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India’s largest online retailer Flipkart clawed back market share in the crucial smartphone category during the festive quarter, but rival Amazon India also made impressive gains in the segment in 2016. Smartphones are a critical category for online retailers as they contribute about a third of gross merchandise value ( GMV).
Flipkart accounted for over half the smartphones sold online with a51% market share in October-December 2016, while Amazon India cornered 33%, according to data from Hong Kong-based Counterpoint Technology Market Research.
Snapdeal’s share slipped to 13%, increasing its gap in the pivotal category. Over a third of all smartphones are sold online.
The move represents a comeback by Flipkart in the smartphone category, where its market share had slipped to 40% in the June quarter. This came as Amazon bagged several new launches from brands like Motorola , Lenovo and Xiaomi that were earlier exclusive to Flipkart.
But Flipkart, with Kalyan Krishnamurthy leading the category management function, won back new launches from these brands and a deal with Apple to be the official online seller, including the iPhone 7 launch in October.
Krishnamurthy, who personally closed tie-ups in the smartphone category, was elevated to CEO of Flipkart in January with incumbent Binny Bansal moving to the group CEO position.
“One year back there were a few brands which wanted to try out Amazon, but after looking at the volumes there they have started to come back. Online share of sales for Apple increased by 5x during the October-December quarter,” said Ayyappan R, Flipkart director leading the smartphone category. According to him, Flipkart has 70% market share in online smartphone sales.
These wins in the smartphone category helped Flipkart outperform Amazon India during festive sales. Flipkart said it sold products worth Rs 1,400 crore during a single day of its sale dedicated to smartphones.
Besides smartphones Flipkart says it has a market share of more than 75% in fashion. It owns the Myntra and Jabong fashion portals.
But Amazon India has also made significant headway in the category, as it became the fastestgrowing channel in 2016 with 78% year-on-year growth compared with Flipkart's 15%, according to Counterpoint data. Amazon India's gains in the category have been at the cost of Snapdeal primarily, said analysts.
“Smartphones have consistently been the top selling category on Amazon.in. In 2016 our smartphone business more than doubled (both in shipments and sales). The launch of Prime in the second half of 2016 provided an additional boost to the momentum," said an Amazon India spokeswoman.
Experts tracking the space said that both these players will now need to adapt to changing market, where smartphone markers will not remain loyal to just one platform.
"There is a changing strategy of brands and they don’t want to commit to one platform," said Counterpoint's senior analyst Tarun Pathak.
"Also earlier it was more in terms of dominating a large number of brands, but now the combined share of top five brands has also increased so online retailers can now channelise their sources better on players who are driving volumes."
Flipkart clinches 51% share in online smartphone sales, Telecom News, ET Telecom
Flipkart accounted for over half the smartphones sold online with a51% market share in October-December 2016, while Amazon India cornered 33%, according to data from Hong Kong-based Counterpoint Technology Market Research.
Snapdeal’s share slipped to 13%, increasing its gap in the pivotal category. Over a third of all smartphones are sold online.
The move represents a comeback by Flipkart in the smartphone category, where its market share had slipped to 40% in the June quarter. This came as Amazon bagged several new launches from brands like Motorola , Lenovo and Xiaomi that were earlier exclusive to Flipkart.
But Flipkart, with Kalyan Krishnamurthy leading the category management function, won back new launches from these brands and a deal with Apple to be the official online seller, including the iPhone 7 launch in October.
Krishnamurthy, who personally closed tie-ups in the smartphone category, was elevated to CEO of Flipkart in January with incumbent Binny Bansal moving to the group CEO position.
“One year back there were a few brands which wanted to try out Amazon, but after looking at the volumes there they have started to come back. Online share of sales for Apple increased by 5x during the October-December quarter,” said Ayyappan R, Flipkart director leading the smartphone category. According to him, Flipkart has 70% market share in online smartphone sales.
These wins in the smartphone category helped Flipkart outperform Amazon India during festive sales. Flipkart said it sold products worth Rs 1,400 crore during a single day of its sale dedicated to smartphones.
Besides smartphones Flipkart says it has a market share of more than 75% in fashion. It owns the Myntra and Jabong fashion portals.
But Amazon India has also made significant headway in the category, as it became the fastestgrowing channel in 2016 with 78% year-on-year growth compared with Flipkart's 15%, according to Counterpoint data. Amazon India's gains in the category have been at the cost of Snapdeal primarily, said analysts.
“Smartphones have consistently been the top selling category on Amazon.in. In 2016 our smartphone business more than doubled (both in shipments and sales). The launch of Prime in the second half of 2016 provided an additional boost to the momentum," said an Amazon India spokeswoman.
Experts tracking the space said that both these players will now need to adapt to changing market, where smartphone markers will not remain loyal to just one platform.
"There is a changing strategy of brands and they don’t want to commit to one platform," said Counterpoint's senior analyst Tarun Pathak.
"Also earlier it was more in terms of dominating a large number of brands, but now the combined share of top five brands has also increased so online retailers can now channelise their sources better on players who are driving volumes."
Flipkart clinches 51% share in online smartphone sales, Telecom News, ET Telecom
