HP to enter refurbished market for PCs in India

India is a market of opportunities for the tech sector, as brands bring in some innovative ideas to increase business and provide the value proposition to the end user. HP is the latest brand to try and explore a unique opportunity in the Indian market with its reported entry into refurbished products, namely PCs. In recent times, India has grown more accustomed to using a smartphone, with the large chunk of this population has never used a PC before. Smartphones are comparitively cheaper than PCs, fitting right into the kind of budget Indians generally like to allocate for electronics.

Knowing the existence of such a problem, Hewlett-Packard is planning an entry into the refurbished market of India for personal computers. The aim for the brand is to push to make PC more affordable to Indians, and are planning to do so by offering refurbished products. Refurbished PCs, in HP’s case are merely second-hand computers that are repaired and resold or recycled with various components from many computers.

Currently, Amazon has a decent presence in this refurbished sector, and recently Flipkart also announced 2GUD platform for refurbished products. This makes HP a new entrant in the sector.

HP enters the refurbished PCs market

As it was highlighted by Flipkart when the news of 2GUD came to light, they expect the refurbished market in India to be worth $20 billion in the next 5-6 years. That figure goes for electronics and PCs playing a part in it. HP’s idea to enter the refurbished market is to increase the use of PCs in a country that is dominated by smartphones. India has over 350 million users of smartphones while numbers in 2017 suggest that less than 10 million PCs were sold in the country. Most of the brands are only seeing a double-digit growth, which is small in this sphere.

HP, on the other hand, wants to focus their efforts on bringing the affordability factor when it comes to PCs. The brand also recently launched mini-desktops starting at Rs. 19,990, meant for students and educational institutes.

Sumeer Chandra, MD, HP Inc in India said, “One of the big pillars we are focusing on affordability in India. We know in India we have to give the price value proposition. What we are looking at is the refurbished market in India. It is a large market, and it is largely unorganised,”

With brands like HP, Flipkart and Amazon are onto creating a market for refurbished products that, in a country like India that is price sensitive will bring the necessary balance.

Also Read: eBay Wants To Launch Export Platform For Indian Sellers

HP looks to increase share in the Indian PC segment

With the possible entry into the refurbished products market, HP aims at targetting first-time buyers, college students and customers from Tier 2 and 3 cities. Their overall objective with this venture is to increase their market share in the PC segment in India which stands at 32% as of 30th June 2018. HP believes that computers will accelerate in the future with ever-increasing broadband connectivity all across. In this process, HP will heavily rely on their extensive network of support centres in India which will conduct the repair and resell of used computers.

HP might reveal more information such as the name of the venture and other important details, although we are expecting the brand to do so in the coming days or weeks. Stay tuned as we will update on this as soon as we receive more info.

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