Online channels share increase to 43% in India smartphone market as contact less shopping grows: Counterpoint – Times Now


Representative image

Representative image 









  • Online channels are predicted to remain strong this year




  • Consumers are preferring contact-less shopping experience and practicing social distancing




Online channels accounted for a 43 per cent share in Q2, 2020 in the India online smartphone market, and at 47 per cent, Amazon India reached its highest-ever share among online channels, compared to Flipkart’s 42 per cent in this quarter, said a new report by Counterpoint Research. The increase in online channels share is due to a shift in consumer behaviour, who are now preferring contact-less shopping experience and practicing social distancing. 

According to Counterpoint Research, looking forward, online channels are expected to remain strong this year and take 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 COVID-19 pandemic had a huge impact on the overall smartphone market, April being a washout month. Online channels’ shipments also declined compared to the last year. However, 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,” Prachir Singh, Senior Research Analyst, Counterpoint Research, said in a statement.

“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.”

During the quarter, Flipkart organised Big Savings Day Sale to drive up volumes. Due to the preference for online channels, no offline-exclusive model was launched during the quarter. However, during the same period, 11 online-exclusive SKUs were launched.

“Online channels remained strong in Q2, 2020, grabbing a 43 per cent share in the overall Indian smartphone market. Pent-up demand and changed consumer behaviour due to the current circumstances, accompanied by attractive offers and promotions by online platforms, were the main reasons for the increased share,” said Shilpi Jain, Research Analyst, Counterpoint Research.