Online Retail Rules for Selling Smartphones, Study Finds
The contribution of online channels to the smartphone market was 40% in terms of sales units and 41% in terms of sales value in fiscal year 2021, up from 35% in 2020, according to a report by GfK market intelligence.
According to GfK’s market information, the category’s overall sales in terms of offline retail (point-of-sale) units increased by 4%, while online retail sales increased by 29%. % in the current fiscal year in October 2021 compared to 2020. This reflects growing consumer confidence. and the digitization of shopping journeys fueling the contribution of online retailing to overall sales in the smartphone category, according to the report.
Kartik Vasudevan, Sales Manager, GfK India, “As markets have shifted from the norm of ‘want’ to that of ‘need’, it is not just about the product / device, but about the ‘style. of life ”of the consumer. Consumers turned to technology to keep working and learning while staying at home, which triggered a structural change in shopping behavior. As the @home standard continues, consumers are eager to invest in products that promise quality and longevity.
Looking at price trends, point-of-sale data from GfK Market Intelligence showed a 56% unit-of-sale increase for premium smartphones ranging from Rs 30k to Rs 40k. Sales also increased by 41% for smartphones priced above 40,000, underscoring the growing demand for premium products in the Indian smartphone market.
In terms of geographic penetration of the smartphone market. Global sales of Level 5 and above smartphones representing less than 50,000 inhabitants saw volume growth of 11% in offline retail in the current fiscal year in October 2021/2020, followed by a 7% increase in level 3 cities.
Vasudevan added, “The smartphone market is still dominated by a price segment below 15,000 rupees, however, there has been an increase in sales of high-end products as mobile phones have essentially become the first point of contact. or digital device to access the Internet. For some consumers, this is sort of their first computer and with 5G leading the way, this trend could accelerate the price hike. “