The popularity of smart devices in a living room setup is on the rise. Consumers are shifting from traditional devices to a more connected ecosystem. The effect of the prolonged presence of the pandemics and stay-at-home scenarios further catalyzed the need for smart home entertainment. As per our estimates, smart TV sales will likely reach more than 80% of the television sales in 2021, compared to only 67% in 2020.
Along with a connected ecosystem, there is an upswing in the availability of high-resolution content through different OTT platforms. As a result, smart TV and other connected accessories are taking the center stage in the living room setup. Audio is certainly playing a pivotal role in providing an immersive experience.
To further explore this interesting subject, we invited esteemed guests from the industry to be part of a virtual panel discussion. This webinar will be co-hosted by analysts from Counterpoint Research, will include panelists from Flipkart, Sony, Dolby, Xiaomi. We will be discussing the importance of audio in a living room environment. The discussion will be enriched by the unique perspective of the panelists on product design, marketing, purchase journey, post-purchase consumer behavior, and many more.
Watch the recorded version of the webinar by filling out the form below:
The smartphone retail average selling price (ASP) during the festive season will grow 14% to reach its highest ever at $230.
High consumer demand in the mid and premium segments will drive the sales.
New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – October 19, 2021
India’s festive shopping season this year kicked off during the first week of October when online platform giants Amazon and Flipkart announced their marquee Great India Festival and Big Billion Days sales. The season will end on November 4 with the Diwali festival.
Source: Counterpoint Research India Festive Season Tracker, 2021
Commenting on the overall market dynamics during the season, Senior AnalystPrachir Singh said, “The festive season has been driving smartphone sales in India due to high consumer demand during Dusshera and Diwali. This trend has been accelerated this year by the high pent-up demand backed by aggressive promotions in the mid and premium segments. We estimate that almost $7.6 billion worth of smartphones will be sold during the ongoing festive season. This highest ever number is coming at a time when the global smartphone industry is facing component shortages. As a result, OEMs have been forced to increase prices, which will have a higher impact on the mass market and budget segments.”
Source: Counterpoint Research India Festive Season Tracker, 2021
Research DirectorTarun Pathak said, “Although the growth in market value during the 2021 festive season is expected to be 1% YoY, the retail ASP will grow at 14% YoY. The overall consumer sentiment has been positive going into the festive season. Many consumers have decided to spend from their accumulated savings for something that is more personal. This trend will drive a faster smartphone upgrade during the festive season. Apart from this, the 2021 festive season is seeing higher trade-ins and aggressive EMIs that increase device affordability and help consumers bypass multiple price barriers. This has helped drive the sales of mid-to-high tier (>$200) smartphone models and, subsequently, the overall ASP. Many OEMs sensed this trend and brought out aggressive offers on premium devices. The relatively higher sales of premium segment smartphones also helped offset the losses in the mass market due to price hike.”
Background:
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
In 2020, Xiaomi spun off POCO as an independent company. Though POCO has separate management, it utilizes Xiaomi’s R&D capabilities, supply chain, logistics, and innovations. This type of support-sharing mechanism is quite common among smartphone brands. While we feel the move to go independent, in itself, will not have a major impact on POCO’s brand identity, it can certainly grow as an individual brand if it works towards its advantages. The brand offers key flagship features in the value-for-money segment for its tech enthusiast audience. POCO saw sales growth of 567% YoY in 2020, from a small base.
Some of the key highlights of the POCO’s journey so far are:
India: POCO’s biggest market
More than half of POCO’s global sales came from India in Q1 2021. Its leaner portfolio and aggressive marketing strategy quickly caught the attention of tech enthusiasts in the country. POCO smartly selected its online channel with Flipkart, as most of Xiaomi’s sales happen on Amazon.
POCO leverages the Flipkart platform to directly compete with other brands. POCO was in the second position on Flipkart and fourth in terms of total India online smartphone shipments in Q1 2021. In January this year, it conquered the No.1 position on Flipkart for the first time. This was mainly due to increased shipments of the POCO C3 and POCO M3 models from the budget segment. One of the key reasons for the success of its models on Flipkart is a clear differentiation within the lean portfolio addressing the needs of its target audience at different price points.
Hence, even with a lean set of models in its product portfolio, POCO had the highest number of models in the Top 10 shipments on Flipkart – POCO C3, POCO M3, POCO M2, and POCO X3 in the first, second, sixth, and eighth positions respectively in Q1 2021.
POCO’s success story in the Indian market is driven by demography – more than one-third of the country’s population is youth and tech-savvy, wanting to experience flagship-like features at affordable prices and a greater focus on CMF (Color, Material, and Finish) further helped to gain market share.
Global Expansion on the cards:
POCO’s youth-centric strategy played a vital role in scaling up its success in India. Now, POCO is expanding in markets like Europe, Thailand, Indonesia, Vietnam, and the Philippines. Southeast Asian nations like Indonesia and the Philippines have nearly one-third of the youth population in the 15-35 age group, just like India and favorable for POCO to grow. However, POCO has different strategies for different markets in terms of channel and product portfolios.
Channel Strategy – Key to Success
About three-fourths of POCO’s global sales lean toward the online channel driven by India’s Flipkart contribution. However, unlike India, POCO also operates offline in Thailand, Indonesia, Russia, Vietnam, and the Philippines.
More than 80% of sales in Indonesia, Thailand, Vietnam, and the Philippines happen offline. In Indonesia, due to geographical and logistical constraints with scattered islands, the online mode of delivery is not feasible. Also, most of the SEA markets are price-conscious and believe in local shops. The offline-active OEMs also played a major role in shaping this behavior.
As a result, POCO is offline heavy in these markets. It operates online here by adopting a hybrid channel strategy where one can order online and collect the device from the nearest local shop. Therefore, POCO is smart in localizing its channel strategy based on the geographic and demographic split, preference of consumers, and market dynamics. This attribute of POCO is a big positive for the brand.
Product portfolio: Lean and Diverse
Considering India as an example, POCO recently launched a 5G model in the country, the POCO M3 Pro, in the sub $250 price segment. But it has launched three 5G models outside India. The two 5G devices not launched in India are comparatively in a higher price range but it is likely to accelerate its 5G portfolio as well. POCO’s main target is to compete with other 5G smartphones in the budget segment. Therefore, POCO’s strategy for India will be locally driven and focuses on tech enthusiasts and young audiences.
Possible challenges and solutions for POCO
POCO may face some challenges in its journey to establish itself as an individual brand. POCO has rebranded a few of its models that carry the same DNA as Redmi. This strategy can be understood during the initial period when the brand needs support but can be avoided in the future.
As mentioned earlier, POCO focuses on localization strategy across the globe. With the changing demographics and geographic preferences, managing the resources for delivering and adapting to change may become a challenge with limited shared resources. Also, POCO is a new brand in few markets and consumers’ acceptance levels may take time to go up. POCO should also refresh its product portfolio regularly across all markets to maintain momentum. Additionally, with hardware getting commoditized, POCO will also, at one point in time, need to look into its efforts in software and adjoining product categories in the consumer electronics space.
Amazon held its highest ever 47% share among online channels
Flipkart led the sub-INR 10,000 segment with more than 50% share in online channels
Xiaomi remained the top online smartphone brand with a 44% share
Samsung grabbed 25% share in online channels, its highest ever share in a quarter
OnePlus was the top premium smartphone brand on Amazon
realme remained the top brand on Flipkart
New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –
August 13, 2020
Online Channels held a 43% share in Q2 2020 in the India online smartphone market, according to the latest research from Counterpoint Research. The increase in online channels share is due to a shift in consumer behavior, who are now preferring contact-less shopping experience and practicing social distancing. The quarter also saw Amazon reaching its highest ever share of 47% among online channels, compared to Flipkart’s 42%. The share of online channels in overall smartphone shipments reached 43% during the quarter as consumers preferred contact-less shopping experiences. Looking forward, we see online channels remaining strong this year and taking a 45% share in the Indian smartphone market in 2020. The COVID-19 pandemic had a huge impact on the current market scenario and innovative business models have emerged.
Commenting on the COVID-19 situation and market dynamics, Senior Research Analyst Prachir Singh said: “The COVID-19 pandemic had a huge impact on the overall smartphone market, April being a washout month. Online channels’ shipments also declined compared to the last year. However, due to the current circumstances, consumers are preferring online platforms. We have already witnessed pre-COVID level shipments at the end of Q2 2020 due to the pent-up demand created in the market by the nationwide lockdown. Brands are aligning their product as well as channel strategies to drive up volumes. Multiple financing options and attractive offers have made the devices more affordable for consumers. During the quarter, multiple brands adopted an online-to-offline (O2O) business model and hyperlocal delivery to help their offline channel partners.”
Commenting on the Q2 2020 findings, Research Analyst Shilpi Jain said: “Online channels remained strong in Q2 2020, grabbing a 43% share in the overall Indian smartphone market. Pent-up demand and changed consumer behavior due to the current circumstances, accompanied by attractive offers and promotions by online platforms, were the main reasons for the increased share. During the quarter, Flipkart organized Big Savings Day Sale to drive up volumes. Due to the preference for online channels, no offline-exclusive model was launched during the quarter. However, during the same period, 11 online-exclusive SKUs were launched.”
Commenting on the brand performance, Jain said: “Xiaomi remained the market leader in online channels with 44% market share. Xiaomi Redmi 8A Dual was the top model for the brand in online channels. Samsung was quite aggressive on online channels and increased its share to 25%, its highest ever share in online channels. Strong shipments of M-series smartphones led to this increase. realme remained the top brand on Flipkart. In Q2 2020, offline channels captured 57% market share. We believe that offline channels will fare better during the latter half of the year. Vivo remained the top brand in offline channels, followed closely by Samsung. Vivo Y91i was the top model for offline channels.”
Exhibit 1: India Online Smartphone Market Share by Channel – Q2 2020
Source: Counterpoint Research Market Monitor Q2 2020
Exhibit 2: India Online Smartphone Top Brands Share – Q2 2020
Source: Counterpoint Research Market Monitor Q2 2020
Market Summary for Q2 2020:
While smartphone shipments in the online segment declined by 46% YoY, the offline segment declined by 54% YoY.
Amazon became the top online smartphone channel for the first time, with a 47% share. Xiaomi, Samsung, and OnePlus drove the shipments for Amazon.
Amazon saw strong shipments of Xiaomi Redmi 8A Dual, Samsung Galaxy M30s, and Galaxy M31. Among the top ten smartphone models on Amazon, nine were from Xiaomi and Samsung.
The INR 15,000 – INR 20,000 price band contributed the most and reached its highest ever share on Amazon. Samsung Galaxy M31 and M30s were the top models in this price band on Amazon.
OnePlus remained the top premium smartphone brand on Amazon.
Flipkart’s share declined; however, the platform led the sub-INR 10,000 price band with more than 50% share in the overall online smartphone market.
realme remained the top brand on Flipkart. Among the top ten models on Flipkart, five were from realme. Newly launched Narzo 10 series drove the shipments for the brand.
realme, Xiaomi, Samsung, and Poco contributed most for Flipkart and accounted for more than three-fourths of its total smartphone shipments.
Poco maintained its strong performance in online channels in Q2 2020 as well. Poco X2 was the second-highest shipped model on Flipkart.
The top 5 brands captured more than 88% of the total online market.
Xiaomi alone captured more than 44% of the total online market in Q2 2020. Its Redmi 8A Dual, Note 8 series and Redmi 8 drove volumes, contributing to more than three-fourths of Xiaomi’s total online shipments.
Samsung increased its share in online channels to 25%, driven by its Galaxy M-series models. Top five online models for the brand were all Galaxy M-series and they contributed to almost 90% shipments for the brand.
Vivo hosted sales on both the leading online platforms, offering discounts on its models. The brand maintained its top position on offline channels, driven by Y91i and Y11.
Six out of the top ten online models were from Xiaomi, followed by Samsung with three models. Xiaomi Redmi 8A Dual was the best-selling device in Q2 2020.
OnePlus drove the shipments in the online premium smartphone segment, capturing more than 50% share, followed by Apple with a 25% share.
The comprehensive and in-depth Q2 2020 Market Monitor is available for subscribing clients. Please contact us at press(at)counterpointresearch.com for further questions regarding our latest research and insights, or press enquiries.
Flipkart and Xiaomi grew the overall smartphone demand whereas Amazon and OnePlus grew the demand in premium segment across online channels throughout the year.
New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –
Feb 23th, 2018
According to the latest research from Counterpoint’s Market Monitor service, India’s overall online smartphone shipments grew 23% annually, faster than the overall smartphone market in CY 2017. Seasonal sales events, aggressive promotions and value for money offerings from Chinese brands drove the demand for the online channel.
Commenting on the research findings, Karn Chauhan, Research Analyst at Counterpoint Research said, “The high-spec but low-cost, value for money smartphone models exclusively available only on online platforms were instrumental in successfully creating unprecedented demand throughout the year. The demand for such models was felt not only in online but offline channels as well due to walk-in customers asking for attractive models such as the Redmi Note 4. This has sparked an obvious channel extension strategy move to expand offline and capture the pent-up demand which is helping vendors such as Xiaomi which are able to offer such attractive models. In 2018, many brands will learn from Xiaomi’s growth from online to offline and will try to replicate a similar strategy.”
Commenting on the competitive landscape, Tarun Pathak, Associate Director at Counterpoint Research said, “Online channel contributes to more than one third of the total smartphones shipped in India during the year, which is the highest in the world. Flipkart led the online smartphone channel capturing more than half of the market in both volume and value terms maintaining its lead with Amazon. However, Amazon also able to grow share capturing almost one third of the market in volume and value terms. Indian online channel market has become a duopoly with Flipkart and Amazon capturing a combined 84% of the total volume and 87% of the total value.
Together Flipkart and Amazon were able to attract a lot of brands and consumers on their platforms by launching close to 100 exclusive model SKUs throughout the year. However, these platforms will have to adopt multiple strategies from increasing number of serviceable ZIP codes, hybrid offline stores and customer service kiosks to attract and gain more users to the platform.
Exhibit 1: India Online Smartphone Shipment Market Share by Platforms CY 2017
Source: Counterpoint Research Market Monitor CY 2017
Exhibit 2: India Online Smartphone Shipment Market Share by Brands CY 2017
Source: Counterpoint Research Market Monitor CY 2017
*Lenovo Includes Motorola
Market Summary:
Indian online smartphone market shipments contributed to more than one third of total smartphones during CY2017 and grew by 23% annually. Online sale events like “Flipkart’s Big Billion” and “Amazon’s Great Indian Sale”, promotions and offers drove the market.
We estimate that share of online channel continues to remain flat in 2018 as brands are adopting hybrid channel (Online+Offline) strategy to extend their reach throughout the country.
More than half of the online smartphone channel volumes as well as value were dominated by Flipkart in 2017, followed by Amazon and Mi.com. Online exclusive smartphones were the main contributors to online sale.
Flipkart and Amazon smartphone volume grew by 43% and 33%
Amazon contributed 63% to online smartphone premium segment shipments in CY 2017 driven by sales of Oneplus and Apple. Flipkart’s contributed to 31% of online smartphone premium segment.
Paytm witnessed modest growth in 2017, most of this coming from the huge discounts offered on high-ASP smartphones like iPhone. Paytm has its work cut out for 2018 and needs to strike exclusive launches and partnerships as offering discounts might not be a sustainable long-term strategy.
Top three online smartphone brands contributed to 75% of the online smartphone market.
Xiaomi, Lenovo and Samsung were the top 3 brands on Flipkart as well as Amazon.
Xiaomi, popular with name of Mi among users, led the online smartphone market with 44% share mainly due to its value for money offerings. Redmi Note 4, Redmi 4,4A were the top volume and value driver for the Chinese brand.
This is helped Xiaomi to make a strong comeback and dominate the Indian market (more here) In 2017 after slowdown in 2015 and early 2016.
The budget segment portfolio from Motorola Moto C and E and mid-segment Moto G helped Lenovo to maintain its second position.
The world’s third largest (more here) and China’s leading brand (more here), Huawei regained focus in this important market, pivoting back to online segment with its Honor brand after scaling back its offline segment strategy from late 2016/early 2017. Models such as Honor 9 lite, 7X and View 10 Pro will help Huawei gain some share this year.
Micromax is the only Indian brand which is present among the top five ranking driven by Canvas Infinity sales.
Xiaomi, Huawei and Apple were the fastest growing brands in the online segment with 219%, 126% and 105% annually in 2017.
Online smartphone market ASP was ₹11,500 growing 10% annually and is 5% higher than offline channel.
Close to 100 exclusive smartphones were launched on online platforms in 2017. Smartphone brands are also launching special edition smartphones like specific color variants.
Online-only brands are now expanding to offline for growth. Xiaomi is expanding its reach with Mi preferred partners, Mi homes while Motorola is expanding with Moto Hubs.
Exhibit 3: India Online Smartphone Revenue Market Share by Brands CY 2017
Source: Counterpoint Research Market Monitor CY 2017
The comprehensive and in-depth Q4 2017 Market Monitor is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.
The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.
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