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Flipkart, Amazon estimated to sell 15 million smartphones during festive sales

The hybrid channel is expected to grow complimenting the online and offline strategy of brands The hybrid channel is expected to grow complimenting the online and offline strategy of brands
The hybrid channel is expected to grow complimenting the online and offline strategy of brands (Samsung)

According to a new report from Technology - Analytics Research Consulting, hybrid channel sales contribution for smartphone is set to reach an all-time high of 6% in OND’ 2020.

Flipkart and Amazon are estimated to sell 15 million smartphones during the festive sales period, according to the latest report from Technology - Analytics Research Consulting. The festive sales will account for 36.6% of the total estimated sales for the quarter OND’ 2020.

The rebound has helped elevate the projection for smartphone sales for this year. The total estimated sales for the year have been revised at 128 million units, up from the older estimate of 127 million.

ALSO READ: Breaking down Flipkart’s preparations for BBD 2020

For the fourth quarter, estimates for smartphone sales are up by 2 million units at 41 million. The report credits the positive sentiments propelled by online marketplaces. According to the report, Samsung and Realme are likely to be the top gainers. Micromax may also see an upward movement with its return. 

Xiaomi, Oppo and Vivo are expected to show a stable outlook. Brands such as Nokia, Lenovo and Motorola are likely to sell less. OnePlus and Apple are likely to gain as well, added the report.

According to the report, there are four primary reasons for a revival in demand for phones. The first is that people sentiments as many believe that the worst is over and are gradually spending on non-essential items. 

The second factor is the overuse of phones. The report said that the average usage of the smartphone has doubled of late. This is pushing a considerable user base to go for early replacements and upgrades. 

Another reason is pretty obvious – offers and discounts during the festive sales. 

“At the same time, there are leftover inventories of smartphones which includes flagships as well. Users are seeing the value in buying these phones where the discounts could go as high as 55-60%,” said the report. 

“The recent package announced by government encouraging its employees to spend on non-essential items is also going to benefit the smartphone as a product category,” it added.

 

Smartphone sales channel contribution
Smartphone sales channel contribution (techARC)

The Technology - Analytics Research Consulting report also pointed out the growth of hybrid channel sales.

While online platforms lead in rejuvenating the market, hybrid channel (o2o) will contribute an all-time high at 6% of the total estimated sales for the quarter. Pureplay online and offline channel contributions to be at 49% and 45% respectively, added the report.

Sharing the report highlights released by techARC, Faisal Kawoosa, Founder & Chief Analyst, said, “Covid-19 has taught us all-new ways of doing business. The pure play offline channel has gone hybrid and is using online to aggregate demand complemented by same-day home deliveries even in non-metro cities and towns. These Mom & Pop multi-brand stores are leveraging apps like WhatsApp, Instagram and Facebook to sell smartphones while users may remain reluctant to visit markets for purchase.”

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