Thinking of adding mobile phones to your product lines? Already have a successful mobile retail operation but keen to find new ways to extend choice and add value for your customers? Then there is something you should seriously consider – selling used smartphones in your shop.
The market for pre-owned smartphones is booming, creating a brand new opportunity for retailers looking to cash in on the lucrative mobile industry. Here are four reasons why in 2019 your shop should really start stocking used devices.
It’s the fastest growing sector of the smartphone market
When people talk about growth in smartphone sales, they often refer to giant domestic markets like China and India as examples of rapid expansion. But according to analysts Counterpoint Research, growth in the global market for pre-owned refurbished smartphones is outstripping them all. Moreover, this accelerated growth contrasts with the flagging fortunes of the new device market, which over the past 18 months has seen a consistent fall in global shipments – the first time the market has contracted since smartphones first arrived in the late 2000s.
With a current value of around $20bn worldwide and a medium term CAGR of around 10%, used smartphones are where the buzz is in the mobile market right now.
It taps into changing consumer expectations
The reason the used smartphone market is growing so fast is because consumer demand for pre-owned devices has exploded. While five years ago smartphone purchases were all about the latest models and the latest technology, now consumers are looking for value. There is a growing realisation that the differences in spec from one new release to the next are no longer all that significant. Consumers now recognise that you can buy a top-of-the-range second hand mobile that performs just as well as the latest releases for a fraction of the price.
It represents better value for you and your customers
The cost savings for new smartphones are significant. For example, you can easily find a pre-owned Samsung Galaxy S8 – released in March 2017 – for less than half the current RRP for a new handset. That’s for a handset that is less than two years old, with all the same premium functionality and performance of a new device. This has great appeal to consumers, but it benefits retailers, too. While manufacturers like Samsung and Apple keep a tight grip on new device wholesale prices to benefit their own retail operations, the second hand market is much more open. Retailers can pick up pristine condition pre-owned handsets for a snip and make significant margins on them, while still offering their customers a great deal.
It increases choice
Finally, it is a simple fact that there is a much wider range of pre-owned devices available than there are brand new smartphones sourced direct from the manufacturer. The likes of Apple, Samsung and Huawei are quick to discontinue lines as they look to promote their latest releases. For a wider range of models at a broader range of price points, stocking second hand mobiles is the logical solution.