Ecommerce market has touched a new milestone for Online sales of Smartphones and Televisions in October
- Smartphone online sales have reached a new milestone by occupying 55-60% of total category sales in October, whereas online sales of television account for 40-45 %. In 2018 during festive season contribution was 50% for smartphones and 25% for televisions
- The high internet user base of India accelerating the growth of eCommerce business. The question is what attracts the consumer to incline towards online retail shopping? Heavy discounts in festive sale, market penetration like expanding services in tier-3 and tier-4, faster delivery and zero cost finance offerings, competitive advantage by offering a variety of products to chose to make a habit to consumers for online shopping.
- Realme India CEO Madhav Sheth and One-plus Indian general manager Vikas Agarwal said that for smartphones, online has become a dominating sales channel this festive season and could account for almost 60% of total sales. The festive month is the most crucial period for the industry and contributes almost 30% of annual sales.
- In the Online television market, Xiaomi sold more than six lakh units of smart televisions in October whereas the average sale of television in the Indian market approx four Lakh units per month. As compared to offline market customers get the televisions at a much low price. Panasonic India CEO Manish Sharma said that eCommerce centric products offer their products at a much lesser price that’s why large omnichannel brands, television sales are now focusing on growing eCommerce business or shifted towards the online platform.
The biggest theme of the festive season was ‘value shopping’ as indicated by a large chunk of customers from Tier 2 cities who shopped online. Offering discount prices, faster delivery and reach to the customer, and return and refund policy attracting the customers towards online channels from offline. Looking this shift of customer and deep down in sale about 30-40% in Offline retails, Confederation of All India Traders (CAIT) and All India Mobile Retailers Association had strongly criticized eCommerce platform and said this consequence leads to a reduction in GST collection in October because huge discounts lead to lower tax payout.