Is buying phone turning into a firmly online activity? Even as mobile phone sales drop in stores across India and attributed in part to the overall economic slowdow in the country, new data indicate that they might just be raring to go on the internet.
According to the latest analysis of India's online market for smartphones, shipments grew by 26 per cent in the last quarter, even as it declined by 4 per cent in the offline (stores) segment. The analysis was done by global telecom industry consultant Counterpoint Research.
The rise in popularity in buying phones off the internet stems from a number of factors. Top e-commerce sites, including Flipkart that alone accounts for 58 per cent of all phones bought online in India, have been having a series of promotions to drive up sales ranging from Flipkart Summer Carnival to Amazon Fab Fest.
Mobile brands themselves have started focussing on sales dividends in the online space ever since Xiaomi came in from nowhere and captured the Indian smartphone market over the past two-three years, primarily with its online-first strategy. Many models were sold exclusively online, while others came with hefty discounts across various platforms. Samsung, dethroned from its position as the largest selling phone brand by Xiaomi this year, has a strategy in place to recapture its crown, and it hinges heavily on online sales. The move is showing dividends as Samsung's online sales show a rise from 9 per cent last year to 11 per cent now, according to Counterpoint.
Brands have not been riding on sales from platforms like Flipkart and Amazon alone, with those like Xiaomi garnering business on their official sites, too. “We saw that OEMs pushing their products towards their own online products to divert some of the digital footfall to their own store,” points out Anshika Jain, research analyst at Counterpoint, adding, “The growth of Xiaomi and Realme and the focus of Samsung on online channels, with its Galaxy M series, drove the shipments in the online segment.”
Xiaomi, with its official website alone, captured 12 per cent of the online smartphone sales, while its sales, including those on platforms like Flipkart and Amazon, totalling at 46 per cent.
The upcoming festive season sales will be crucial with brands and online marketplaces going full throttle to garner more business. “For example, Amazon recently infused $404 million in its India business and is also investing heavily in Future Retail group to strengthen its offline footprint in India,” observes Counterpoint associate director Tarun Pathak. Xiaomi's Mi.com has started offering 'guaranteed next day delivery' service in over 150 cities across India.
