The global coronavirus pandemic that has prevailed since early 2020 has affected sales projections in India’s smartphone market. The market has reportedly taken a dip, especially offline stores and outlets, as consumers continue to get their favorite brand products via numerous online outlets.
Presently, there is a lull in the rate at which smartphone brands open physical retail outlets, as most deployments have been stalled because of the negative growth outlook. Recent sales data show that the Indian smartphone market had experienced a general decline from its performance previously. Still, retail outlets with no online presence bore the brunt of the drop. This has warranted a downward review of the current growth forecasts, according to industry analysts.
A report by Counterpoint Research says the initial market share of offline sales has been downgraded to 55% due to the unimpressive numbers that have been recorded in the past two quarters. It is expected that the projections for the year will be reviewed further downwards, as the pandemic still bites hard on India. Other experts have given a similar outlook for the year.
There had been a gradual shift from the traditional offline sales model to e-commerce, but it seems this was further accentuated by the COVID-19 pandemic that saw much of the world under a forced lockdown for much of 2020. However, the offline retail outlets remain an integral component of the marketing strategy of some established brands in India like Xiaomi, Vivo, and others who continue to expand their physical presence in India through retail outlets. While small and medium shops continue to grapple with survival in the present circumstances, several offline channels have closed shop. This is projected to result in the loss of an estimated 50,000 jobs.
We expect the sales outlook to improve as vaccine rollout improves and the infection curve starts flattening out.
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