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Wednesday, October 21, 2020

Amazon sees strong demand for ‘mid-range’ smartphones during the festive season

Amazon expects consumers to gravitate towards smartphones costing between Rs 15,000 and Rs 25,000 this deal season.

Written by Anuj Bhatia | New Delhi | Updated: October 6, 2020 4:55:45 pm
Amazon Great Indian festival, great indian festival october 17, Great Indian festival sale dates, Amazon offers great indian festival sale, smartphone deals great indian festival sale 2020The Amazon Great Indian Festival will begin on October 16 for Prime users.

Amazon, which is holding its annual Great Indian Festival starting October 17, expects consumers to gravitate towards smartphones costing between Rs 15,000 and Rs 25,000 this deal season.

“We did a survey among 60,000 respondents from tier-1 and tier-2 cities just to get a good insight on what the customer is looking for during the festive season. There is a very strong demand for mid-range phones between Rs 15,000 and Rs 25,000,” Manish Tiwary, vice-president, Amazon India, responded to a question raised by indianexpress.com during a Q&A session.

While shedding more light on the survey, Tiwary said brands like Samsung and Xiaomi have emerged as preferred phone brands with over 50 to 55 per cent of the respondents looking to buy a Samsung phone, followed by Xiaomi and OnePlus devices. According to Tiwary, OnePlus Nord, Galaxy M51 and the Redmi Note 9 are among the most searched keywords on Amazon.

Asked about how the smartphone as a category will fare during the festive season, Tiwary said, “I expect the demand to be strong and I am dovetailing what customers are telling us, the past behavior we have seen, and what the brands and sellers are offering. I think it’s going to be the perfect mix in terms of offering to our customers.”

Over the past few months, Amazon has seen the electronics category grow in India, which includes smartphones and laptops. With people mostly staying in and working from homes, they need laptops and phones to work from home.

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“If you just think about the number of screens in our homes, earlier normal households could have had a couple of phones and maybe a couple of laptops at best. Today, a normal household probably needs a certain number of laptops, because people are working and studying from home. It’s also meant that a lot of people are starting to upgrade,” he explains.

Tiwary says it’s not that the demand for smartphones and laptops has increased on Amazon, but a lot of people are now opting for accessories such as headphones and routers for social interactions.

“More new customers coming onto e-commerce,” he said, adding that “our Prime customers are buying more, so the frequency has gone up and the number of categories they are buying has gone up.”

Amazon Great Indian festival, great indian festival october 17, Great Indian festival sale dates, Amazon offers great indian festival sale, smartphone deals great indian festival sale 2020 38 per cent of respondents are looking to buy a mid-range smartphone between Rs 15,000 and Rs 25,000 this festauve season, according to the Great Indian Mobile survey.

With consumers avoiding going to physical stores for shopping due to the Covid-19, online retailers like Amazon have been trying to grow their reach in India, the world’s largest untapped internet market where smartphone penetration is still low compared to developed markets. The Seattle-based e-commerce retailer hopes consumers will prefer Amazon for their next purchase during the festive season.

As the Great Indian Festival kicks off starting October 17, Amazon has improved its delivery infrastructure by adding close to 200 delivery stations. With over 60 fulfillment centers across 15 states in India, Amazon says the wide network of fulfillment centers will help address the demand of consumers during the festive season.

But Amazon faces tough competition from Walmart-owned Flipkart, which has also announced a competitive festive sale event to draw online shoppers. The e-retailer will begin its Big Billion Day (BBD) sale on October 16. Both the Amazon Great Indian Festival and Flipkart Big Billion Day are expected to garner over $4 billion in sales, according to RedSeer Consulting.

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