According to projections by Counterpoint Research, the average selling price of smart-phones this festive season is likely to be higher by 18%. While Counterpoint has not disclosed the volumes, it claims that records will be broken both in terms of volumes and value.
It may be just salesmen talking up sales, but the next five days are tipped to see purchases of mobile phones worth a whopping $1 billion or Rs 7,200 crore. The buying will happen on Flipkart and Amazon, currently hosting big festive season sales. Online channels will see around 42% of the total business in smartphones, which will hog the limelight this festival season. Customers can choose from more than 55 brands and 450 models and will be given sweet deals. These range from price cuts, cashback offers, no cost EMIs to other promotional offers.
Another research agency tech Arc has estimated that 19.1 million smartphones will be sold online out of the total 36 million expected during the October-December period. It also said this would be 53% of the total smartphones sold, first time in the country.
Just for perspective, around 124 million smartphones were sold in the country in calendar year 2017, which was a growth of around 14%. In calendar year 2018, the growth is expected to be higher at around 16-17%, though the research agencies have not projected any exact growth figure.
Broadly, one-third of the total smartphone sales occur during the festival season and this time this may be higher going by the build-up.
“Online channel contribution in terms of total smartphones sales this year in India is likely to hit 36%, the highest in the world, with a peak of 42% reached during this festive season in October. India is still under-penetrated market with just 35% of the population owning a smartphone. We believe the e-commerce will remain one of the attractive channels growing in preference for consumers as well as brand even though offline channel still occupies a larger pie of the overall smartphone market,” Tarun Pathak, associate director, Counterpoint, said.
In terms of brands, Counterpoint said China’s Xiaomi is likely to remain the market leader in the online channels as it is all set to capture over half of the total online market. “Its Redmi 5A, Note 5 Pro, Mi A2 and Redmi Y2 are now listed with aggressive price cuts, especially during the upcoming festive sales,” it said.
The research agency added that the contribution of Chinese brands to total online sales is estimated to cross the 70% mark this time. – Financial Express