New Delhi: Online Channels held a 43% share in Q2 2020 in the India online smartphone market, with Amazon holding its highest ever 47% share among online channels according to the latest research from Counterpoint Research.
While smartphone sales in the online segment declined by 46% YoY, the offline segment declined by 54% YoY. The Rs 15,000 – Rs 20,000 price band contributed the most and reached its highest ever share on Amazon. Flipkart’s share declined; however, the platform led the sub-Rs 10,000 price band with more than 50% share in the overall online smartphone market.
The increase in online channels share is due to a shift in consumer behavior, who are now preferring contact-less shopping experience and practicing social distancing. The quarter also saw Amazon reaching its highest ever share of 47% among online channels, compared to Flipkart’s 42%. The share of online channels in overall smartphone shipments reached 43% during the quarter as consumers preferred contact-less shopping experiences, the research said.
Counterpoint Research added that online channels remaining strong this year and taking a 45% share in the Indian smartphone market in 2020. The COVID-19 pandemic had a huge impact on the current market scenario and innovative business models have emerged.
“The COVID-19 pandemic had a huge impact on the overall smartphone market, April being a washout month. Online channels’ shipments also declined compared to the last year. However, due to the current circumstances, consumers are preferring online platforms. We have already witnessed pre-COVID level shipments at the end of Q2 2020 due to the pent-up demand created in the market by the nationwide lockdown. Brands are aligning their product as well as channel strategies to drive up volumes. Multiple financing options and attractive offers have made the devices more affordable for consumers. During the quarter, multiple brands adopted an online-to-offline (O2O) business model and hyperlocal delivery to help their offline channel partners,” Senior Research Analyst Prachir Singh said.
“Due to the preference for online channels, no offline-exclusive model was launched during the quarter. However, during the same period, 11 online-exclusive SKUs (stock keeping units) were launched,” Research Analyst Shilpi Jain added.
Source: Zee News