Online channel share increases to 43% in Indian smartphone market as contact-less delivery preferred: Counterpoint


By: Tech Desk | New Delhi |

Updated: August 13, 2020 9:23:10 pm

mental health, mental health issues, mental health illnesses, mental health therapy, texting for mental health therapy, indian express, indian express newsConsumers prefer buying smartphone from online channels due to the pandemic.(Source: Getty/Thinstock)

The pandemic has shifted us all online. Due to the wide-spreading coronavirus, most consumers now prefer contact-less delivery and hence are shopping more from online channels. The same is the case in the Indian smartphone market. According to the latest Counterpoint Research report, online channels held a 43 per cent share in Q2 2020 in India’s smartphone market.

During the second quarter of 2020, smartphone sales in the online segment declined by 46 per cent YoY, the offline segment declined by 54 per cent YoY.

The report clearly states that 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 saw Amazon reaching its highest ever share of 47 per cent among online channels, compared to Flipkart’s 42 per cent. The share of online channels in overall smartphone shipments reached 43 per cent during the second quarter of 2020 as consumers preferred contact-less shopping experiences.

“Looking forward, we see online channels remaining strong this year and taking a 45 per cent 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 report states.

Commenting on the COVID-19 situation and market dynamics, Senior Research Analyst Prachir Singh said that “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,” Singh further added.

Meanwhile, Research Analyst Shilpi Jain said, “pent-up demand and changed consumer behavior due to the current circumstances, accompanied by attractive offers and promotions by online platforms, were the main reasons for the increased share. During the quarter, Flipkart organized the Big Savings Day Sale to drive up volumes.”

As per the report, Xiaomi alone captured more than 44 per cent of the total online market in Q2 2020 thanks to Redmi 8A Dual, Note 8 series and Redmi 8 series that contribute to more than three-fourths of Xiaomi’s total online sales. Samsung increased its share in online channels to 25 per cent, driven by its Galaxy M-series models.

OnePlus drove the shipments in the online premium smartphone segment, capturing more than 50 per cent share, followed by Apple with a 25 per cent share,” the report states. It further adds that six out of the top ten online models were from Xiaomi, followed by Samsung with three models.

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