, in with the new” – The person who came up with this saying certainly seemed to believe that new is always better than something that is old and / or obsolete. However, had they lived in the time of global warming, environmental crisis, and a global pandemic, they would have probably adopted the method of preservation through restoration.

We know that the boom in technological innovations over the past 20 years has allowed diverse consumers to enjoy the privilege of choice in virtually everything and almost all aspects of life. Be it fashion, food, pop culture, the internet, or the latest gadgets, there is always something new around the corner waiting to crop up and grab the attention of most new-age customers with busy schedules, a smart device, and a short attention span.

These days, it is certainly hard to imagine going through an entire day without using any gadget or electronic devices. In fact, it is so pervasive its brief absence can wreak havoc in the mind of its owner.

Nevertheless, it is also known that changing times and circumstances significantly influence consumer buying behaviour – and there is no time like the present to witness this phenomenon.

Consumer Buying Behaviour in 2022 – An Overview

According to a report published by IBM, the pandemic has led consumers to expect a hybrid shopping experience from brands that combines both virtual and physical presence. Over 27 per cent consumers prefer this method of shopping, with 36 per cent of them comprised of the Gen Z population.

Apart from that, the buying behaviour of consumers will mostly be value-driven, not just in terms of money but morals. The report further suggests that 2022 will be dominated by ‘purpose-driven consumers’, accounting for 44 per cent of the market segment. With a growing emphasis on ethical business practices, consumers are increasingly choosing brands that align with their social values.

What do Indian Consumers Seek? Long-term Value over Short-term Variable

The Covid-19 pandemic has greatly impacted and influenced the buying behaviour of consumers in India. Their experience over the past couple of years has been so extreme that what they choose to consume now is driven by an innate need to prioritise worth over waste.

As a matter of fact, the refurbishing industry in India is currently witnessing massive growth driven by consumers who are choosing to make more responsible buying decisions for themselves and for their families. Some market players are even building a tech-led circular ‘C2B2C’ ecosystem to cycle each product through multiple user journeys in the consumer electronics segment.

Let’s check out the various factors that are pushing the Indian consumer to buy refurbished goods.

• Post-pandemic Perspective – As we have previously highlighted in this article, the Coronavirus pandemic has immensely influenced the way Indian consumers purchase goods. It has driven them to look for viable options that fulfil their requirements and at the same time, get the most value out of their purchase decision. They also get to choose from a range of products that they would not have considered buying if it were brand new or over-budget.

• Increase in work / education from home – As people continue to adjust their daily lives around the ‘new normal’ scenario, with work from home and online education shaping their routine, meeting the technical demands for such a setup has become extremely essential. It eventually led to an increasing demand for refurbished electronics for those who saw it as a viable option for creating an at-home school / college or work setting within their budget.

• Easy digital access – The push to go digital became stronger over the past two years as contactless payments became the preferred mode of transaction in a bid to limit person to person contact as much as possible. Online shopping gained steam as more people found it easier to explore or surf through products and services that best suit them. It also allowed some organisations to strategically focus on building a sustainable omnichannel business during the pandemic to help customers navigate and thrive during such unprecedented times.

• Environmental Awareness – The world is gradually becoming ecologically conscious, and most urban consumers these days understand that they too have a social responsibility to do their part for protecting the environment. It is also one of the most important reasons why refurbished products are becoming increasingly popular because it ensures that electronic waste is reduced. As a result, its impact on the environment is significantly less and causes less pollution.

• Focus on ’Made in India’ Products and services – Over the past couple of years, India has emerged as a manufacturing hub that supports homegrown, indigenous products and services. Furthermore, the ‘Made in India’ initiative has made it possible for native businesses to reach more customers across the country. Apart from that, fall in inventory imported from neighbouring countries allowed more Indian businesses to thrive and fill the gap with ‘Made in India’ products. Customers, on their part, were driven by a sense of national pride in the products they use, which contributed to the growth of refurbished products.

Conclusion

The Indian refurbishing industry is certainly witnessing massive growth and will continue to map a steady growth trajectory as a sustainable alternative to conventionally manufactured consumer electronic goods. Furthermore, growing awareness among consumers and advocacy around using ‘green’ products can contribute in leaving behind a clean world that future generations can enjoy.

(The author is Dipanjan Purkayastha(CEO & Co-founder, HyperXchange) and the views expressed in this article are his own)

Read more at: https://cxotoday.com/corner-office/design-thinking-a-non-linear-approach-to-solving-ux-problems/