HP Inc is exploring entry into the refurbished market for
personal computers in India, as part of its push to make affordable products.
One of the big pillars hp are focusing on affordability in India.It’s importarnt to give the price value proposition to customer. Hp is looking at the refurbished market in India. It is a large market and it is largely unorganized, Refurbished market will give HP an entry into a price sensitive segment of the population who is familiar with a Smartphone but has never used a computer before. They will rely on its extensive network on support centres in India to repair and resell used computers.
“We are looking at it and seeing if there is a
way we can participate in the market, either by providing our own refurbished
product or come up with an alternate product that would compete with the
refurbished product,” said Sumeer Chandra, MD, HP Inc in India.
While India has seen a surge in smartphone adoption with over 350 million users, PC adoption has still be in low. In 2017, less than a ten million PCs were sold in the country and companies are seeing double digit growth. Yet, it is still small.
HP wants to target first-time buyers such as college students, customers from Tier 2 and 3 cities. It feels adoption of computers will accelerate in the future with broadband connectivity.
“It is a sizeable market. We just started to look at it. For informal players there are decent margins. It is an important market because it is serving a market we are not able to serve – providing products at a lower cost,” he said.
Flipkart, which launched a separate site to sell refurbished electronics including computers, the market is expected to be a $20 billion market in 5-6 years.