Thrift Stores: A new buzz in Indian start-up space?

With India witnessing a start-up revolution, umpteen numbers of ventures are being added to the entrepreneurial ecosystem each day, each trying to differentiate themselves from others. Needless to mention, that since India forms one of the most promising economies of the world, it lays the foundation for many need based ventures, ‘Thrift Store’ being one of them

The concept of thrift marketplace is not new to India, which presents its version as a flea market, a place where one can purchase resale or recycled goods. A report by ASSOCHAM says that the resale market in India is estimated to be Rs 80000 crore and has been growing at a rate of 15 per cent per annum. Refurbished items, factory seconds, antiques and others have been attracting consumers from all economic levels.

From Flea Market to Thrift Store: ‘Thrift Store’, a popular concept in West, operates in multiple categories, where used household items ranging from furniture to consumer durables along with clothes and accessories are up for sale. The items received by a thrift store can be in the form of donations or may be purchased by them from users. These are then remodelled to make them fit for next usage. In comparison to new products, these are heavily discounted, thus more economically accessible to people.

Though there are many flea markets operational in different parts of the country, an organized thrift store can witness immense footfall. With refurbished phones and remodelled cars present in India, the concept has established itself, but its presence in other categories of household importance is negligible. Large number of young working population and emerging middle class with less disposable income, present a lucrative target segment for such concepts to establish themselves on a large scale.

Online thrift store –The concept: Online thrift store is a revolution, the way second hand goods were primarily transacted. It is an online marketplace, where one can sell used items. The most popular version present in India is of a community market place based on peer to peer economy model like Olx, Quikr and upcoming versions like Spoyl, ListUp and Tradly. In this, the platform directly connects buyers and sellers, who can interact for variety of products. Popular western counterparts are Poshmark, ThredUp etc. The major difference between the two is that while most Indian stores operate in multi-category, western stores are dedicated to a single category, which makes it more accessible to consumers for their specific needs. (Poshmark and ThredUp is social marketplace to buy and sell second hand clothing)

A shift in consumer perception has been seen over a period of time, which is now more open to using second hand goods. While they were restricted to automobiles and consumer durables earlier, they are equally receptive now to furniture, clothes, accessories and other similar item.

Zefo – An Indian Thrift Store startup: Zefo is an Indian startup based on the concept of thrift store. It is a used furniture marketplace which sells both used furniture as well as factory seconds. The major USP is remodelling the entire furniture, making it fit for next usage. The same is highlighted even in their tagline that reads – ‘From Used to Ready to Use’. It started its operation as an online marketplace with presence in Delhi NCR, Bangalore, Mysore and Mumbai, and has opened their first physical store in Gurugram under the name of ‘Zefo Experience Center’.

Implication in Indian context: With rising second hand goods marketplace, concept of thrift stores represents a promising opportunity for budding entrepreneurs to enter.

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