With COVID-19 as a major impact, Indian users now prefer to buy smartphones online

IT House December 13 news that the prolonged COVID-19 pandemic, especially the large number of casualties caused by the second wave of the epidemic in 2021, has brought a sharp transformation to India's digitalization. According to Counterpoint Research's Market Lens survey of consumers, more than half of the country's smartphone consumers chose to buy online this year, up from about a third last year. Meanwhile, Counterpoint's analysis of smartphone shipments so far this year yielded similar data. In addition, according to Market Lens, entry-level flagship and premium segments became more active in 2021, with 15% of respondents coming from price ranges of INR 30,000 and above, compared to just 7% in 2020.

While COVID-19 has made smartphones an essential part of life, it has also pushed many offline consumers to online platforms due to activity restrictions. In addition, the reverse migration of knowledge workers from large cities to small towns has also played a key role in the spread of online channels. In addition to new consumers, there is also a strong stickiness between consumers who have already used online channels.

Transitioning to digital platforms requires people stepping out of a certain comfort zone. However, this anxiety has taken a back seat. With the impact of COVID-19 on offline markets, online shopping is clearly a safer (and sometimes unique) alternative. Of course, in addition to the causes of the epidemic, there are more reasons to choose online rather than offline. Respondents said unique discounts, multiple options and prices were the main reasons they preferred to buy smartphones online. We call this shift online digitalization because, in addition to their online channel preferences, people rely on youTubers and influencer influencers to get smartphone purchases. The survey results show a noticeable shift from relying heavily on word of mouth and friends/family to recommending smartphones in 2020 to relying on YouTube videos and tech opinion leaders in 2021. This change was catalyzed by social distancing and work-from-home scenarios triggered by COVOD-19.

Market Lens consumer research for 2020 and 2021

The impact of COVID-19 on consumers' smartphone purchase budgets is quickly disappearing:

In 2020, many respondents who buy INR 20,000 and above plan to lower their budget for their next smartphone.

In 2021, entry-level flagships and high-end segments are more prominent.

IT House has learned that according to the survey results, the share of smartphone users below 30,000 Indian rupees (about 2,524 yuan) has declined from 2020 to 2021.

As a result of working from home, respondents have more savings than usual. In addition, with more virtual connections online, smartphones have become an essential part of life. As a result, the market has changed, with a large percentage of smartphone users considering a higher price point when buying their next smartphone. In the 2021 holiday season in India, consumer demand in the mid-to-high-end market is high. In fact, from 2020 to 2021, the desire for high-end smartphone brands is already growing.

While more and more respondents are considering models in entry-level flagships and high-end segments, there are limited players in the smartphone market. This makes OEMs with currently smaller market shares more prominent.