Online sales of smartphones in India to reach record 45%
Online smartphone retail channels are likely to account for a record 45% share of sales in India in 2020, according to the latest report from Counterpoint Research.
This will be the highest ever share for online channels in the Indian smartphone market.
According to the news agency IANS, which quoted the Counterpoint Research report, among the online channels, Flipkart is likely to hold top position while Amazon will grow the fastest.
The two online biggies are pulling out all stops to get back to peak business, now that the lockdown measures are being slowly eased even though the Covid-19 curve is far from being flattened in India.
Also, the report added: “Xiaomi is likely to lead the online brand rankings while Realme will be the fastest-growing brand in the online space in 2020.”
Prachir Singh, Senior Research Analyst, who authored the Counterpoint Research report, has been quoted as saying: “The Covid-19 crisis had little impact in the March-ending quarter. However, during the lockdown, the market has come to an almost complete standstill, massively impacting all aspects of the smartphone market including both online and offline channels.”
Smartphone market resilient
Earlier this week, in another report, Counterpoint said “despite the dire economic data, we continue to believe the smartphone market is relatively resilient compared to many industries. Consumers rely heavily on their mobile devices for information and entertainment, however they may delay upgrading to a new model when economic uncertainty is high.”
This is most likely to disproportionately impact low-end devices – those favored by consumers on marginal incomes – as they are the ones most likely to find their jobs impacted by the economic downturn, the report added.
Some updates from companies in the smartphone supply chain indicate less negative outlooks than many fear. Some of this is likely due to supply issues resolving, but there are also positive indicators connected with OEM demand as shops reopen.