The report also shows that, despite the efforts towards multi-channel retailing by almost all vendors, the online channel continued its growth momentum boosted by new launches, offers and affordability schemes such as EMIs/cashbacks. This led to a 12.4 percent growth of the online channel with an overall share of 36.8 percent in this year’s second quarter.
The offline channel registered an 8.5 percent growth year-on-year boosted by new launches in Samsung Galaxy A series, marketing activities by vivo during IPL (Indian cricket league) and Xiaomi’s growing multichannel distribution.
The overall market stood at USD 159 in the three months to June 2019, with 78 percent of the market below the USD 200 price segment. However, the fastest growing segment was USD 200 – USD 300, with 105.2 percent year-on-year growth. The USD 400 – USD 600 was the second-fastest-growing segment with 16.3 percent annual growth in the quarter. OnePlus led this segment with a 63.6 percent share at the back of newly launched OnePlus 7 series. In the premium (USD 500+) segment, Apple outpaced Samsung for the leadership position with an overall share of 41.2 percent in the second quarter of this year, the report also found.
The study also indicates that the feature phone market fell to 32.4 million unit shipped in the 3-month period ended 30 June 2019, registering a drop of 26.3 percent year-on-year. This was due to lower shipments of 4G-enabled feature phones with 40.3 percent year-on-year decline in the June quarter. The 2G feature phone segment also declined as challenges remain for Indian brands along with small players facing heat owing to duty hikes on imports.
Xiaomi saw its shipment volume grow by 4.8 percent year-on-year in this year’s second quarter, with Redmi 6A and Redmi Note 7 Pro as the highest shipped models in the overall market. Xiaomi also maintained its dominance in the online channel with a market share of 46.5 percent, along with growing footprint in the offline channel which accounted for 39.5 percent of Xiaomi shipments in the second quarter of 2019.
Samsung registered a strong 16.6 percent year-on-year growth in the second quarter, fueled by newly launched Galaxy A series across low and mid-price segments. Galaxy M series (exclusive online till the end of 2Q19) saw price reductions which helped retain the 13.5 percent market share in the online channel in the second quarter for Samsung.
Vivo saw its shipments increase by 31.6 percent year-on-year in the second quarter of this year. Oppo saw its quarterly shipments grow 41 percent. The online channel accounted for 19.1 percent for the vendor-driven by online exclusive model K1.
Realme was second in the online channel with 16.5 percent market share in the 3-month period, along with ongoing efforts for expansion in the offline channel which accounted for 21 percent of its shipments in the quarter.
India smartphone market is expected to continue its growth trajectory in the second half of this year, but the consolidation of top few brands will continue. Report authors expect continued aggression by the online heavy brands and eTailers in the next few months fueled by new launches and price reductions of last few launches, leading up to the festive season in October.
According to a recent report from Strategy Analytics, India smartphone shipments grew 3 percent year-on-year to 35.6 million units in the second quarter of this year, from 34.5 million in the year-earlier period. Xiaomi retained first position, followed by Samsung in second place. The report also indicated that Vivo and Oppo lost marketshare, as Realme made significant gains.
