How Second-Hand Economy Is Giving a Boost to Yemen Economy
Yemen or The Republic of Yemen, a part of Arab Sovereign State is the second largest country in the Arabian Peninsula. Yemen lies at the southern end of the Peninsula in Western Asia. The country shares its borders with Saudi Arabia and Oman, with coastline stretched across the Red Sea, the Gulf of Aden, and the Arabian Sea.
Yemen is a developing country and is considered to be the poorest one in the Middle East. It represents itself on many national and international platforms like the United Nations, Arab Leagues, World Federation of Trade Unions etc.
The Economy of Yemen has been facing long term challenges towards attaining a stable growth. Since the year 2011, the country is in state of political crisis ranging from street protests against poverty, unemployment to the civil war after the death of Saleh in 2017. The country’s economy mainly relies on the service sector. Apart from the service sector, industrial sector and agriculture are key contributors in GDP. Of all these petroleum brings an inflow of 25% in GDP and bags 63% of Government income. As per the reports in the year 2017, Yemen had a GDP of USD 37.3 billion and the per capita income was reported to be USD 1245.
Economic growth in the coming years will critically depend how the prevailing socio-political scene improves. A positive shift will help in increasing the pace of rebuilding the economic structure and Yemen’s social acceptance. The Middle East market can play a vital role towards giving a boost to the Yemen economy. Looking into the current interests of tech giants like Microsoft, Apple Inc, Samsung etc towards the refurbishment of electronic devices, several countries in the Middle East like UAE has developed a huge market for these products. There are several options to import used electronics in bulk from UAE and other countries.
While the country tries to nudge itself out of the state of uncertainty, given the recent improvements, a steady rise in GDP is being projected. To attain the targeted growth in GDP, an alternate economy, apart from oil and agriculture, could play a vital role. There is a need to strengthen a parallel economy for better growth opportunities in Yemen. Taking this into consideration a major segment of the parallel economy can be generated by supporting and regularizing the second-hand economy.
What is a Second-Hand Economy?
The act of selling, buying and swapping of the used goods including IT assets, used electronics or other articles for the purpose of revenue generation is considered as Second-Hand Economy. Hence, it can be said that a second-hand economy varies from buying a pre-owned computer, laptop to the trading of old smartphone with some other entity.
How Can Second-Hand Economy Fuel Growth?
Yemen is one of the slow-growing markets and by the end of 2013 only 14.9% of the population had access to the internet which rose to to 24.7% in the year 2016. As per the Yemen Telecommunications and Broadband Reports 2016, the country was considered to be unpredictable market due to other civic issues. The report though also anticipated positive sign with the launch of submarine cable project by Tele Yemen. The project is due for completion in 2018.
Considering the successful completion of the project, a sudden increase in the overall internet penetration is expected. This is likely to bring about a quick surge of demand in the consumer electronics market. In the last few years, consumer electronics market has rapidly shifted towards smart devices. The price of these smart devices can be a deterrent for the not-so-affluent consumer groups. An optimised solution to this problem is the use of refurbished electronics. These pre-owned laptops and other electronic devices come at a pocket-friendly price fulfilling the need and necessity of smartphones and other electronic gadgets. But the word refurbished electronics often raises a number of questions in the mind of a potential consumer – is it safe to buy refurbished gadgets? what are the reasons that the first owner changed the products? is the quality of used laptops good? etc. The below section sheds some light on this aspect:
The Anatomy of Pre-Owned Electronics
Analysing the quality of a used electronics device becomes a big challenge for most. Most of the second-hand electronics undergo a detailed quality check and according to those results, the non-functional parts are repaired or replaced. In addition to this, all the cosmetic upgrades are taken care off. Hence, when a refurbished laptop hits the shelf of any store it is completely safe to buy these used laptops.
Another question that hits the mind of a buyer is the reason why the first owner changed the product? The very straight answer to this fact is that technology is evolving everyday and the market is full of tech-savvy consumers, who love buying latest products. On buying a new one they even try to grab some deals in lure of exchange of the old electronics. These pre-owned computers or other gadgets are then sent to classified refurbishing units where all the items are checked as per the industry standards.
Hence, the bottom line is that buying used electronics may be great idea given the big cost savings that they offer.
The market for second-hand electronics is growing rapidly in developed countries like UAE, Canada etc. A lot of bulk suppliers of used electronics trade in these markets who can be instrumental in the export of bulk laptops and other electronics to various developing countries like Yemen, Nigeria, Kenya and others.
Import of used electronics from these refurbishers helps people in developing countries to have access to the latest devices at a very low price. This, in turn, helps in overall revenue generation and strengthening of the Second-Hand Economy. If the resources are optimally managed the second-hand electronics market can prove to be one the biggest source of revenue generation.
Refurbished Electronics – A Bright Spot In Yemen’s Economic Sector
Given the key trends that are influencing the consumption pattern within Yemen’s market, it is time that we talk about the rise of the market for refurbished products in the country. The demand for the refurbished electronics has registered a marked increase due to the ongoing computerization trend that has taken a hold throughout the country. Use of used and refurbished electronics becomes a truly viable and sustainable option for the price-conscious and cash strapped customers. Even though there are only a few manufacturers of IT products in Yemen, they have been able to keep up with the demand by concentrating their efforts on the import markets.
Thriving on the cost-effectiveness of refurbished electronics, the interest of buying these products is growing rapidly. This rapid growth is due to the price reductions and sale offered by offline and online retailers. Businesses and consumers are showing huge response and looking to keep up with the latest technologies, especially in the categories of second-hand mobiles, computers and laptops.
UAE Can Play a Big Role in the Growth of Refurbished Market in Yemen
Due to increasing popularity of refurbished electronics, many renowned brands in Yemen have partnered with the authorized refurbished retailers. To cater to this increasing demand, Yemen market has become attractive for exporters based in other markets. UAE, being the large trading hub in the region, becomes a really lucrative option for buyers and young and tech-savvy consumers in Yemen. Having a strong trade relationship with UAE computer market will give a push to the refurbished industry in Yemen and could result in increased growth in e-commerce sales across the retail sector as a whole.
Veracity World is also one of the renowned refurbishers in UAE with its business expanding globally. The company offers the most feasible solution for customers and businesses who dream of high-end products but cannot afford one. It is an ideal source for the import of pre-owned, used, and refurbished electronics. The company is well-known for its expert IT e-waste management services that help businesses to achieve their business goals more effectively.
The company not only procures high quality used electronics from corporates and individual customers in UAE, it also has an inhouse facility to repair and refurbish electronic goods. All the products sold by Veracity World are tested thoroughly by qualified technicians. More and more buyers are realizing the benefits of conducting business with Veracity World, as the company is the leading supplier of electronics in African markets such as Nigeria, Kenya, Ghana, and also in various parts of Middle East like Iraq, UAE etc.
In its bid to further expand its reach in Middle-East market, Veracity World is keen to expand its partnership with trusted buyers of refurbished electronics in Yemen.