India’s used goods market soaring as incomes shrink: Assocham

Along with the rising sale of new goods amid a growing middle class, India's used goods market too is on the rise and likely to touch Rs1,15,000 crore by 2015 from Rs80,000 crore at present, a study by the Associated Chambers of Commerce & Industry (ASSOCHAM) released today says.

"Whether it is consumer goods like electronics, durables and automobiles, or the industrial machinery in the capital goods sector, the options of retrofitting and re-usage are being considered more actively than ever before," ASSOCHAM secretary-general D S Rawat said.

"High interest rates, risk aversion and subdued investment appetite have led to this growing second hand culture," he said quoting the study.

Moreover, the rise in income is not commensurate to the rise in aspirations, leading consumers to buy products from the second-hand market to fill the gap, the study said.

Nearly 45 per cent of the respondents in the study said buying second-hand goods from reliable platforms is worthwhile as needs have multiplied but income hasn't risen accordingly.

At present, the country's second-hand or used goods market is worth an estimated Rs80,000 crore, which includes the automobile segment.

However, most dealers across major cities said sales of second-hand products like refrigerators, air conditioners and washing machines are definitely lower as compared to the past couple of years.

After automobiles, textbooks are the most sought after in the second-hand segment, constituting 25 per cent of the 'for-sale' listings on OLX, an online classified site, the study said.