The Raise And Fall Of The Online Smartphone Market

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The Raise And Fall Of The Online Smartphone Market

Back in 2014, Motorola started a trend in India with Moto G by marketing a phone completely on a on-line platform. Maybe very little did they imagine that it would modification the course of Indian smartphone business. Xiaomi was the next company to implement a similar concept with Xiaomi Mi3. Though the idea was new to Indians, both the phones received a overwhelming response. These phones are picture models, which can not be forgotten in close to future.

 

Soon alternative OEMs took a cue from Motorola and Xiaomi’s success and jumped on the bandwagon. It was a period once smartphone’s rate of growth started skyrocketing, so the market was ready to accommodate several players. OEMs from different countries invested with in lump sums to gain a stranglehold on the booming Indian smartphone trade. They sold devices with wafer skinny margins to produce a client base within the country. In addition, e-commerce websites ran several offers to lure customers to their platforms.

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situations wherever e-commerce websites crashed due to over traffic and other people had to attend for months to urge hands on the required device. It is also price noting that OEMs like Samsung, Apple, etc., who were at the start reluctant and against the strategy conjointly joined the party later. Now, Flipkart is one of the authorized on-line resellers of Apple product and Samsung manufactures some models to completely sell them on-line.

 

Reasons

At the same time, the growth of online smartphone market sales didn’t at the start go well with the offline retailers, as their sales were dwindling due to disruptive rating offered on e-commerce platforms. In December 2015, online market’s contribution in the smartphone sales was as high as 37th. But the party didn’t last long due to a myriad of reasons:

 

  1. Dried up discounts due to new laws.
  2. Companies like Samsung, Apple, etc., streamlined the rating of their product to build certain they’re sold at constant value on each offline and on-line channels.
  3. Strict rules in place for replacement or refund.
  4. OEMs like Xiaomi, Yureka, LeEco, etc., who used to sell mobiles solely on e-commerce platforms started marketing mobiles offline.
  5. Offline retailers like Reliance Digital, Croma, etc., also started tieing up with banks to provide discounts.
  6. Aggressive marketing by OEMs whose trust a lot of on offline channels.

 

OEMs like Oppo and Vivo have leveraged these shortcomings to their advantage. As a fallout, the combined market share of these companies soared to eighteen within the previous quarter. Also, Oppo alone pushed Xiaomi to the fourth spot in the market share. It is quite evident that online smartphone market is seeing a down trend that’s unlikely to be reversed shortly.