Demand for consumer durables, electronics rose significantly in Q3: OLX

OLX, a homegrown online classifieds platform, has witnessed a major increase in listings and demands for consumer durables and electronics in Q3, 2020.

“Listings and demand for consumer durables and electronics surpass pre-Covid-19 levels, buoyed by consumer sentiment for value, a desire to upgrade, and the shift to digital,” said OLX in an official release.

In terms of consumer electronics, the demand for computers, laptops, accessoriesand tablets increased significantly across both metros and non-metros in Q3 when compared to Q1, 2020. There was an increase of nearly 150 per cent in the demand for computers and laptops, while the demand for computer accessories grew nearly 100 per cent.

The demand was “driven by continued work from home and online schooling for kids”, OLX said.

“This is matched by growth in demand for home decor and garden furniture owing to people spending a lot more time at home and the celebratory optimism of the festive season,” it added.

“In home décor and garden furniture, demand in non-metros far outstrips demand in the metros. While the former has registered 175 per cent increase in demand in Q3over Q1 of 2020, metros have registered 100 per cent increase in demand,” it added.

Total number of buyers

The growth in the total number of buyers from non-metros far outstrips those from metros across all consumer goods categories in Q3over Q1, as per the report.

The demand for consumer durables such as ACs, TVs, washing machines and furniture (sofa and dining) was nearly double in non-metros in Q3compared to Q1, 2020.

“This trend is a clear reflection of the impact of the pandemic in metros compared to non-metro that are expected to recover faster than its metros from the Covid-19 disruption. The trend on OLX also indicates the growing comfort of using online services in non-metros, catalysed by the pandemic,” said OLX.

Demand surge trips consumer durables supply lines

In terms of new listings on the platform, the listings of fashion goods across all geographic clusters witnessed the highest increase in Q3 over Q1.

Similarly, in both the electronics/appliances and furniture categories, growth in the number of listings from non-metros has outstripped the growth in metros by a factor of 2-3 across the different product types, as per the report.

“This highlights the inclination among people to upgrade, especially ahead and during the festive period. With the lockdown, users have also had more time on hand to rearrange their homes by doing away with goods they no longer need on OLX,” it said.