New Delhi: Driven by discounts and other promotional offers during Flipkart’s Big Billion Day sale and Amazon’s the Great Indian Festival sale, the online sale of smartphones is likely to cross $1 billion figure in a record five days, according to market analysis by Counterpoint Research.
Together, the two e-commerce majors are expected to make up for more than 85% of the total smartphone sales in India during the five-day offers, which began today.
Besides exclusive online launches, Flipkart and Amazon have laid stress on the smartphones market by coming up with various offers like cashback and exchange offers, no-cost EMIs, free screen replacement and free extended warranty period.
Flipkart has cornered the maximum number of exclusive smartphone models and will likely take a lead in terms of sales volume. However, Amazon is looking strong with its premium smartphone offerings, with upcoming launches such as OnePlus 6T, as well as its growing stickiness and value offered with the Prime programme.
“Online sales are estimated to grow faster than offline sales during this festive month as the top two online retailers are set to leverage pent up festive demand in the next 30 days,” explained Anshika Jain, research analyst at Counterpoint Research.
“This will be mainly driven by the multitude of new smartphone launches across different price points in the online channels this year as compared to last year. Flipkart has cornered maximum number of exclusive smartphone models,” she added. “However, Amazon is looking strong with its premium smartphone offerings as well as its growing stickiness and value offered with the Prime programme.”
Although e-commerce sales in India are growing quickly and have caught up with Black Friday in the US, these still pale in comparison with Single’s Day in China. Although 11/11 (November 11) in China is supposed to be a day of celebrating being single, over the years, it has become a popular day to get married too. It is also the biggest shopping day in the world, thanks to the likes of Alibaba and JD.com.
“India is still underpenetrated market with just 35% of the population owning a smartphone,” said Tarun Pathak, associate director at Counterpoint Research. “This year, we are estimating that smartphones worth over $1 billion are likely to be sold in the next five days.”
Counterpoint also noted that the contribution of Chinese brands to total online sales is estimated to cross 70% this year, with mid-tier devices priced between Rs. 10,000 and Rs. 15,000 likely to be popular online.