Over the past year, Amazon has seen nearly 30% growth in the smartphone category, with sales driven not only by Tier I, but also by Tier II and III cities
Smartphones have been one of the fastest growing categories at Amazon, but do you know which segments (flagship, mid-range, or budget) have seen the most growth over the past year? How does the demand of Tier II cities and communities compare to the metros? How has customer behavior changed since the outbreak of the pandemic? The answers to such questions are best answered by the man in the hot seat: Nishant Sardana, Director – Mobile Phones & Televisions, Amazon India.
The platform offers a diverse selection of all top brands in all price ranges. He says: “With our constant focus on providing the best possible care for our customers, we have delivered smartphones to more than half a million customers within (average) 12 hours of purchase and achieved a 96.5% delivery promise on our platform according to Amazon- Data ended December 2021. We have built a strong operational infrastructure that helps us serve customers in the most remote regions of India.”
Sardana reveals that Amazon has seen nearly 30% growth in the smartphone category over the last year, with sales being driven not only by Tier I cities but also by Tier II and III cities. More and more customers are opting for mid-range and premium devices with better build quality and specs as they continue to spend more time on their smartphones (work from home, video calls, OTT content or play online games). “We’ve seen customers gravitate toward devices that are ideal for multitasking and can also manage work, entertainment, and everyday use cases. Unit growth over the past year was led by the 20,000-30,000 and 30,000-50,000 price segments, which saw year-over-year growth of 52% and 61%, respectively. This was due to post-Covid demand for high-performance smartphones,” he says, adding: “Redmi Note series, OnePlus, Samsung M-series, iQOO and Tecno smartphones drove the growth of new customers as well as upgrades to the latest ones technology ahead.”
Amazon is seeing strong growth in the mid-range (>20,000+) category as more customers have switched to a mobile device with better build quality and performance. Sardana points out that OnePlus is the fastest growing brand on Amazon.in, with the expansion of the OnePlus Nord series in the <25,000 price segment being very popular with the launch of the OnePlus Nord CE. "In 2022, we expect the category to grow even faster due to the launch of the 5G segment as major brands unveil new models and launches."
While the pandemic accelerated the adoption of technology and led to a structural change in online shopping behavior, the Amazon India executive reveals that higher online grocery ordering, content consumption on OTT platforms, online payments and gaming are affecting many customers persuade them to choose more premium devices. “Smartphones with a stronger processor and good storage space, strong battery, larger screen size with super-smooth AMOLED displays are preferred the most. We’re also seeing customers opting for 5G-enabled smartphones as awareness grows of the upcoming 5G rollout,” he adds.
Amazon India saw strong demand from Tier II and smaller cities as the e-commerce major’s delivery and fulfillment networks expanded for faster delivery. “Three out of four smartphones sold on Amazon.in are purchased by customers from Tier II cities and communities. Customers, even living in remote parts of the country, trust us with safe and reliable deliveries. In fact, more than half of smartphone orders on Amazon.in come from Tier III or smaller cities,” he adds.
BUILD UP TRUST
- Amazon is seeing strong growth in the mid-range smartphone category (>20,000+).
- Redmi Note series, OnePlus, Samsung M series, iQOO, Tecno smartphones drive the growth of new customers
- Three out of every four phones sold are picked up by customers from Tier II cities
- Revenue growth led by the 20K-30K and 30K-50K segments, which grew 52% and 61% year over year, respectively
- 5G-enabled phones remain at the top of the shopping list
- OnePlus is the fastest growing brand in the <25k segment, with OnePlus Nord CE being very popular
https://www.financialexpress.com/industry/smartphones-selling-like-hot-cakes-on-amazon-but-which-ones-sell-the-most/2468433/ Smartphones are selling like hot cakes at Amazon: but which ones are selling the most?