The Indian e-commerce market has seen a massive boom after the pandemic hits. Flipkart a Walmart-owned Indian e-commerce platform secured the first position with a market share of 48% followed by the global e-commerce giant Amazon with 44% of market share. As per the recently published counterpoint report, Amazon is the fastest-growing e-commerce platform in the country with yearly growth of nearly 34% per year.
The extensive growth in the Indian e-commerce market has become a nightmare for the small retailers and sellers. According to the AIMRA (All India Cell Phone Retailers Association), more than 50,000 Indian smartphone retail shops have been shut down completely in just one and half years. Other offline businesses are also facing a severe financial disruption with the total decrease in sales from 50%.
Indian Smartphone Manufacturers are booming via E-commerce Platforms
The online smartphone business has remained in the top-most with a total 45% of smartphones sold via e-commerce. Xiaomi is the top-most brand with the highest online selling percentage of 40% of which the majority of smartphones are of Redmi and Poco. The second position held by Samsung of which 19% of smartphones sold online in which Galaxy M-series are on the top. Also, around one-third of the Amazon shipment is made by Samsung.
Realme which has become a selling smartphone brand on Flipkart also upholds 19% of total online selling smartphones. Realme smartphones are also receiving a massive growth rate of 27% per year. The online smartphone business trends continue with Vivo holding the fourth position whereas the upper mid-range smartphone manufacturer OnePlus has gained the 6th position in the Indian online smartphone business.
The total top-5 most selling smartphone brands captured around 82% of total shipments. The premium smartphone manufacturer such as Apple, OnePlus, and Samsung also received a yearly growth of 22%.
Major Smartphone Companies Tie-up with Flipkart, Amazon making the Offline Retailers Situation a Worse
The major Indian Smartphone manufacturer adapts a tie-up strategy with the e-commerce giants mainly with Flipkart and Amazon. In this strategy, the companies will offer their smartphone exclusively on their e-commerce platform first in which the majority of smartphones get sold out without even reaching to the small retailers. Companies also offer great discounts on the given product which hardly any retailer can offer.
During the end of 2019, the CCI also asked the companies to not offer great discounts to the selected products as it will ruin the Indian Offline market ecosystem.
Indian E-Commerce Market to be worth $99 Billion by 2024
The e-commerce company in India is seeing the Annual Compound Growth of around 27% from the year 2019-24. As per the ‘Indian Trend Book 2021’, the way e-commerce platforms have managed their growth in Pandemic, it seems that they will touch around $99 Billion Dollars. The reports have also certified that in the year 2025, these platforms will have around 220 million shoppers with the Grocery and Fashion driving out most of the sales.
The most significant reason for the growth of the e-commerce industry is the rise of users from the Tier-2 and Tier-3 type cities due to the pandemic. The Indian Government also in the full mood for making the digitalized economy that will be valued at more than 1 trillion by 2025. Recently, the GOI (Government of India) has launched several platforms to help the local shopkeepers and retailers connecting digitally. The recent reforms in the new e-commerce bills make the way clear that the government itself wants to connect the economy digitally.