ControlZ envisions a future where conscious consumption is the norm, and their mission is to make previously owned devices desirable once again. The startup strives to refurbish old smartphones and make them as good as new, using a streamlined industrial process.
With their approach, a renewed phone by ControlZ is crafted for the modern consumer, offering performance on par with a brand-new device while prioritising environmental sustainability. ControlZ is developing cutting-edge industrial expertise in India, focusing on revitalizing old devices to function like new, combining quality with eco-conscious values.
Medianews4u.com caught up Yug Bhatia, CEO and Founder, ControlZ
Q, What was the market gap seen that prompted the launch of ControlZ?
The launch of Control Z was driven by a clear market gap that became evident during the surge in digitalization in India, especially during the COVID-19 pandemic. As the demand for mobile phones skyrocketed, consumers were increasingly looking for devices that offered the best value. There was also a growing need for affordable smartphones, which led many to consider refurbished options. However, existing players in the refurbished phone market were failing to meet consumer expectations, pushing buyers toward unorganised markets where quality and reliability were uncertain.
ControlZ emerged as the solution, providing a premium renewed smartphone Just like New with a focus on customer satisfaction, value, and trust, addressing both the affordability and reliability concerns of consumers.
Q. Could you talk about the expectations of investors like 9 Unicorn and Venture Catalysts?
Investors recognise the significant potential of the refurbished smartphone industry and are keen to see it grow. They understand the increasing demand for affordable, high-quality devices, particularly in markets like India, where consumers seek value without compromising on premium experiences.
These investors expect businesses like ControlZ to capitalise on this expanding market by delivering strong performance, innovative solutions, and scalable operations.
They also look for companies that demonstrate long-term growth potential, increase market share, and build a strong brand presence. Their expectations go beyond financial returns, focusing on the broader impact a company can have in transforming the industry.
Q. Could you shed light on the company’s brand promise ‘As Good as New’?
Our brand promise, ‘Just Like New,’ reflects our commitment to delivering a premium experience with renewed devices. Renewed is a groundbreaking concept that goes beyond traditional notions of old, used, or refurbished. It creates a new category in the pre-owned segment, where we meticulously transform old devices into aspirational ones.
Each device undergoes 250+ cosmetic and functional checks to ensure it meets the highest standards. Additionally, we offer up to 18 months of warranty and include free charging accessories, so customers can enjoy the full experience of a smartphone that feels and functions just like new—all at an affordable price.
Q. The refurbished mobile market is a fraction of the new market. What is the growth potential?
The refurbished mobile market, though currently a fraction of the new smartphone market, is poised for significant growth. The global refurbished smartphone market is expected to see a considerable rise in valuation, from US$ 80.42 billion in 2024 to US$ 258.82 billion by 2034, with an anticipated CAGR of 12.40% during this period, up from the 11.90% CAGR seen between 2019 and 2023.
In India, the demand for refurbished smartphones is expected to grow at a rapid 19.50% CAGR through 2034. This growth is being fueled by factors such as the increasing affordability of smartphones and improved internet access. For many consumers in India, expensive new phones are out of reach, but refurbished devices offer a more accessible option, often with convenient payment plans. (Reference Link)
Q. The goal is to make old phones aspirational. Does this involve a combination of hardware improvements like new charger adapters and charging cables and also smart marketing tactics?
Yes, the goal of making old phones aspirational involves both hardware and cosmetic enhancements. We focus on providing a premium experience with our renewed phones, ensuring they feel Just like new smartphone. To achieve this, we include essential accessories like a charger adapter and cable with every device, giving consumers a fully packaged product at an affordable price.
This complete packaging elevates the appeal of renewed devices, transforming them into an attractive, aspirational option for customers seeking premium quality at an affordable price, without compromising on value or experience.
Q. Which are the main devices that you focus on like Apple, Samsung? Are you targeting the major Metros or also smaller towns and cities?
We primarily focus on premium devices, particularly from brands like Apple. Our target audience is Pan-India, catering to consumers who seek the best value in premium smartphones.
Q. The price is roughly 40-50% less than a new phone. But is it still a challenge to scale the refurbishing business?
Yes, scaling the refurbishing business does present challenges. One of the main difficulties is that certain smartphones have limitations when it comes to repairability. Additionally, we face challenges with a limited number of SKUs and available repair components. In some cases, it’s difficult to source repair materials for older devices, which can hinder the ability to refurbish them at scale. Despite offering devices at 40-50% less than new phones, these operational hurdles make scaling a complex process.
Q. Are consumer attitudes toward refurbished devices slowly changing or is the lack of quality focus in reselling smartphones by unorganised players a big issue?
Consumer attitudes toward refurbished devices are indeed changing, largely due to the affordability and warranties offered by organized players in the market. One of the key reasons for this shift is the diminishing appeal of new smartphones, which often come with high price tags but offer minimal upgrades.
In contrast, renewed devices provide consumers with premium smartphones Just like new, but at a much better value. This combination of cost savings, reliable quality, and the reassurance of warranties is gradually increasing consumer confidence in refurbished devices, moving them away from unorganized markets that lack quality focus.
Q. Is the festive season important for Control Z given that upgrading and premiumisation are the key themes this year?
Yes, the festive season is important for Control Z, especially with the rising demand for upgrading and premiumisation. This year, we are well-positioned to cater to these trends by offering renewed devices that deliver a premium experience just like new smartphones, but at the best possible price. The festive season provides a key opportunity for us to attract customers looking for quality and value, making it a crucial period for driving growth and expanding our reach.
Q. What kinds of marketing activities does Control Z do to create awareness?
Influencer Marketing: We collaborate with some of the best tech influencers in the industry, who help us highlight the benefits of renewed devices. By tapping into their large, dedicated follower base, we build credibility and trust while showcasing the premium experience and affordability of our products.
Performance Marketing: We invest in targeted digital advertising campaigns across platforms to maximise reach, optimise conversions, and drive traffic to our website, ensuring our products reach the right audience.
Partnerships and Collaborations: Control Z has partnered with platforms like OneCard, Mobikwik, OLX, Snapmint, and OneAssist to enhance customer experience and expand our reach. OLX connects us with a broad audience seeking affordable pre-owned devices, while OneCard and Mobikwik offer flexible payment options such as cashback and digital wallets. Snapmint provides no-cost EMI plans, making premium renewed smartphones more accessible. OneAssist adds value by offering extended warranties and protection plans, ensuring customer peace of mind. These collaborations make it easier and more secure for customers to own premium renewed devices.
Q. What are the environmental and economic benefits of buying refurbished smartphones?
Environmental Benefits:
a. Save Raw Material: Refurbished smartphones minimize the demand for new devices, leading to a significant reduction in the consumption of raw materials, water, and energy used in manufacturing. A 160-gram new phone requires 30kg of raw materials and results in 85kg of waste, meaning 99.8% of the waste is generated before the phone is even used.
b. Minimises e-waste: Instead of discarding old devices, we refurbish them, extending their lifecycle and preventing them from ending up in landfills.
c. Lower Carbon Footprint: The carbon footprint of a single device might seem small, the impact becomes significant when considering that over 2 billion mobile phones are sold globally each year—a number that continues to rise. In 2007, ICT represented 1% of the world’s carbon footprint, but by 2040, this is expected to exceed 14%, approaching half the carbon impact of the entire transportation industry.
Economic Benefits
a. Cost saving: Consumers can purchase premium smartphones at a fraction of the cost of a brand-new device, making it an affordable option without compromising on quality.
Q. Does most business come offline or online on platforms like Amazon, Flipkart?
We sell our devices primarily through our website, focussing only on the D2C model. This approach allows us to centralise all aspects of the sales process, ensuring a direct connection with our customers.
