The Walmart owned e-commerce giant may be exploring ways to compete against Amazon’s growing private label sales in the country
Consumer electronics market in India
Goldstein Research, in one of its recent reports had forecast that the India consumer electronics industry is set to reach USD 17.2 billion by 2024. Euromonitor in its recent ‘Consumer Electronics in India’ had shared that portable consumer electronics and in-home consumer electronics are the two biggest consumer electronics categories in India by volume.
Grand View Research, in one of its reports has cited changing lifestyles of individuals, easier access to credit, and rising disposable incomes as reasons behind the growth in the India consumer electronics market. The report read, “Intentional reduction by the Government in the import bill, coupled with government and corporate spending is anticipated to complement the positive demand in this market.”
Taking on competitors
The recent move by Flipkart, if found out to be true, will help the company compete better against the likes of Amazon. USA based Amazon sells electronic product under its private label Amazon Basics in India. Though Flipkart’s private label Marq also does the same, it is unclear what Flipkart is aiming through with this partnership. It is to be noted here that Flipkart is already retailing washing machines and TV under Marq brand in India.
One explanation to the same could be the rising trend of electronics shopping through online portals like Amazon, Flipkart and Snapdeal. India Brand Equity Foundation (IBEF), in one of its recent reports, had said that consumer electronics sales were the biggest revenue contributor to e-commerce platforms. It had accounted for 48 per cent of total sales in the country. IBEF had also forecast that the e-commerce sector in India will grow to be worth $200 Billion by 2026.
It is but natural here that the likes of Flipkart and Amazon will try everything to capture bigger shares of this market. India is also counted among the fastest growing consumer electronics market in the world. It is to be noted here that despite slowdown in the global smartphone markets, India has been one in few where the smartphone segment has shown no signs of slowdown. Flipkart’s anticipated move to partner with the likes of Nokia and Motorola may be to address the smartphone market in the country.
It is also worth mentioning here that Reliance is also gearing up to enter the e-commerce market in India in full swing. Reliance already has a full-fledged offline consumer electronics retail stores through Reliance Digital and Reliance Jio.