With consumers chary over spending on high-cost consumer goods, Indian entrepreneurs are increasingly buying pre-owned products online, according to a study by e-commerce portal Alibaba.com.
Searches for second-hand products by Indian B2B (business-to-business) buyers on Alibaba.Com recorded in November, 2009 were 280 per cent higher than 2008 representing an average monthly increase of 14 per cent, the data said.
"The B2B purchasing behaviour in India is similar to elsewhere in the world. There was an average monthly growth of 12 per cent in global searches for second-hand products on our platform from November, 2008 to November 2009, compared with 14 per cent in India," Vice-President of Alibaba.Com Sabrina Peng said from Hong Kong.
Consumer goods such as cars, laptops, bikes and mobile phones are the most popular types of second-hand products searched on the website.
"However, there is also a significant demand for non-consumer second-hand products, including used machines, rails, containers, tractors and generators," she said.
Asked about the factors that might have led to the Indian preference for buying second-hand goods, Peng attributed it to recession.
"We believe the lessons from the economic downturn have left an impact on consumers by encouraging them to adopt a more cautious approach towards spending. This is perhaps more about a change in mentality than people's actual need to reduce spending," she said.
