The Indian smartphone market struggled in the first 12 days of the XXX-month long Christmas season, with sales volumes down 3% year-on-year. Entry-level smartphones were in low demand and had poor overall performance. According to Counterpoint Research, despite a decline in sales volumes, revenue rose 8% due to a 7% increase in sales of premium devices priced above Rs 30,000. economic times.
The report said consumer demand in the entry to mid-tier smartphone segment remained weak as buyers continued to hold on to their existing devices for longer due to limited 5G options, especially under Rs 10,000. Quoting Tarun Pathak, director of Counterpoint Research.
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Household appliances show moderate growth
Television and consumer electronics sales increased slightly by 2% to 3% in volume over the same period, with premium products leading the growth. According to the report, brands have responded to weak initial sales by increasing discounts on online purchases, with many offering discounts of 5 to 6 percentage points or more.
The apparel sector saw an upturn with same-store sales increasing 6-8% over the Christmas period, providing a much-needed boost to the industry.
E-commerce platforms had a slow start to their annual festive sale, which began on September 26, as consumers received their salaries and Diwali bonuses, traditionally considered an inauspicious time for new purchases. Demand recovered after Navratri as the Shradh period was over. says the report.
Despite the slow start, Counterpoint Research predicts that smartphone sales will increase 3% in volume and 9% in value over the holiday season.
Consumer goods makers continue to count on increased demand from Diwali, which typically marks India’s peak shopping season during the festive season. For many companies, this period often accounts for up to 35% of annual sales. As Diwali approaches, brands across the smartphone, electronics and apparel sectors are expecting a second wave of sales, driven by continued e-commerce promotions by major platforms such as Amazon and Flipkart, the report said. states.
First published: October 10, 2024 | 1:59pm IST
