Online classifieds platform OLX has witnessed high demand for pre-owned goods in 2020 despite the COVID-19 pandemic. A comparison of buyers and sellers’ data on the platform for 2020 versus 2019 reveals a strong growth trajectory of buyers throughout all quarters in the year over the previous one. Demand for pre-owned goods far outpaced the demand for new goods, driven primarily by consumers in non-metro markets.
OLX has recorded an increase of 35% in demand from buyers in the year 2020 over 2019. Electronics and appliances, mobile phones, accessories and furniture have enjoyed steady demand throughout the year. Demand for pre-owned goods increased further in the second half of 2020, driven by users in non-metro cities.
Demand for technology gadgets and electronics – laptops, mobiles phones, tablets and televisions – saw a spike during 2020, even during the first few months when the lockdown was announced owing to home entertainment and online education requirements. In the non-metros, each of these products saw a jump in demand by nearly 100% in Q2 2020. In the metros, however, high consumer demand was witnessed for tablets at 98%.
By Q3 of 2020, demand for pre-owned goods across categories – electronics, appliances, furniture, and mobiles – grew by nearly twice as much, a reflection of pent-up demand that couldn’t be fulfilled in Q1 and Q2, and also driven by home entertainment and online schooling needs. Growth in user demand in Q4 was similar to trends witnessed in the same period of the previous year, indicating a return to pre-COVID-19 times.
As per Retailers Association of India, sales of new consumer electronics goods went up by 2% in September and 8% in October 2020 as compared to the same period last year. Consumer electronics companies reported a recovery of consumer demand in July-September 2020, and their best sales in October 2020 with Indian households continuing to buy appliances like refrigerators, washing machines and dishwashers which helps them to automate daily chores. Sales of laptop, tablets and smartphones have been brisk too, due to work and study from home.
Seller listings were driven mostly from non-metros in the second half of the year, led by categories such as fridges, air conditioners (ACs) and laptops. These categories have grown in 2020, compared to the previous year – fridges by 45%, ACs by 67% and laptops by 17%.
During the months of July-August-September in 2020, as national and state unlock protocols came into force, there was a surge in seller listings across categories and locations, in large part due to the spill-over effect from the first half of the year.
“Despite COVID-19’s unprecedented impact, we’re proud to report that OLX continued to serve both buyers and sellers and we were able to record an all-time high quarter as well, with activity reaching pre-COVID normal by the end of the year,” said Sapna Arora, CMO, OLX India.