Here are the basics of the reverse logistics market. 5% of what is sold in the market come back through product defects, damage, overstock, end of life and customer returns. Original Equipment Manufacturers (OEMs) like Samsung, Lenovo, Dell, Haier typically hold these products in their warehouses for months while they figure out what to do with them. In this waiting period, the product rapidly depreciates in value, sometimes at the rate of 50% in 3 months.
Greendust saw the opportunity to build an interesting business by zeroing in on the pain-point of helping OEMs dispose of this product more efficiently.
Launched in 2009, GreenDust refurbishes factory seconds to sell to customers at heavily discounted prices. It gives customers the opportunity to buy aspirational brands at massive discounts through online-offline channels, and simultaneously offers manufacturers and distributors an alternate, organised marketplace. It is currently in the process of taking its unique business model to emerging markets across West Asia and Africa
A company’s product enables its business model and the business model defines the parameters of the product. Neither is permanent in nature; changes in one impact the other and in the best cases they play off each other.