Categories
Tech

Indian Smartphone Market Likely to See 40% Recovery in Second Half of 2020: Report

After going through disruptions in supply chain and curtailed domestic production, the India smartphone market is now showing encouraging signs of revival that sets it on a potential course for market recovery for over 40 per cent in the second half this year, according to a new report. Over the short-term, the mobile market will improve in mid-Q3, spurred by early online sales festivals, setting the smartphone market on a potential path to recovery towards the all-important festive season.

During this period, smartphone brands will focus on showcasing their consumer-centric value propositions, focusing more on hyperlocal delivery models, and launching more 5G-ready smartphones, according to market research firm CMR’s ‘India Mobile Handset Market Review Report.’ CMR’s current estimates point to better performance for the India smartphone market in H2 2020, with the market anticipated to recover by more than 40 per cent in comparison to the first half.

“As a consequence of the pandemic, Q2 2020 was, in essence, a lost quarter. While the mobile handset industry faced multiple challenges with respect to their supply and demand-side dynamics, the industry looks set on the path to a potential recovery in the coming months,” said Amit Sharma, Manager-Industry Intelligence Group, CMR. The initial consumer demand in the unlock phase was driven predominantly through online channels and driven by a need for urgent replacements.

“Facing up to the pandemic, smartphone brands debuted innovative hyperlocal delivery models, some of which have the potential to gain permanence,” Sharma added. The path to potential recovery will be led by pent-up consumer demand, driven by a need for upgrades. In the run-up to the festive season, consumers will seek to go for meaningful value propositions that bring devices and compelling content ecosystem offerings, together.

“This, coupled by smartphone brands bringing more value for money offerings and backed by aggressive messaging, will potentially drive the market,” said Sharma. Thus far, a key challenge for the smartphone market in India to grow has been the inability to offer value propositions that will help feature phone users to migrate to smartphones. “We believe recent announcements, such as the Jio-Google deal, augur well for the future of the mobile handset industry in India, and in potentially enabling the migration of feature phones to smartphone users, with its focus on driving affordability,” said analyst Anand Priya Singh.


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Categories
Tech

E-commerce Sector in India Posts 90% Recovery as Sales Volumes Return to Pre-Lockdown Levels: Report

Sales volume in the e-commerce sector in India has recovered by over 90 per cent as compared to its pre-lockdown level, said a report on Monday. The sector is predicted to fully recover and achieve the pre-lockdown order volume by the end of this month, according to the consumer trend analysis by Unicommerce, one of India‘s leading e-commerce focused supply chain SaaS (software-as-a-service) platform.

“The e-commerce sector continues to lead the growth for the overall economy of India. The increasing change in consumer behaviour to prefer online shopping has come as a great surprise and relief for online sellers and marketplaces,” Kapil Makhija, CEO, Unicommerce said in a statement. “With the current pace and recovery rate, we are positive that the sector will fully recover in the next couple of weeks.”

Analysing the overall category growth, consumer electronic appliances category, excluding smartphones, have witnessed the strongest growth than any other category. The sector has not just recovered its pent up the volume but also shown great improvement with over 45 per cent growth in the overall order volume compared to pre-lockdown levels, said the report. However, the average cart size has decreased by around 5-10 per cent, as people are ordering more low value required to operate from home.

As most of the organisation continue to work from home, there has been a significant surge in demand for products that will help professionals operate easily from homes such as USB cables, extension cords, trimmers and wifi routers to name a few. On the other hand, the online fashion sector has seen an overall 70 per cent recovery rate compared to pre-lockdown levels. However, the average cart size has decreased by around 25 per cent. This signifies that the demand for high-value products is significantly less as compared to affordable products.

The popular products in the category are nightwears and comfortable home-wear that have seen the maximum traction. In fact, few sub-categories in fashion such as kids apparels have witnessed over 100 per cent growth already in the last 15 days compared to the pre-lockdown levels, said the report.


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