India’s smartphone market struggled during the first 12 days of the XXX-month long festive season, with sales volumes dipping by 3 per cent compared to the previous year. Entry-level smartphones faced low demand, dragging down overall performance. According to Counterpoint Research, while sales volume declined, revenue grew by 8 per cent, driven by a 7 per cent rise in premium handset sales priced above Rs 30,000, as reported by The Economic Times.
The report quoted Tarun Pathak, director of Counterpoint Research, as saying that consumer demand in the entry to mid-tier smartphone segment remained weak, as buyers held on to their existing devices longer, particularly due to limited 5G options under Rs 10,000.
Consumer electronics show modest growth
Sales of televisions and household appliances saw a modest rise of 2-3 per cent in volume during the same period, with premium products leading the growth. Brands responded to slow initial sales by increasing discounts for online purchases, with many offering 5-6 percentage points more in discounts, the report said.
The apparel sector experienced a positive shift, with a 6-8 per cent increase in same-store sales value during the festive period, providing a much-needed boost to the industry.
E-commerce platforms had a subdued start to their annual festive sales, beginning on September 26, but demand recovered after Navratri, as consumers received paychecks, Diwali bonuses, and the Shraadh period ended, which is traditionally seen as an inauspicious time for new purchases, the report said.
Despite the slow start, Counterpoint Research projects a 3 per cent growth in smartphone sales volume and a 9 per cent rise in value for the entire festive season.
Consumer goods makers remain hopeful for stronger demand by Diwali, which typically marks the peak of festive season shopping in India. This period often contributes up to 35 per cent of annual sales for many companies. Brands across the smartphone, electronics, and apparel sectors are anticipating a second wave of sales as Diwali approaches, bolstered by ongoing e-commerce promotions from major platforms like Amazon and Flipkart, the report mentioned.
First Published: Oct 10 2024 | 1:59 PM IST
