You are here: Home » Companies » News
Business Standard

Smartphone makers rush to e-tailers

Samsung has created a dedicated online team that looks after distribution, promotion and strategy

Topics
Smartphone, E-commerce

Arnab Dutta  |  New Delhi 

Smartphone makers rush to e-tailers

The share of smartphone sales through e-commerce has risen from 15 per cent in 2014 to 30 per cent in 2015 because of lower online distribution costs.

The benefits are driving companies like Samsung, LG and Panasonic to focus on e-tail and analysts estimate the share of online sales will touch 35 per cent of the total by the end of this year.

Samsung has created a dedicated online team that looks after distribution, promotion and strategy. "We never had an online sales model till end-2015. But now we expect revenue from online sales to grow fast," a company executive said. Samsung has launched a few online-only smartphone models like the J3 and On series.

"We have chalked out significant investments towards digital marketing. Our online sales are about 12 per cent of total sales and we expect to reach 20 per cent by the end of 2016-17," said Pankaj Rana, business head, mobility division, Panasonic India.

LG is in the talks with e-commerce players like Flipkart and Amazon to start selling online. It does not distribute through such platforms now, according to Niladri Datta, head of corporate marketing, LG Electronics India.

Smartphone makers rush to e-tailers
"Last year, online sales soared due to new entrants like Xiaomi and LeEco," said Tarun Pathak, telecom analyst at Counterpoint Research. "In 2016, we are expecting some correction as they turn their focus offline," he added.

Apple, Xiaomi and LeEco have applied for permission to open single-brand retail outlets. Xiaomi now sells 90 per cent of its smartphones online. The company planned to increase the share of offline sales to 30 per cent in a few years, said Manu Jain, head of India operations, Xiaomi.

"With growing Internet penetration, our online sales now form 25 per cent of the total. In 2014, online's share was 15 per cent," said Shashin Devsare, executive director, Karbonn Mobiles.



THE VIRTUAL REALITY
  • Online smartphone sales in India surged significantly in the past two years - from 15% in 2014 to more than 25% in 2015
  • Industry and analysts expect it to touch 35% by end-2016
  • Chinese players like Xiaomi, LeEco and Lenovo drove sales in 2015; Samsung, Micromax remained stable
  • Samsung rejigged its top executives, formed dedicated online team headed by Asim Warsi, from January 1, 2016
  • LG is in advanced stage of discussions with major e-commerce players like Flipkart & Amazon to start selling online heavily soon

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, April 23 2016. 22:15 IST
RECOMMENDED FOR YOU
.