Amazon and Flipkart are busy preparing for the upcoming holiday promotions. Both online marketplaces plan to provide a large number of services to convince customers. But even before any profitable deals and discounts were announced this year, the major e-commerce platforms had set record sales of smartphones in India.
After a standstill for nearly two months due to a national lockdown, the growth of smartphone sales on platforms including Amazon and Flipkart has been accompanied by the overall expansion of the e-commerce sector, with the goal of slowing the spread of COVID-19.
Aditya Soni, senior director of mobile business at Flipkart, said that in the past six months on the platform, it has seen “exciting growth” and the migration of huge customers from offline to online. The Bangalore-based company claims that the sales of third-tier and above smartphones are growing fastest.
Soni told Advertisement Shout: “We found that certain products in our pockets have grown as high as 200% to 300%. At least 100%.”
Amazon has also observed a similar growth trend.
An Amazon spokesperson said: “Even in remote areas of the United States, customers still trust us to provide safe and reliable delivery services,” but did not disclose the growth percentage.
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Analysts believe that one of the main reasons for the growth of online smartphone sales in India is the widespread adoption of work-from-home culture and virtual classrooms, which are aimed at limiting the spread of the coronavirus outbreak. Increasing demand, coupled with the fact that many people still cannot shop safely in person, this is a windfall for online sellers.
Mr. Gutgutia, deputy director of management consulting firm RedSeer, said: “Between June 2020 and August 2020, the overall online sales trend of mobile phones reached 125-175% of the January 2020 level.”
Gutgutia also pointed out that in addition to the increase in online sales of mobile phones in the country, the average online sales price of mobile phones has risen from Rs. The 11,500 rupees in January is Rs. 16,000 between July and August.
He emphasized: “The increase in average selling prices means that a large number of mid-to-high-end models have been purchased.”
Ankur Bisen, senior vice president of the retail and consumer products division of the consulting firm Technopak, said that the increase in smartphone sales through online portals is due to the increase in replacement demand.
He said: “The new demand is not great, because we have achieved considerable saturation.”
“Customers want bigger displays and bigger batteries”
Flipkart’s Soni said that some of the features that are needed now are to use larger displays and larger batteries in new smartphones. The online market conducted a survey of 215,000 respondents, which emphasized the demand for mobile phones with large-size displays, of which 82% expressed interest in screen sizes of 6 or above.
In addition to the display screen, Flipkart’s survey also found that the processor on the phone drives nearly 50% of the purchase decision, followed by the camera, and then the battery life that is more expensive than Rs. 15,000 brackets. The price exceeds Rs. Flipkart found that for 30,000 brands, the importance of the brand began to increase, but it is no longer so important in the budget segmentation.
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Like Flipkart, Amazon recently surveyed 60,000 people in Tier 1, Tier 2, and Tier 3 cities and towns, and the results showed that customers want to buy smartphones between Rupees. 15,000 and rupees. 25,000 An Amazon spokesperson told Advertisement Shout that more than 50% of respondents expressed interest in buying Samsung phones, followed by OnePlus and Xiaomi.
Both Amazon and Flipkart have seen more and more consumers choose free EMI and other financial options.
Expansion of e-commerce in India
Although India’s national economy has been largely affected by the coronavirus pandemic, the e-commerce sector seems to have recovered and expanded since the lockdown was imposed on March 25. Market analysts believe that the expansion in this field is due to meeting strong consumer demand in various categories.
In addition to the increase in the value of goods, which represents the total sales value of goods sold, new customers have also begun to make online purchases in the country, achieving rapid growth in the past.
Technopak’s Bisen said that in the past four to five months, the number of new customers entering the e-commerce trend for the first time has increased by 30%. He added that if COVID-19 does not become a pandemic, the speed will not be so fast, and the growth it will bring will equal many years.
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The development of e-commerce in the country has prompted many retailers to join online platforms.
Ramesh Srivastava, the owner of a small mobile store in Delhi, is one such retailer, and he recently started selling mobile phones through an online platform. “Because people didn’t come to our store in person, our survival during the pandemic became very difficult. Therefore, we finally decided to start offering our products online.” He told Advertisement Shout.
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