india consumer electronics  market |india consumer electronics  market Report

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india consumer electronics market |india consumer electronics market Report

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Online consumer electronics refer to buying and selling of consumer electronic products over the internet. Although, this process was initially implemented in the west, but this industry has escalated at a remarkable growth rate in the recent past. Though players such as eBay and Letsbuy.com were present in the market for quite long, however the industry started gaining prominence only after 2011 when Flipkart ventured into the sale of electronics on its platform in 2011. Initially, due to significantly low internet population in the country and the skeptical nature of Indian consumers to buy electronic items online restricted the growth. Indian consumers gradually started buying products online and started to accept the online channel for buying electronic products. Flipkart adopted innovative marketing strategies including cash on delivery and easy returns to gain consumer confidence. The entry of Snapdeal and Amazon in this segment further facilitated the massive popularity of online consumer electronics in the Indian market.

The online consumer electronics market has displayed unprecedented growth in the last four years owing to rising smartphone and internet users, convenience of shopping online and lucrative discounts offered on products. Venture capitalists have displayed an undying interest especially in the market which is evident from the fact that they have invested millions of dollars during the span of last three years especially since 2012.

E-commerce in India has gradually transitioned to purchases made through mobile applications. Companies have also been offering exclusive discounts and cash back for transactions conducted through mobile applications to encourage the use of mobile apps for shopping. During FY’2015, the number of orders of consumer electronics made through mobile apps was recorded at 55.0%.

The economic growth in India has led to the emergence of growth opportunities for home and kitchen appliances market. Appliances such as air conditioners, refrigerators, air coolers, water purifier systems and others have become a necessity and increasing purchasing power of Indian masses is driving them to increasingly buy such products. The shopping of home and kitchen appliances online has progressed rapidly in large metro cities and is catching up in the smaller cities and towns. Heavy discounts on appliances and cash on delivery mode of payment offered by online retailers have proved to be very advantageous in driving sales. Exchange offers on products such as washing machines and food processors have also been beneficial in attracting customers towards the online market.

The online consumer electronics market in India is majorly dominated by a few large players, which have managed to gain dominance over the market in a very short span of time. It has been observed that the top three players in the market namely, Flipkart, Snapdeal and Amazon have collectively occupied 79.8% of the market, leaving very less scope for other smaller players.

The online consumer electronics market has displayed unprecedented growth in the last four years owing to rising smartphone and internet users, convenience of shopping online and lucrative discounts offered on products. Venture capitalists have displayed an undying interest especially in the market which is evident from the fact that they have invested millions of dollars during the span of last three years especially since 2012. However, most of the players in the industry are not yet profitable. Thus, sustainability of e-commerce companies in India is a debatable issue. The online medium has also made it possible to set up stores without investing in the physical infrastructure required for retail. Retail chains have also set up online stores to take advantage of the growing sales through online channel.

source :  https://www.kenresearch.com/consumer-products-and-retail/consumer-electronics/india-online-electronics-market-report/729-95.html

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