Propelled by Festive season sales, more than half of the Smartphones (53%) will be sold online during Oct-Dec 2018

  • 19.1 million Smartphones expected to be sold online during OND’18 period.
  • Smartphones alone to contribute US$ 3.67 billion (IN₹ 27,094 crore) to digital commerce during the period.
  • Online 3rd party stores like Amazon and Flipkart to contribute 85% of the online smartphone sales at US$ 3.12 billion (IN₹ 23,030 crore).
  • Flipkart offering more exclusives in terms of choice than Amazon.  Amazon’s revenue potential hinges on OnePlus 6T success.

Gurugram – Monday October 8, 2018: A report on online sales of Smartphone during festive quarter of Oct-Dec 2018, released by techARC today reveals that 19.1 million (53%) of the 36 million smartphones expected to be sold during period, will be sold online.  This is for the first time ever that online contribution will be more than the legacy offline sales.

The report further reveals that a total of US$ 6.36 billion (IN₹ 46,890 crore) worth of Smartphones will be sold during the period.  Online sales will contribute 58% or US $ 3.67 billion (IN₹ 27,094 crore).

Faisal Kawoosa, Founder and Principal Analyst, techARC, on the release of the report said, “This is a great opportunity for 3rd party digital commerce platforms like Amazon and Flipkart, which will take maximum pie of the potential. 85% of the online smartphone sales will be through such platforms.”

Comparing the two arch-rivals, Faisal added, “Flipkart has an edge in terms of the choice it offers in terms of models exclusively available with it.”

The report further highlighted the following key trends that will propel the online mode of selling of Smartphones during the festive quarter: -

  • Both Amazon and Flipkart are having their Great Indian Sale Festival and Big Billion Day respectively starting this week.  The digital commerce giants have announced huge marketing spend and Smartphones are among the ‘anchoring’ products expecting high volume sales during the period.
  • Leading Smartphone brands have a number of flagship launches, either announced or in the pipeline to make the maximum of the opportunity.  These are mostly available exclusively online.
  • 3rd party digital commerce stores have increased their reach significantly over the past year. Now they are delivering to smaller towns and cities as well.  Both Amazon and Flipkart are delivering to over 20,000 locations across the country.
  • Online selling of Smartphones has started picking up in the entry to mid ranges of Smartphone markets as well.  Contrary to earlier trend, people are buying Smartphones of Rs 7,000 and above as well via online mode.  This brings volumes to the online channels.
  • The traditionally offline only or offline intensive brands like Samsung, Oppo and Vivo have also diluted their channels strategy and have put up select models / range of models online for sales.  Further, some recently launched brands like Poco and Realme have also added to the online action.

Research Notes

Below are the important explanations about this research to help understand the scope and objective better.

  • This research estimates sales in terms of revenues and units for the period of Oct-Dec 2018.
  • Only models and brands launched after July 2018 and expected to be launched by Oct end, have been considered for this research giving weightage to the latest models with highest probability of selling most, online.
  • Factors like promotions, offers and discounts have also been evaluated in this research.
  • Only Amazon and Flipkart, have been analysed in the 3rd party online selling platforms for this research.
  • The estimates and calculations are based on techARC’s own internal assessment and methodologies.
  • These have been validated through Delphi technique with key industry leaders.

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