SEOUL, Dec. 31 (Korea Bizwire) — A shopping mall specializing in refurbished products has seen its sales soar after selling its goods at bargain basement prices.
The company reportedly sold nutrition cream worth 50,000 won (US$44.92) for only 2,500 won (US$2.25) and facial masks worth 1,000 won for just 99 won.
These shocking prices spread like wildfire, resulting in huge profits over just two months.
The number of shopping mall members has increased by 50 percent compared to the same period last year. Unrivaled prices were possible by importing products from a bankrupt cosmetics company.
In the wake of the economic slump, consumers, who have become thrifty, are eager to buy refurbished products. The popularity of such products is also dependent on the trendy young generation, many of whom prefer low-cost products.
Refurbished products, which are distinct from secondhand products, stems from the term “refurbish”, which means “to decorate”.
Products returned immediately after delivery due to customers changing their minds, products expiring soon, products with defects in the manufacturing and distribution process, and inventories of companies that have shut down are included as refurbished products.
As such, prices of refurbished goods are sometimes more than 90 percent cheaper than the original, with no difference in quality.
Although the bulk of the refurbished market is related to the home appliance and furniture industry, the market has expanded recently to include fashion, daily necessities and food. Companies are jumping into this new market.
For example, Casamia Co., a furniture company, sells furniture used in advertising for cheap prices at its shops. The number of stores specializing in refurbished products has increased as well.
Recently, however, online shopping malls for refurbished products are gaining popularity as the number of single households has increased.
Experts advise customers to exercise caution when purchasing such products as it can be difficult to return them or obtain a refund.
Also, if the defect is larger than expected, there is a high chance that there will be a dispute between the seller and the consumer.
To prevent this, consumers should check product descriptions and the expiration dates of the products they are purchasing.
Furthermore, experts point out that while the market for refurbished goods is gaining popularity due to the economic downturn, in the long run, it too will be affected by the economic slump.
D. M. Park (firstname.lastname@example.org)