While in most other markets the rise or fall of e-commerce
companies wouldn’t have affected the sales of any particular smartphone OEM,
the tale is quite a bit different when it comes to India. Here many
manufacturers choosing to go the online route, ink exclusivity deals with
certain online e-commerce sites. While this helps in bearing the advertisement
costs for the OEM and draws in even more potential customers for the e-commerce
giants, on the flip side, the sales of the smartphones get intrinsically tied
to the e-commerce companies.
In 2015, one in every three smartphones sold in India was
through online channels– testimony to the rapid rise of online sales model in
the mere 18 months of its existence. In this virtual land grab, there have been
three main competitors who among themselves have contributed to nearly 90% of
the total online smartphone sales. Flipkart with 47.5% of the total market
share has raced ahead of the others. Snapdeal and Amazon find themselves a
distant second and third with 22.3% and 21.5% of the market share respectively.
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