Used goods worth Rs 78,000 crore are stocked away in Indian homes, according to a survey commissioned by online classifieds firm OLX.
The third edition of OLX CRUST (consumer research on used-goods and selling trends) Survey showed that India had a 90% stocking incidence rate in 2015-16, up 3% from the previous year. The selling propensity of goods was 49%, up 4% from the previous year.
The consumer-to-consumer (C2C) marketplace survey, which was conducted by IMRB across 16 cities, indicated that ‘brown money’ or value locked in unused goods gathering dust in homes could fund the government’s ‘Swachh Bharat Abhiyan’ eight times over.
The survey indicated that more and more Indians now wait for ecommerce sales to compare prices of new items during the sale with that of used goods and that the value realised through online selling is on an average 25% higher than the one realized through offline selling, and 47% higher than that realised through exchange across multiple categories.
Households in the North are driving the sell trend, while selling is growing at the fastest pace in non-metros. Desire to upgrade is the primary reason for selling used goods – 68% of respondents said, 27% respondents cited ‘boredom’ with using products as the main reason for selling, something particularly seen in the mobile phones category.
The survey indicated that 1 in 6 buyers take new product value in ecommerce sales as a reference to assess price they should pay for used goods. This hints at the enterprising and value-driven nature of Indian consumers.