As a world leader in online classifieds, OLX Group offers a platform that enables people to efficiently and easily purchase, sell, or trade a wide variety of used goods and services. In an effort to streamline transactions in local communities, OLX Group uses cutting-edge technology to make item listings as simple as possible.
OLX, which was founded in 2006 by Fabrice Grinda and Alec Oxenford, is a global company that facilitates millions of transactions between buyers and sellers via its website and mobile application. Known for its easy-to-use interface and wide reach, Olx Group upholds its objective of establishing a trustworthy and easily accessible marketplace where consumers can easily get rid of things they no longer need or get reasonably priced items that meet their needs.
The core of OLX Group’s business strategy is offering a strong digital platform that serves a range of market niches. In contrast to conventional classified services that mostly rely on physical posts, OLX incorporates cutting-edge technological solutions to improve transaction security and user experience. In order to provide individualised suggestions and identify possibly fraudulent activity, this novel solution makes heavy use of data analytics, machine learning, and artificial intelligence. This ensures that the marketplace is safe and efficient for its customers. In order to increase its market penetration and user engagement, OLX Group also places a high priority on mobile access, acknowledging the growing reliance on mobile devices for online transactions.
How OLX Makes Money?
OLX Group’s revenue model is complex, utilising a variety of revenue sources to sustain and grow the business.
Generating Revenue Through Premium Listing Fees: Premium listing fees, which users pay to advertise their ads for increased exposure and quicker transactions, are how OLX makes money.
Generating Revenue Through Advertising Fees: In order to monetise its substantial traffic, OLX also makes money by providing advertising services to companies wishing to target particular demographics within its large user base.
Generating Revenue Through Transactional Fees: Transactional fees for value-added services, like safe payment methods and shipping alternatives, are another important part of the income stream. Through income diversification and ongoing product improvement, Olx Group guarantees a long-term business operation that adjusts to consumer tastes and market demands.
USP of OLX
OLX’s primary USP, its mobile-first strategy, greatly increased its market penetration. More than 75% of OLX consumers access the marketplace via the mobile app as of 2024, highlighting how important mobile technology is to their strategy.
SWOT Analysis of OLX
SWOT Analysis of OLX
Strengths
More than 100 nations are home to OLX. This is one of the brand’s great advantages. The platform would see a large number of users if it had a strong presence in numerous nations.
With around 11 billion page visits, OLX has a strong brand image. Additionally, it has roughly 25 million listings, 8.5 million transactions, and 200 million active users per month.
Naspers provides OLX strong support. Naspers has extensive expertise working with several eCommerce giants.
Weaknesses
Due to its reliance on technology, OLX is unable to attract potential clients who are not internet users.
There is a potential that the quality would suffer because a lot of customers and vendors interact online and have different conversations there.
There is a risk that OLX might also engage in fraudulent conduct because it is a completely online platform where many people connect and discuss their sales and purchases.
Opportunities
OLX believes that diversifying its product listing will increase its opportunities. It might contain a lot of product subcategories, which would give buyers and sellers more chances to go through their needs.
Establishing an offline channel will allow OLX to expand its advertising reach and raise platform brand recognition.
By posting employment openings, this online portal can expand its offerings. This would increase its business opportunities and boost the number of users.
Threats
Quickr is one of the numerous competitors that OLX encounters at a similar domain, which poses a serious danger to the brand.
Second-hand goods are sold at a discount at many physical establishments. Additionally, this poses a risk to the brand. In order to view and feel the thing before making a purchase, people would rather visit an offline store.
Conclusion
By offering a dependable and trustworthy platform for purchasing and selling goods and services, OLX has grown to become a dominant force in the online marketplace sector. OLX makes money through ads, Google Custom Search Engine, Sponsored Links, and Sponsored Listings. Its business strategy is centred on boosting user traffic and listing counts. Additionally, the business has introduced cutting-edge services, including the option for sellers to pay to have their listings featured, which increases revenue for both OLX and the seller. The success of OLX is evidence of the value of flexibility and creativity in the modern, fast-paced digital environment, and its sustained expansion is something to keep an eye on in the years to come.
FAQs
What is OLX ?
OLX is a global online classifieds platform founded in 2006 that allows users to buy, sell, or trade second-hand goods and services easily.
Who founded OLX and when?
OLX was founded in 2006 by Fabrice Grinda and Alec Oxenford.
What is the main revenue model of OLX?
OLX earns through multiple streams: premium listing fees, advertising services for businesses, and transactional fees for value-added services like secure payment and shipping.
Back then when people had not that great access to the internet, these reseller apps were not that productive at all. People had no idea about these apps and nothing productive was happening with them. But with the revolution of social media and the internet, reseller apps have come a long way beyond imagination. In today’s time, reseller apps are too popular and proven to be very successful, which is why they don’t seem to be fading away sooner.
In these reseller apps, people have the access to both buy and sell goods without any extra cost. The best thing that stands out with these apps is, that here you don’t need to find any proper marketplace to buy or sell your product. Hence, this trend is excelling hugely. However, depending on how many reseller apps may be available in the market, it is essential to choose a beneficiary one. So, here’s the list of the best reselling apps in India:
A reseller is an individual or a company that sells goods or services to earn profit. A reseller makes a massive profit by buying and selling a large number of goods. The value addition in the resale chain will occur from the manufacturer to the trader and finally to the consumer, with each link in the chain benefiting from the resale of goods. Selling clothes, electronics, books, automobile and others directly to the customer are few examples of reselling.
What are Reseller Apps?
A reseller apps is an online marketplaces where users can sell their goods at a economic price. It also give buyers a chance to negotiate that prices so that both the buyers and sellers can agree on an acceptable price in which both are in a win-win situation.
On the Reseller Apps, the seller does not require to reveal any personal information as these apps are secure portals. Meesho, Amazon Seller MarketPlace, OLX, Quikr, GlowRoad are some examples of Reseller apps.
Top 20 Best Reseller Apps in India
There are many Reseller Apps in market but the best reseller app in india which will surely give you profit in both selling and buying are dicuseed below. Reseller apps could a good souce of profit as it doesnot involves the middle man and it directly sell goods to the customer.
1. Meesho
Rating
4.4/5
Category
Apparel, shoes, jewellery, bags
Meesho App
Counted among one of the best reselling apps in India, Meesho was established by two IIT Delhi graduates in the year 2015. Meesho was founded by Vidit Aatrey and Sanjeev Barnwal.
Features of Meesho App:
Here one can become a reseller without much difficulty.
One can choose a product from the collection and can suggest it to his group of people and if they like and buy it, he/she would get a commission for that.
It is not limited only to this, but there are also a lot of money-making formulas present in this app.
2. GlowRoad
Rating
4.5/5
Category
Apparel
GlowRoad App
GlowRoad is a free online reselling app in India similar to Meesho consisting of almost 1 lakh high-quality products and over 100 categories for the wholesale market. It comprises sellers like boutique owners, college students, beauticians, etc.
Features of GlowRoad App:
Here one can get everything from home décor items to beauty products to utensils and furniture and much more.
The app has more than 10 million downloads.
3. Shop 101
Rating
4.4/5
Category
Handicrafts, women accessories, home decor, books
Shop 101 App
Shop 101 is India’s first original reselling site. They also provide home-based services and it all can be afforded within minutes of it.
Features of Shop 101 App:
The uniqueness of the app is that it gives a special feature of multilingual options.
They also facilitate a lot of interesting cashback offers.
One can get almost every product from here like clothing, electronics, personal care, etc.
4. eBay
Rating
4.1/5
Category
Electronics, Apparel, shoes, jewelry, bags
eBay App
eBay is a multinational company founded in 1995. It was founded by Pierre Omidyar. He launched the company on September 3, 1995. The headquarters of eBay is located in San Jones.
Features of eBay App:
They have more than 10 million downloads and have a great rating of 4.6 stars.
It is one of the oldest reselling websites in the world.
One can buy and sell electronics, apparel, cars, and whatnot on this site.
5. Mercari
Rating
4.7/5
Category
Electronics, Apparel, shoes, jewellery, bags
Mercari App
Mercari was first launched in Japan in the year 2014. One can sell both new and used items on this site. It is a market app where you can sell both used and new stuff
Features of Mercari App:
It specializes in fast buying and selling.
It provides free shipping.
The service is straightforward and flexible.
6. Cartlay
Rating
4.1/5
Category
Apparel, shoes, watches, bags
Cartlay App
Cartlay was founded on April 14, 2014, and was a massive success. It notifies every important and new collection once you install this app on your phone.
The quick shipping facility allows getting your product within 2 days.
One can easily share the personal collection with his or her family and friends.
7. ZyMi
Rating
4.4/5
Category
Apparel, Watches, Makeup, Jewellery
Zymi App
Provided with the facility of creating your online store easily, Zymi is one of the most famous online reselling apps and is similar to Meesho. It is authentic and user-friendly.
Features of Zymi App:
One can find thousands of amazing clothes and can easily sell them.
You can get the latest and trending fashion products.
When someone buys clothes from the collection, you will get a commission from them.
Clothing, gardening equipment, furniture, home appliances
OfferUp App
With more than 1 crore downloads and some great reviews, OfferUp is a famous reselling app and also a reliable one. One can also link one’s social media account with the OfferUp application and can enjoy shopping.
Features of OfferUp App:
Here, one can easily get an option for the counteroffer.
You can make a filtered wishlist of all your favourites.
9. 5miles
Rating
4.3/5
Category
Cars, auto parts, electronics, furniture
5miles App
The most convenient and straightforward app for reselling is 5miles. It facilitates reselling of old products, mostly for urban people. But the app does not work great in rural areas.
Features of 5miles App:
Customer support is available for everyone at any time.
The users are not fake as they have to verify their identity.
In terms of reliability and authenticity, HiBoss gives the best experience for the users. It sells products at factory prices and provides free shipping.
Features of HiBoss App:
Cash on delivery is easily available at any address.
It sells items without any fuss and just can be sold by scanning and getting listed.
11. Shopmatic
Rating
4/5
Category
Apparel, jewellery, pet food and products, bags, cosmetics
Shopmatic App
With Shopmatic reselling app, One can create a friendly eCommerce website within a couple of minutes, without any cost. You can also get a facility of getting 3% of the exchange esteem after completing a year in this app.
The products are available at an affordable price and with better service.
12. Shopee
Rating
3.5/5
Category
Apparel, accessories, books, footwear, home applainces
Shopee App
Dedicated to women, Shopee is one of the best reseller apps for women’s products. It contains products like Kurtis, jewellery, home décor, and whatnot.
Features of the Shopee App:
The products are available at an affordable rate and have a simple return policy.
It contains an easy formality to start the business for newcomers.
13. ResellMe
Rating
4.2/5
Category
Apparel, furniture, home decor, electronics
ResellMe App
With more than 100 registered brands, ResellMe is believed to be one of the best reselling apps for clothes. It provides quite good quality products and provides good service too.
Features of the ResellMe App:
The interface of this application is very user-friendly and easily accessible.
The login process for this app is easy.
14. OLX India
Rating
4.4/5
Category
New and used automobiles, furniture, electronics, footwear
OLX App
OLX was founded in 2006. It is headquartered in the Netherlands. It is one of the best reseller apps all around the globe. OLX has gained a lot of popularity over the years.
Features of OLX App:
The app facilitates an in-app chat feature, which is very rare.
One can get the product from any part of India.
15. Quikr
Rating
4.1/5.0
Category
Mobile phones, furniture, home decor, home appliances, toys
Quikr App
Quikr was founded in 2008 and has been successful since then. The company’s headquarters is situated in Bangalore and has spread over 1000 cities.
Features of Quikr App:
Not only buying and selling but one can also find part-time or full-time jobs here.
One can get second-hand products at a very reasonable rate.
16. Amazon Seller MarketPlace
Rating
4.3/5
Category
Apparel, electronics, home appliances, video games, books
Amazon Seller App
One of the most popular reselling websites in India is the Amazon marketplace founded by Jeff Bezos. It has great customer support all over the world. The app has a 4.3-star rating and has more than 50 million downloads.
Features of Amazon marketplace:
Free delivery is available on specific products.
One can purchase anything from any location and can also go for cash on delivery.
17. Carousell
Rating
3.8/5
Category
Electronics, fashion, used car, services, furniture
Carousell App
Carousell was first initiated in Singapore city and then it travelled to the United States. This website emerged globally and enables people to buy and sell any product.
Features of Carousell App:
One can use their social media account to create a profile here.
Poshmark reselling app is too specific and famous for selling clothing items. One can get a free pre-paid shipping label, once you finalize the sale. You can also upload pictures that you want to sell.
Features of Poshmark App:
You can get quick delivery.
It contains more than 5000 brands of different sizes.
Decluttr is an application that specializes in allowing to sell of those products only which are in good condition. The buyer can easily contact the seller and they can decide the pricing for the product.
Features of Decluttr App:
Here you can scan barcodes to sell and buy.
One can view and manage items for which you would have placed an order.
20. Elanic
Rating
3.4/5
Category
New and used apparel
Elanic is one of the best reseller apps in India, where one can sell used and unused items without any difficulty. This app is reviewed as a very user-friendly one and with a few clicks, one can easily buy or sell commodities without any trouble.
Features of Elanic App:
One can sell without revealing his or her identity or number.
It provides a high range of product listings.
Conclusion
This is the list of top online reselling apps in India. One can easily have a look and get a perfect knowledge of the apps and can decide where to rely upon them. All these apps are extremely helpful for those looking forward to starting a small business.
These reselling apps are even available to the common man. Anyone can start their online business on these platforms. Such apps must be encouraged by people and more should be done for their development.
FAQs
Which app is best for resellers?
The best reseller apps in India are:
Meesho
GlowRoad
Shop 101
eBay
Mercari
Cartlay
ZyMi
OfferUp
5miles
Hi boss
Shopmatic
Shopee
ResellMe
OLX India
Quikr
Amazon Seller MarketPlace
Carousell
Poshmark
Decluttr
Elanic
Which app is similar to Meesho?
GlowRoad, Shop101, Shopee, and Carousell are some of the similar apps to Meesho.
What is reselling app?
A reselling app is an app where you can sell your products and earn profit with zero investment required.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by OLX.
The internet is a virtual platform where every industry has got a business concept of its own! Earlier concepts were not as easy as it is today. Anyway, now the normal trade and commerce evolved and came to be known as e-commerce. Webshops are the usual locations to buy and sell commodities online.
OLX is a classified marketplace. Over here connecting with people such as both buyers and sellers are very easy. Finding clients is completely free on this platform and one can use OLX from a phone and laptop respectively. When individuals are buying anything from OLX they exactly do not buy from OLX but do buy from a seller of OLX. Read the OLX Success Story below!
OLX is a marketplace where both buying and selling of products such as furniture, electronic gadgets, cars, accessories, bikes and household items goes on! It is a space that is currently serving more than 300 million people each passing month.
OLX – Founders and Team
Alec Oxenford and Fabrice Grinda are the Co-founders of OLX.
Alec Oxenford
Alec Oxenford – Co-Founder of OLX
Alec Oxenford is an entrepreneur! He was the co-founder and the CEO of the company OLX and there he served for a time of around nine long years. Presently he is the co-founder of Alpha Capital Acquisition Company. He completed his MBA from Harvard Business School.
Fabrice Grinda
Fabrice Grinda – Co-Founder of OLX
Fabrice Grinda was the co-founder and the CEO of the company OLX! Presently he is the founding partner of FJ Labs where he has been serving for the past nine years. He fulfilled his education at Princeton University.
OLX – Startup Story
OLX was founded in 2006 by Fabrice Grinda and Alec Oxenford. The founders thought about bringing an online platform into existence with the help of which consumers will be able to sell unwanted commodities at no cost to themselves!
Fabrice took into notice in person that the larger online marketplaces such as eBay and many more had substantial operations all across the advanced marketplaces but did show a bit of attention in establishing a presence in the rising markets mainly across Latin America, Eastern Europe, and South-East Asia.
Fabric and Alec thereafter developed the OLX platform to cater specifically to the consumers in all the rising marketplaces.
The business model of OLX is based to provide a space for the consumers to buy and sell products. According to the reports, there are more than 300 million active users of the renowned space.
Around 65% of the users of OLX are mostly younger male members. The rest are the middle-aged ones who generate traffic to the site. OLX serves more than 45 countries in the world and its largest markets are present in India and Poland.
OLX – Revenue Model
OLX Revenue
OLX generates its revenue with the help of the growth and system of an online and mobile classified ads space!
OLX major revenue streams are:
Google Adsense, with the Company regulating the traditional display and banner advertisements based on the searches made by each user.
Sponsored and premium listings, where users can stimulate their product listings by paying a little amount fee, or maybe later all the businesses can pay to have their listings occur at the top of the results for particular searches.
OLX does not publish its financial results on its website!
OLX – Growth
OLXhas seen incredible growth in the country of India. The website is really simple to drive through and also it focuses especially on mobile and proper advertising. Their different transmission strategy surely ensures total brand appeal across the board.
Olx can be used by anyone and everyone regardless of their social, cultural and geographical significance!
OLX – Online and Social Media Presence
OLX has got its social profiles on Facebook, Instagram, Twitter, and its professional profile on LinkedIn. Apart from traditional marketing, OLX has switched to market its services in the digital space as well. The company is quite a renowned brand and also it has got its name on various web portals.
The top competitors of the company OLX are Quikr, Clickindia, and Sulekha.
Quikr
Quikr is one of the top competitors of OLX. The company was founded in 2008 and is headquartered in Mumbai, Maharashtra, India. Quikr competes in the Online Marketplace Sector.
Clickindia
Clickindia is also one of the top competitors of Quikr. The company was founded in 2007 and is headquartered in Noida, Uttar Pradesh, India. Clickindia competes in the Real Estate Agencies Sector.
Sulekha
Sulekha is perceived as one of the top competitors of OLX. The company was founded in 2006 and is headquartered in Chennai, Tamil Nadu. Sulekha competes in the Business Information Research Sector.
OLX – Future Plans
The plan is to grow the user base, enhance the prevailing categories, grow the new business lines and strengthen the core theme of customer-centricity across the entire OLX goods portfolio! The current brand modification aims to appeal to the global millennials.
FAQs
Who is the founder of OLX?
Alec Oxenford and Fabrice Grinda are the co-founders of OLX.
When was OLX founded?
OLX was founded in 2006 in Amsterdam, The Netherlands.
What is the revenue of OLX?
OLX India’s operating revenue in FY21 was recorded to be INR 228.63 crore.
Started by Fabrice and Alec. The story of OLX began as these entrepreneurs observed that apps like eBay or Craigslist had no interest in entering the market segment of buying and selling products and services. They took the opportunity and launched OLX as a marketplace. And bang, OLX took a step into the world of developing countries. OLX acquired the 7th position on the Google Play Store in the category of top free shopping with 30 million downloads. A rating of 4.2 stars and is labelled as one of the best local shopping apps in India.
The top categories in which the app allows its consumers to deal are: MobilesCars and bikesElectronicsReal EstatesFashion
Consumers can buy and sell easily through a smartphone.
Discover deals and buy from verified sellers in your neighbourhood.
Safely get what you want from home and have conversations with certified sellers, negotiate with them.
Manage your chats easily.
Get recommendations based on your interest.
Manage and edit ads on the go. The app is designed for fun, simple, intuitive, and a great shopping experience. It promises a cutting-edge experience that effortlessly helps you find what you need and sell something new in just seconds.
Apart from having apps and a website. OLX has its presence on social media, which includes accounts on Twitter, Instagram, and Facebook.
Marketing Strategy of OLX
Advantage of a wider reach across the globe
OLX has a global footprint with 322 million monthly active users (MAUs) using the trading platform. Not only this, the team of OLX itself that includes 11,000+ members are spread over 81 nationalities (countries) making it diverse and having a wide reach; the organization ranks 3rd highest among the global companies in digital footprints.
Partnerships
Associated with brands like Property 24, Storia, Otomoto, Obidos and more. Its investors include Prosus Naspers, which is also its parent company. DN Capital, Founders Fund, The Perkins and more. OLX also has venture capital firms.
The Smart Cost-cutting Infrastructure
With the consumer market segment that includes people who are interested in buying and selling goods and services, OLX facilities as the marketplace for the same purpose, especially for people outside the United States.
Enabling customers to strike deals directly between them. Offline also cuts the cost of getting involved for different customer segments for its infrastructure. It is an online platform that makes the process for people involved hassle-free.
Using digital platforms and other channels
There is a mix of media including Television ads, blogs that are targeted, having a presence on various social media platforms and digital platforms with its website which makes OLX easily stands out making people aware of its presence along with having its app available on the Play Store and App Store highlighting the fact that it is easily accessible to its users.
The company has also kept up with change and swiftly moved onto marketing on digital platforms; when the internet started ruling the world, the company gradually adapted its budget from offline marketing to digital platforms.
They have educated the people on how to use the app addressing the concerns of both the buyers and the sellers with various creative campaigns when entering the new markets, while some of their campaigns like “O Womaniya” and the” 6 Months Break-Up Challenge” relied on consumer insights that the company smartly used to its benefit making them successful.
Giving a reason to the “What’s in it for me?”
When the consumer asks the most basic question of “What’s in it for me?” OLX gives them infinite reasons to use it. Being able to filter and choose from across categories ranging from smartphones to tool kits for the user-based application and the website with constantly updating the design and adding useful features for the smooth navigation and enhancing the users’ experience.
An additional benefit is with the knowledge that OLX has gained as exploring the cultures around the world is resolving the stigma that is usually attached to buying “second hand” goods.
Driving Click-through rate (CTR)
OLX positions itself as savvy and experimenting a lot with the new technology to develop visuals and the interface. Which brings new features and tools that enhance the user experience which reflects the dynamic, confidence and bursting with energy, expressing all the optimism and attitude that’s true to OLX.
OLX leveraged its users according to a new case study which drove their metrics up to 300% CTR (Click-through rate) with the new “saving a search” feature allowing its users to be notified when a new ad goes live that matches their search.
The Social and Environmental Impact
OLX Group is driving the change. It is carbon neutral since the year 2021, creating a positive impact on the environment. The company is also giving back to its communities in India and Brazil, clearly creating a good image for the organization also showing responsibility as a leader.
OLX Pledge
Covid-19 Marketing Strategy of OLX
Never a marketing strategy that has been made to suit all situations, as human dynamics are always changing.
Tailoring a new tone
The business observed its consumers silently to understand the changes and the situation. The brand strategically devised a tone that was fit for the ongoing situation during the lockdown. That is reassuring, empathetic, and humorous.
Giving a message of positivity
Reminding and encouraging consumers that they can still find ways to do the most even while being at home. Inside the four walls. During the third and the fourth stages of unlocking, the brand also came forward, being socially responsible, lending a helping hand to come to terms with helping people in the stage of acceptance and decluttering.
Built a campaign around decluttering
Acceptance and decluttering. Coming to terms with the ongoing pandemic and encouraging consumers to declutter their homes. The campaign centred around the idea of how it helps in mental well-being and builds a stress-free environment.
Sapna Arora, the chief marketing officer of OLX, India centred her message around:
Marketers using their moral compass while communicating with consumers.
The business has not lost its sight and is aiming towards its long-term strategy. And being conscious of where they put their money for marketing. As buying and selling online is coming more into view. Having an online presence is the new primary marketing channel for all businesses.
With its marketing communications, OLX is building trust with its consumers. Encouraging them to follow the necessary protocols laid out by the Government. Maintaining social distancing and practising the right sanitization protocols. Take the advice caring for your consumers and structuring new strategies helps you go further in the long run.
FAQ
What type of marketing strategy is followed by OLX?
Olx focuses its marketing strategy to make people aware of the advantages of buying and selling on OLX. It uses almost every advertising medium.
What is the target market of OLX?
The target audience of OLX is young, educated who have good disposable income.
Why is OLX successful?
OLX focuses on advertising, It also has made its site easy to navigate and mobile-friendly.
This Pandemic has brought many changes in our lifestyles and hence the market. One such change is the drastic increase in demand for a used car. But strangely, it’s much before the pandemic that the demand for a used car was so high. This pandemic has just fueled it more.
After India entered the BS-VI era in auto-industry from April 2020, the value proposition of the used cards is growing stronger. People in India have always been price-conscious. They are expecting cars to become expensive due to additional technology costs. Which has led them to opt for used cars rather than the new ones? And why not? When they are getting a better option for the same price as that of the new car !!
As per the MD and CEO of Mahindra First Choice Wheels (MFCW), companies are gradually focusing on reducing the production of diesel cars. After Maruti Suzuki decided to exit the diesel car segment by April 2020, the demand for compact diesel cars in the used car market showed a steep growth. Unless of course, there is a backlash against diesel cars.
The markets are dominated by the major players like OLX, Mahindra First Choice Wheels, Cars24, Maruti True Value, Hyundai H Promise, and others.
Some Factors, that affect the growth of the used cars in the market are:
Organized Channel Expected to Register Higher CAGR
Growing demand for luxury cars
Competitive Landscape
Increased Reliability
Reduction of the Ownership period
stacked up used cars
Organized Channel Expected to Register Higher CAGR
In the Indian market, the organized phase is anticipated to witness a CAGR growth of 22.79% throughout the forecast amount.
This marketplace for used automotive has seen vital growth over the last 3 years. This growth increase is especially driven by sales of used cars in railway system cities and an increase in online sales platforms, like CarDekho, Cars24, Droom, etc.
The majority of the OEMs have already entered the used automotive market. and people WHO didn’t enter the used automotive market at the initial stage entered the market throughout the last 5 years. Renault started the pre-owned automotive business in 2015 and Nissan had entered the business in 2017.
Significant OEMs in the Asian country, like Maruti Suzuki, Mahindra, Hyundai and Toyota, and luxury automotive makers, like BMW, Audi, and JLR, have their used automotive network. The sales have enlarged since 2017.
Consumers like safety, transparency, convenience, and low risk, whereas buying a second-hand automotive. that ought to act in favor of the organized sector. nevertheless, the unorganized sector occupies nearly eightieth of the whole market than the organized sector.
sales in organised sector vs un-organised sector
Growing Demand for Luxury Cars
One of the main reasons for the rise in the used automotive business is the demand for luxury cars. Before, owning a luxury automotive was accustomed to being a dream for the bulk, chiefly owing to money issues. however, this can be step by step dynamic, because the shoppers should buy used automotive.
Some major factors driving the expansion of the used luxury cars are as follows –
luxury cars have a high rate of depreciation worth,
youth driving towards higher model on low value
in urban cities, deprivation in finance management, and want quality product.
increase in the online marketplace for used automotive.
One of the major reason for the increase in used car business is the demand for luxury cars. Before, owing a luxury car was used to be a dream for the majority, mainly because of financial problems. But this is gradually changing, as the consumers can buy used car.
Reduction of Ownership period
Owners of the posh cars tend to unload their vehicles within a year or two. As they need for upgraded and higher models. A few years ago , the possession amount was of 6-7 years for many cars. It’s currently reduced to around four years and is predicted to dip additional to 3.5 years by 2021. This directly impacts the availability of used cars in market and additionally in good shape. That additional has led in accessibility of alternative for the shoppers.
Competitive Landscape
Online Presence
Opening of on-line platform could be a major force behind a rise within the numbers of the used vehicles business. Conversion has conjointly been instrumental in organizing the used automotive business on-line that historically been aloof from the net area.
With the existence of on-line portals, customers are able to flick through variety of used cars that work into their budget. It’s conjointly created the purchasers aware and able to search full regarding their future purchases yet.
Organised Players
The marketplace for used automotive in Asian country is generally commanded by major players like OLX, Mahindra 1st alternative Wheels, CARS24, Maruti True worth, and Hyundai H Promise. They have the biggest share of the market due to their business models and enlarged variety of pre-owned automotive shops.
Quikr, Honda automobile Terrace, Ford Assured, Toyota U-Trust, etc., are within the method of increasing their shops and operations within the native market.
Due to the increasing technological advances in the automobile sector, cars have gotten a lot of reliable. A well-maintained automotive can simply run, not bothering for years. This means, even the second owner of the vehicle, will be assured of a hassle-free driving possession expertise. Manufacturers are providing long pledge periods up to 7 years in some cases. This offer gives rise to the preference of shopping for a second user automotive. They get the advantage over manufacturing defects which will be treated with no overhead prices.
The used automotive market in the Asian country was valued at USD 24 billion in 2019. And it’s expected to register a CAGR of fifteen.12% throughout the amount (2020-2025).
The demand for used luxury cars has been growing at some thirty-fifth – four-hundredth year-on-year basis.
OLX’s report shows, the used luxury vehicles whose value was Rs 15lakh or more were the foremost most popular alternative among the shoppers.
Every month over 55,000 luxury cars are listed. The provision for premium cars jumped by over fourfold in 2017.
According to the OLX automobile Note report, 38th% of the 4-wheeler listing consisted of top-end sedans and luxury cars.
Mahindra 1st alternative Wheels has recorded sales growth of four-hundredth throughout 2018-19. that registered a revenue of Rs 148 crore.
It is sold-out over 250,000 used cars throughout 2018-2019.
CarDekho has been in the number 1 position. Within the on-line used automotive market recording a Year-on-Year rate of regarding 100 percent over the last 3 years.
With COVID-19, folks are following social-distancing. While they’re attempting to urge back to their family, folks are preferring personal transport over the public. and during this time of crisis, the economic resolution is to shop for a second-hand automotive
Medical equipment industry in India is still in the developing stage. As per data, approximately 80% of the medical equipment used in India is imported. The selling and general distribution expenses in the medical equipment industry in India are very high. The industry suffers from huge information asymmetry, lack of transparency and trust between buyers and sellers. Hospitals, on the other hand, are constantly looking for affordable, reliable medical equipment and services. PrimedeQ, a Bangalore based startup is working to bring a positive difference in the medical equipment industry by making buying, selling and renting of medical equipment easily.
PrimedeQ is India’s first e-Marketplace for Medical Equipment, connecting Healthcare Providers, Medical Equipment Sellers & Service Providers all on one integrated platform. Hospitals can Buy, Sell or rent equipment, get medical equipment serviced and buy spares & accessories – New or Used.
PrimedeQ aims to provide access to multiple affordable, good quality medical equipment options to buyers. It aims to bring down selling costs considerably for sellers through its virtual platform.
We are a one-stop destination for all things related to medical equipment. Such a platform does not exist today in India. Our short-term vision is to create as large a network, with a comprehensive portfolio of products and services as possible in Southern India. In the long-term, we will be #1 expert-Marketplace for medical equipment in India.
About PrimedeQ
Medical Equipment Industry Details
Medical equipment and devices market in India is about $5.2Bn growing at a CAGR of 15%. Including after- sales market the total market is estimated to exceed $6.5Bn. The industry is not only expected to grow beyond US$10-12Bn in the next 5 years. But more importantly, it is expected that there will be an increase in participation and market share for Indian Manufacturers.
Medical Equipment Industry
Founders of PrimedeQ and Team
Shanthi Mathur and Achudhan Mani are the founders of PrimedeQ.
Shanthi Mathur is the CEO of PrimedeQ. She has two decades of experience as a management professional in the healthcare domain. She has worked with organizations like ICICI, Max Healthcare, Asian Heart Institute, IBM India, Vaatsalya Healthcare and others in Leadership positions, before becoming a consultant in the area of performance excellence and data analytics.
At PrimedeQ, Shanthi looks after the Sales, digital marketing, technology, finance, HR areas and also other areas if and when needed.
Achudhan Mani is the director of PrimedeQ. He is the MD of Avanttec Medical Systems, a serial entrepreneur with more than 33 years of experience in the medical equipment field. Achudhan and Shanthi met through common contacts. Achudhan was inspired by Shanthi’s idea and so he joined Shanthi in founding PrimedeQ.
As Achudhan puts it “There is not a corner of the TN state that I have not traveled to, for selling and servicing medical equipment and yet, in general, the conversion rate is hardly 2%. I am tired of chasing customers for business… for once I want the genuine ones to call us”. Achudhan strongly believes in the power of Social Media/Digital Marketing and that e-commerce technology is the future of the growing medical equipment market
The other core member of PrimedeQ team is Dr. Sakshi Khandelwal. She is the Chief Officer eMarketplace at PrimedeQ. Sakshi is a dentist and Master of Health Administration by qualifications. Before becoming a consultant in the performance management and data analytics areas, she worked in the hospital management area for more than 6 years.
Dr. Sakshi is in charge of all day-to-day operations in PrimedeQ, including customer care and vendor alliances.
PrimedeQ has a 10-member team largely consisting of eMarketplace operations, bio-medical servicing and field sales teams.
PrimedeQ Team
How was PrimedeQ Started
The problem PrimedeQ is solving one which the Indian healthcare sector has been facing for ages. Shanthi was working with a chain of hospitals in tier-2 and tier-3 towns in Karnataka in 2014. She noticed that there were many instances where equipment break-down and go un-serviced for weeks.
Hospitals in smaller towns prefer to buy used/refurbished equipment as they have budgetary constraints. However, they have very limited options when they want to buy used equipment. In most instances, they know just a few refurbishers or agents and have to pay much higher. Again, when hospitals want to sell equipment they get a bad deal because their access to potential buyers is extremely limited.
“What if selling and buying hospitals could easily find each other in a large network? Both would get a more profitable deal. What if the same network could help find a service provider when the machine is down?” Such questions kept coming to Shanthi’s mind as she wanted to do something to solve this grim issue that the hospitals are facing.
A few years ago, a colleague of mine called up about a hospital who wanted to sell all its equipment just two-years after starting, since they couldn’t get enough business. They had very few offers, hardly recovering 40% of the cost. I could not help them at that time but eventually heard that they sold the whole lot for less than 1/3rd the cost after holding on for another two-years and incurring more losses. I thought if Flipkart, Amazon, OLX, Cars24, etc. could do similar things using e-commerce technology; why not create a platform dedicated to medical equipment.
Shanti started discussing a few ideas with a couple of ex-colleagues and discovered that 20-30% of the medical equipment market is for used/ refurbished equipment. This was huge but largely unorganized. Often when hospitals are unable to run and wish to close-down, they don’t have access to many potential buyers. It is all word-of-mouth still in this e-commerce era. This is what triggered-off the idea of launching an e-commerce platform dedicated to medical equipment and providing hospitals with multiple options when it comes to buying or selling. At the same time, everyone was clear that no equipment business could be successful without proper after-sales support and servicing. Hence the idea of a complete e-marketplace including service-support was formed.
PrimedeQ – Name and Logo
PrimedeQ is a shortened form of Primary Marketplace for Medical Equipment.
We designed the last letter ‘q’ to look like an MRI machine. Funny thing is contrary to our expectations however people pronounce the name as Primede – Q
PrimedeQ is an e-marketplace for medical equipment. It aggregates products and services and connects buyers to sellers in the most convenient and cost-effective manner at the same time offering unbiased information and expertise helping them make the right decision.
PrimedeQ deals in both new and used medical equipment. Besides PrimedeQ also has spares and accessories related to medical equipment. A user can rent medical equipment and also get repairing and maintenance services through PrimedeQ. The company plans to introduce an ‘Auction’ section on its website. PrimedeQ has teamed-up with Kennovation Software Services to develop the portal.
Some USPs of PrimedeQ are-
Bridges information asymmetry/gap
Aggregates and provides expertise
Authenticates buyers/sellers
Provides transparency in pricing/charges
Provides an end-to-end total solution
More than 90% of the hospitals in the country are small-and-medium sized, doctor-promoter lead, looking for affordable equipment and reliable third-party servicing options. As more and more hospital capacities are coming up in smaller towns’ access to quality products and reliable services are getting even more difficult. What is more, the medical equipment after-market is highly fragmented and un-organized in India. Sellers and competent service providers operate in their niche within limited geographic areas and do not have a strong digital presence. The younger generation of doctors is increasingly turning to the internet to look for solutions.
PrimedeQ – Launching Startup
PrimedeQ launched its startup in Bangalore. The first 18-months of its geographic presence was limited to Karnataka and slowly expanded to entire Southern India. Partnerships with equipment and spares suppliers are the key to PrimedeQ’s growth strategy. The company is also continuing to grow its portfolio of equipment through newer partnerships.
As e-Marketplace, PrimedeQ has a virtual presence and it matters less where we are physically based out of. Due to our virtual presence, we are already getting inquiries and servicing customers, not only from all over the country but also from overseas.
PrimedeQ – Business Model and Revenue Model
PrimedeQ has a well-planned revenue model. It earns revenue from the following sources
Equipment Sale
Repair & Maintenance Services
Spares & Accessories Sale
PrimedeQ offers all equipment required by a typical secondary care hospital such as OT, ICU/Critical Care, Emergency, OPD, IPD, Sterilization, Physiotherapy, etc., including products for home care. This includes anything from an ECG machine to MRI, NiBP cuff to CT Tube. Pricing ranges from a ₹1000/- for a spare part to a couple of Crores for a used MRI machine. It charges a commission for the sale of equipment and Spares.
PrimedeQ – Funding and Investors
Presently the founders have brought in Rs 10 million. PrimedeQ is planning to raise funds by the end of this financial year.
PrimedeQ – User Acquisition
PrimedeQ started with a Hybrid model (i.e online portal as well as on-field marketing). It initially spread the word 100% through on-field marketing team, participation in events and also Google Adwords. In the past 2-years, PrimedeQ’s digital presence has strengthened and from less than 10% of its leads coming from online channels, it is now more than 50%.
The company was able to acquire the first 100 customers in 15 months, with nearly 1/3rd being repeat customers. The two features of PrimedeQ which has acquired much popularity among the customers are-
Ability to sell used equipment directly to another hospital/doctor, with minimal intermediary charges and total transparency in the pricing.
One-stop-destination nature of its model – encourages customers to seek us for anything related to medical equipment, which they don’t know whom to reach out to.
From the beginning, we have stayed focused on the used/ refurbished equipment market which constitutes nearly 20-30% of the market and is arguably the low-hanging fruit. As an eMarketplace, a strong digital presence is critical and for a strong digital presence, good content is crucial. We are a one-stop destination for all things related to medical equipment. This means PrimedeQ is a go-to point for any medical equipment, service or spares. We are augmenting online content and features for equipment valuations, comparison and purchase decision support.
In B2B, customers expect credit, and the biggest challenge that PrimedeQ has faced has been in payment collections, delays, constant follow-ups, dis-honored cheques, etc. To solve the issue, PrimedeQ is avoiding credit business with first-time customers.
PrimedeQ is also fighting a perception bias. Many people feel that PrimedeQ is a premature concept and the industry is yet not ready for online purchase of medical equipment, which is not true. The younger generation of doctors are very IT-savvy and comfortable searching for equipment online and PrimedeQ is getting more than 100+ relevant inquiries/ month online alone. Close to 50% of its customers (specifically doctors) search for equipment online through smart-phones and many specifically requested for an App.
For those who believe that online shopping of medical equipment cannot gain popularity in India, Shanthi says that “The same logic was advanced for Flipkart, MakeMyTrip or Cars24. So, every idea sounds crazy until we do it. The customer behavior is changing fast and I strongly believe, time is ripe for leveraging latest technologies including AI, Blockchain and 3D-printing in this field and bring about disruptive transformation”
PrimedeQ – Competitors
There is no platform exactly like PrimedeQ, which is focused only on medical equipment and positioned as a one-stop destination. However, there are existing medical equipment companies with a minimal digital presence or e-commerce players who among other things also sell medical equipment. Some portals selling medical equipment that poses competition for PrimedeQ are Amazon, eBay, Medikabazaar, Colmed, Industrybuying, MedicoMart, IndiaMart OLX, Quikr, etc.
None of these players actively offer medical equipment servicing like PrimedeQ. Worldwide there are organizations like Dotmed, Medwow, etc, focused only on medical equipment who are doing well.
We get several inquiries from customers who have purchased oxygen concentrators from say Portea but need to now sell their used ones. They put it up either in OLX or PrimedeQ. Or say they have purchased a Bi-PAP machine, which is not working – they approach us for repair.
PrimedeQ – Advisors and Mentors
PrimedeQ is being mentored by KN Moorthy, ex-Regional Service Manager, GE Healthcare and Mr. Mukul Mathur, Vice President – IBM Systems Channels and Distribution, Asia Pacific.
PrimedeQ – Growth
PrimedeQ has received tremendous response from the hospitals. Currently, it has over 2500 registered customers (approx. 20% of South India market) and done business with 100+ customers in 38 different towns across the 5 Southern States. More than 30% are repeat customers, while 7-8% of the inquiries it receives are from overseas.
“There have been hospitals whom we met in our early days who did not do any business with us then but are now approaching us with confidence. Response from hospitals has been extremely positive. Many of them went on to say this is the need of the hour. But the strongest validation is that they pay. There are no discounts and freebies. We get market rates” Shanthi says.
PrimedeQ’s Plan for the next 2 years is to improve penetration in the regions it operates and augment its range of equipment & spares. It will also offer equipment valuation and purchase decision support online in the medium term.
PrimedeQ’s future plan also includes using data for AI and 3D printing for spare parts.
We strongly believe that our start-up will help indigenous medical manufacturers significantly and support ‘Make in India’ initiative. Growing regulations regarding quality of healthcare delivery and patient safety through institutions such as National Accreditation Board for Hospitals (NABH) and Atomic Energy Regulations Board (AERB) and others both at State-level and at the Centre will give the much-needed fillip to medical equipment industry. Our objective is to become an expert market place. We are not limited by the idea of being an e-commerce platform.
Purbalee Dutta
