Togofogo plans to open over 100 retail stores in the next two years. In the initial stage of expansion, the company will be focusing on the Northern part of the country. The company aims to reach to the last mile customers by creating offline experience centers.
By opening these retail stores, the company plans to weed out inefficiencies, lack of certified products in the market, and under or overvaluation of pre-owned mobile phones. The company aims to capture major market share in the offline market. The refurbished market became the fastest growing smartphone segment in 2017 with the majority of sales being made through the unorganized players in the offline market. However, with the demand for refurbished or second-hand smartphones predicted to grow by up to 27% in the coming two years, Togofogo leaves no stone unturned to significantly capture the offline market through an organized channel.
Commenting on the development, Mr.Soumitra Gupta, founder, Togofogo, said, “We are planning to launch our first ever offline store in Jaipur, being one of the potential cities in North which contributes a major chunk of sales volume in this segment of mobile handsets. We will be focusing only on tier-1 and tier-2 cities for our offline expansion this year and will evaluate foraying into smaller cities next year, based on the rollout and performance of these offline stores. By entering into the offline market, we are eliminating the multiple layers and involvement of third parties by directly connecting to our customers.”
The company has successfully sold 3, 50,000 units of refurbished and pre-owned phones and established a customer base of 3, 00,000 in a span of 3 years. Founded by Mr.Soumitra Gupta, an industry veteran with over 2 decades of experience, the company aims to transform the grey market of second hand and refurbished mobile industry into an organized ecosystem. The offline stores-cum-experience centers form a key element of the company’s expansion strategy as it aims to widen its reach across the nooks and corners of the country.