Flipkart Continues Its Lead In the online smartphone sales in 2019
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Flipkart Continues Its Lead In the online smartphone sales in 2019

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Written by Saurav Bhagat
saurav1bhagat@gmail.com | Noida | Published on: June-12-2019 04:51 PM

E-commerce major, Flipkart emerged as the market leader in online smartphone sales with a 53% share of
the market in the past quarter. Amazon showed faster growth of 38% and now holds 36% of the market
share.

Flipkart dominates the budget smartphone segment and Amazon leads in the premium segment.

Online sales of smartphones in India have shown a growth of 17% year-on-year (YoY) in the concluded
quarter, reaching a level of 43% of all smartphone sales. Offline sales, on the other hand, showed a
decline of 4% from last year. This is contrary to the expected decline in smartphone sales post the new
e-commerce policy, which came into effect on February 1, earlier this year.

Flipkart is the leader when it comes to selling budget phones with 53% share (photo courtesy Business Standard)

Flipkart is the leader when it comes to selling budget smartphones with 53% share (photo courtesy Business Standard)

Under the National E-commerce Policy drafted by The Department for Promotion of Industry and
Internal Trade (DPIIT), platforms like Amazon and Flipkart can no longer have exclusive deals with
manufacturers for selling their product exclusively on their platforms. These e-commerce joints can no
longer stock more than a quarter of their inventory from a single vendor.

If the players had implemented the policy in its letter and spirit, there would be uniformity in prices
across online and offline channels, which is not really the case,” said Faisal Kawoosa, founder, techARC.
He also added that the policy has not had a major impact on online smartphone sales.
Anshika Jain, analyst, Counterpoint Research, a Singapore-based research firm, said “Brands took
advantage of their strong online reach to get rid of their excess inventory, before the change in India’s e-
commerce policy in February 2019.” Price cuts of popular devices and more launches drove online
channel shipments to the highest ever level in the quarter, she added. The growth of online sales is a
result of hefty discounts on popular models and an array of new launches.

Future Possibilities:

This shows that e-commerce sellers have managed to cope with the policy changes and that the policy
hasn’t impacted online sales. Smartphone manufacturers have also realized the need for a strong online
presence. Samsung which has traditionally been a major offline player launched an online exclusive M-
series of smartphones. Brands like Xiaomi, Oneplus, RealMe, etc. have flourished from online sales.  In
2018, Xiaomi (52%), Huawei (9%), Realme (9%), and Samsung (8%), were the top smartphones sold
online.

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About the author

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Saurav Bhagat

A chai-lover who loves to travel and learn new things.
Have a story to tell? I can be your pen :)

9717148734 | A-73, Hackerspace, Noida sector- 2 Noida UP 201301

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