\"\"
<\/span><\/figcaption><\/figure>Smartphone brands who have invested in offline retail have shown a stable business outlook.

Apple<\/a> recently announced its decision to open retail stores in Mumbai, which is the country's first retail masterpiece from the smartphone industry disruptor. Apple stores get recognised as landmarks and architecture marvels and a must visit for the city people. The Mumbai store has already caught the attention of the stakeholders of the smartphone industry as well as the general public. But, what is the business sense of opening up a retail store when it continues to be the most aspirational brand for smartphones, tablets, laptops and other products Apple manufactures that too, at a time when its growth in India has been at an all-time high.

Market watchers like us are aware of the larger Apple India story, where opening up of a retail store is an integral puzzle of its commitment to India and there have been a lot of negotiations between Apple and the government as per media reports. But does it merit any business sense also?

A look at the Indian smartphone industry journey so far says there was a trinity that started working from 2015 and everybody thought this is the future of smartphone retail in the country. The trinity was the emergence of asset-lite, investment-lite smartphone brands, sprouting of e-commerce and the introduction of 4G in the country. This all of a sudden changed the dynamics of smartphone retail in the country where at its peak 6 out of every 10 smartphones were sold online through e-commerce platforms and some smartphone brands through the D2C platforms though the number of such sales were limited.

But now when we glance through the journey of such ‘over-the-top’ smartphone brands, which made very little investments in offline retail, it has been a roller - coaster ride for them. These brands like
Redmi<\/a>, Realme<\/a>, OnePlus<\/a> and a few more have seen the maximum volatility in their business performance over these years.

Compared to this, brands like
Samsung<\/a>, Apple, Vivo and OPPO<\/a> remained focussed on offline retail right from the beginning. The result of this focus is that these brands have shown consistency and sustainability in their business operations. For example, Samsung’s market share hovered around 20% by volume during this period. Similarly, Vivo earned 15-16% and OPPO had a market share of 10-11% . So has Apple been able to grow in India with equal focus on online and offline channels ? Now with the retail expansion, it should be able to further consolidate its position in the market.

The D2C trend in the online channel is an indicator of diminishing value that the larger brands are deriving out of marketplaces. This is among the reasons that brands are investing in the D2C model across sectors. The takeaway here is that for e-commerce marketplaces, it's not a concern which product is getting sold, they are more concerned about the
GMV<\/a> (Gross Merchandise Value) which could be coming from any product based on demand, consumer preferences and changing online buying behaviour of customers. For years, since e-commerce started in India, smartphones were one of the main GMV contributors for the marketplaces. This was in return benefiting the ‘over-the-top’ smartphone brands which saw growth through this channel without making upfront investments in retail.

Post Covid-19, we have seen a shift in online buying preferences of consumers. First the situation pushed them to start buying essentials including medicines, provisions and groceries through the online mode. Now, it has become more of a habit. There is an interesting consumer behaviour emerging with regards to online buying. Consumers find value in buying essentials through online mode as such shopping is monotonous and there is no ‘retail therapy’ effect. It’s a fixed routine shopping list that needs to be bought, most of them from specific brands. For instance, someone who used to buy a particular brand like Aashirwad flour, will buy the same brand for taste preferences. Contrary to this, since the situation has returned to its original state, consumers are finding reasons to go out shopping to buy electronics, apparels and similar occasional products. They plan it out over the weekend, preferably also dine outside and make it an occasion to bring a change in their routine life. In this changing scenario, offline retail becomes important for products like smartphones.

Read also<\/h4>
<\/a><\/figure>
India set to become a leader in global mobile phone market: Vaishnaw<\/a><\/h5><\/div>
<\/a><\/figure>
Vivo to invest Rs 1100 crore more in India towards local manufacturing, retail and local R&amp;D<\/a><\/h5><\/div>
<\/a><\/figure>
Apple to open Mumbai retail store on April 18, Delhi store on April 20<\/a><\/h5><\/div>
<\/a><\/figure>
Apple continuously expanding business operations in India: Goyal<\/a><\/h5><\/div><\/div><\/div>
The channel, like a shrewd salesperson, will focus on achieving targets and since e-commerce platforms have GMV to achieve, it doesn’t matter to them to stay focused on a particular product, in this case smartphones. They will sway with the tide. This is a common practice among salespeople as well who have multiple products or markets to serve. They lose focus over a period of time on all the allocated products and markets and concentrate on achieving their numbers from what is working for them. Contrary to this, the offline channel is more focused. The retailers as well as the brands make investments specific to product categories. They can only make money by selling the product they are aligned to which in our case is a smartphone.

While brands are going D2C in the online mode, they will have to invest in offline retail as the model of ‘over-the-top’ retailing will not reward the same way as it did in the past. Be it the business performance of the smartphone brands or the changing customer preferences, there is a strong case for investing in offline retail and increasing proximity to the market where customers are expected to find their best smartphone fitting their requirements and their budgets. We have seen how the smartphone industry performed in 2022, and it has not been a great start for 2023. There is an immense opportunity of 5G upgrade awaiting which is likely to take-off in the second half of 2023 when the affordability portfolio across brands widens as well as the live network expands through all major cities and towns of the country. But there are still some important questions like whether consumers will upgrade as there is no strong pull for switching to 5G without any killer use case of 5G. In this uncertainty, smartphone brands shall have to rely on a channel that gives them assured and sustained business than a highly volatile outlook which they cannot afford in 2023.

As Apple’s Mumbai retail store kicks off the conversation around modern retail in India, there is a deeper business need for smartphone brands to go big for offline retail and consolidate their performance at a stabilised level rather than roll the dice over e-commerce marketplaces and wait for the outcomes.

(Faisal Kawoosa is Founder & Chief Analyst at Techarc)
<\/strong>
DISCLAIMER: The views expressed are solely of the author and ETTelecom.com does not necessarily subscribe to it. ETTelecom.com shall not be responsible for any damage caused to any person\/organisation directly or indirectly.<\/em>

<\/body>","next_sibling":[{"msid":99499658,"title":"Brazil paves way for semiconductor cooperation with China","entity_type":"ARTICLE","link":"\/news\/devices\/brazil-paves-way-for-semiconductor-cooperation-with-china\/99499658","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":99511176,"entity_type":"ARTICLE","title":"Telecom Diary: The era of over-the-top smartphone retail is over","synopsis":"Market watchers like us are aware of the larger Apple India story, where opening up of a retail store is an integral puzzle of its commitment to India and there have been a lot of negotiations between Apple and the government as per media reports. But does it merit any business sense also?","titleseo":"devices\/telecom-diary-the-era-of-over-the-top-smartphone-retail-is-over","status":"ACTIVE","authors":[{"author_name":"Faisal Kawoosa","author_link":"\/author\/479257943\/faisal-kawoosa","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479257943.cms?width=100&height=100","author_additional":false}],"analytics":{"comments":0,"views":854,"shares":0,"engagementtimems":4082000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-04-15 19:15:47","lastupd":"2023-04-15 19:15:49","breadcrumbTags":["apple","samsung","redmi","realme","oppo","oneplus","gmv","devices","apple in mumbai","smartphones in india"],"secinfo":{"seolocation":"devices\/telecom-diary-the-era-of-over-the-top-smartphone-retail-is-over"}}" data-authors="[" faisal kawoosa"]" data-category-name="Devices" data-category_id="12" data-date="2023-04-15" data-index="article_1">

电信日记:顶级智能手机零售的时代已经结束了

市场观察人士像我们都知道的大苹果印度故事,开放的零售商店在哪里承诺印度和不可分割的难题有很多苹果和政府之间的谈判/媒体报道。但它也值得任何商业意义吗?

费萨尔Kawoosa
  • 更新于2023年4月15日下午07:15坚持
阅读: 100年行业专业人士
读者的形象读到100年行业专业人士
智能手机品牌在线下零售投资显示稳定的商业前景。

苹果最近宣布的决定在孟买开设零售商店,这是该国第一个零售智能手机行业粉碎机的杰作。苹果商店得到认可的标志性建筑和建筑奇迹,必须访问城市人。孟买商店已经引起了智能手机行业的利益相关者的关注以及公众。但是,什么是开放的商业意识零售商店当它仍然是最向往的品牌智能手机,平板电脑,笔记本电脑和苹果其他产品生产,在其增长在印度已经空前高涨。

广告
市场观察人士像我们都知道的大苹果印度故事,开放的零售商店在哪里承诺印度和不可分割的难题有很多苹果和政府之间的谈判/媒体报道。但它也值得任何商业意义吗?

看看印度智能手机行业的旅行到目前为止有三位一体说,从2015年开始,所有人都认为这是未来的智能手机零售。三位一体是asset-lite的出现,investment-lite智能手机品牌,发芽的电子商务和4 g的引入。这突然改变的动态智能手机零售的国家,在其6每10智能手机销售的高峰期,甚至在网上通过电子商务平台和一些智能手机品牌D2C平台虽然这种销售的数量是有限的。

但现在当我们浏览的旅程“顶级”智能手机品牌,这使得在线下零售投资很少,这是一个滚子-急剧升高。这些品牌红米,Realme,OnePlus和更多的最大波动近几年来在他们的业务性能。

相比这个,等品牌三星、苹果、活体和相对应的人仍然关注线下零售的开始。这种专注的结果是,这些品牌显示在他们的业务操作的一致性和可持续性。例如,三星的市场份额在20%左右徘徊在此期间按体积。同样,体内获得15 - 16%和朋友有10 - 11%的市场份额。所以苹果能够生长在印度等于关注线上和线下渠道?现在零售扩张,它应该能够进一步巩固其在市场上的地位。

广告
D2C趋势在线渠道价值递减是一个指示器,大品牌是推导出市场。这是品牌,其中一个原因就是投资D2C模型跨部门。问题在于电子商务市场,它不是一个问题,产品销售,他们更关心的GMV(商品总额),基于需求可能来自任何产品,消费者的偏好和对客户在线购买行为变化。多年来,电子商务开始在印度以来,智能手机市场的主要GMV贡献者之一。这是在返回受益“顶级”的智能手机品牌,通过此通道不作前期投资增长零售。

Covid-19后,我们看到了一个在线消费者的购买偏好的转变。第一个情况使他们开始购买必需品包括药物、规定通过在线模式和杂货。现在,它已经变成了一种习惯。有一个有趣的新兴关于网上购物消费者行为。消费者通过在线模式中找到价值购买必需品等购物是单调的,没有“购物疗法”的效果。固定的日常购物清单,需要买的,他们中的大多数来自特定的品牌。例如,用于购买特定品牌的人喜欢Aashirwad面粉,将购买同一品牌的口味偏好。与此相反,因为局势已恢复到原来的状态,消费者正在寻找理由出去购物买电子产品,服装偶尔和类似的产品。他们计划在周末出来,最好还吃饭外,让它一次在他们的日常生活带来改变。在这个不断变化的场景中,线下零售成为重要的产品,如智能手机。

读也


通道,就像一个精明的推销员,将专注于实现目标,因为电子商务平台有GMV实现,不管他们专注于一个特定的产品,在这种情况下,智能手机。他们会有潮的影响。这是一个常见的做法在销售人员以及多个产品或市场服务。他们失去了焦点在一段时间内所有的分配产品和市场,专注于实现他们的数字从是什么工作。与此相反,线下渠道更为集中。零售商以及品牌投资特定产品类别。他们只能靠卖产品赚钱是一致的,在我们的案例中是一个智能手机。

虽然品牌会D2C在在线模式中,他们将不得不在线下零售投资模型的“顶级”零售不会以同样的方式回报过去一样。智能手机品牌的业务性能和客户偏好的变化,有一种强烈的线下零售和投资价值越来越接近市场客户预计将在哪里找到他们的最佳智能手机配件需求和预算。我们已经看到如何执行的智能手机行业在2022年,这2023年没有一个良好的开端。有一个巨大的5 g升级等待的机会可能在2023年下半年起飞时负担能力组合在网络品牌扩大以及生活扩展通过所有主要国家的城市和城镇。但是仍有一些重要问题如消费者是否会升级没有强劲拉动开关5克没有任何杀手5 g的用例。在这种不确定性,智能手机品牌必须依赖于一个通道,让他们保证和持续的业务比一个高度动荡的2023年前景,他们负担不起。

孟买作为苹果的零售商店开始谈话围绕现代零售在印度,有一个更深层次的业务需要对智能手机品牌大线下零售和巩固他们的表现在一个稳定水平而不是掷骰子的电子商务市场,等待结果。

(费萨尔Kawoosa Techarc创始人兼首席分析师)

免责声明:作者的观点仅和ETTelecom.com不一定订阅它。乐动体育1002乐动体育乐动娱乐招聘乐动娱乐招聘乐动体育1002乐动体育ETTelecom.com不得负责任何损害任何个人/组织直接或间接造成的。


  • 发布于2023年4月15日下午07:15坚持
是第一个发表评论。
现在评论

加入2 m +行业专业人士的社区

订阅我们的通讯最新见解与分析。乐动扑克

下载ETTelec乐动娱乐招聘om应用

  • 得到实时更新
  • 保存您最喜爱的文章
扫描下载应用程序

\"\"
<\/span><\/figcaption><\/figure>Smartphone brands who have invested in offline retail have shown a stable business outlook.

Apple<\/a> recently announced its decision to open retail stores in Mumbai, which is the country's first retail masterpiece from the smartphone industry disruptor. Apple stores get recognised as landmarks and architecture marvels and a must visit for the city people. The Mumbai store has already caught the attention of the stakeholders of the smartphone industry as well as the general public. But, what is the business sense of opening up a retail store when it continues to be the most aspirational brand for smartphones, tablets, laptops and other products Apple manufactures that too, at a time when its growth in India has been at an all-time high.

Market watchers like us are aware of the larger Apple India story, where opening up of a retail store is an integral puzzle of its commitment to India and there have been a lot of negotiations between Apple and the government as per media reports. But does it merit any business sense also?

A look at the Indian smartphone industry journey so far says there was a trinity that started working from 2015 and everybody thought this is the future of smartphone retail in the country. The trinity was the emergence of asset-lite, investment-lite smartphone brands, sprouting of e-commerce and the introduction of 4G in the country. This all of a sudden changed the dynamics of smartphone retail in the country where at its peak 6 out of every 10 smartphones were sold online through e-commerce platforms and some smartphone brands through the D2C platforms though the number of such sales were limited.

But now when we glance through the journey of such ‘over-the-top’ smartphone brands, which made very little investments in offline retail, it has been a roller - coaster ride for them. These brands like
Redmi<\/a>, Realme<\/a>, OnePlus<\/a> and a few more have seen the maximum volatility in their business performance over these years.

Compared to this, brands like
Samsung<\/a>, Apple, Vivo and OPPO<\/a> remained focussed on offline retail right from the beginning. The result of this focus is that these brands have shown consistency and sustainability in their business operations. For example, Samsung’s market share hovered around 20% by volume during this period. Similarly, Vivo earned 15-16% and OPPO had a market share of 10-11% . So has Apple been able to grow in India with equal focus on online and offline channels ? Now with the retail expansion, it should be able to further consolidate its position in the market.

The D2C trend in the online channel is an indicator of diminishing value that the larger brands are deriving out of marketplaces. This is among the reasons that brands are investing in the D2C model across sectors. The takeaway here is that for e-commerce marketplaces, it's not a concern which product is getting sold, they are more concerned about the
GMV<\/a> (Gross Merchandise Value) which could be coming from any product based on demand, consumer preferences and changing online buying behaviour of customers. For years, since e-commerce started in India, smartphones were one of the main GMV contributors for the marketplaces. This was in return benefiting the ‘over-the-top’ smartphone brands which saw growth through this channel without making upfront investments in retail.

Post Covid-19, we have seen a shift in online buying preferences of consumers. First the situation pushed them to start buying essentials including medicines, provisions and groceries through the online mode. Now, it has become more of a habit. There is an interesting consumer behaviour emerging with regards to online buying. Consumers find value in buying essentials through online mode as such shopping is monotonous and there is no ‘retail therapy’ effect. It’s a fixed routine shopping list that needs to be bought, most of them from specific brands. For instance, someone who used to buy a particular brand like Aashirwad flour, will buy the same brand for taste preferences. Contrary to this, since the situation has returned to its original state, consumers are finding reasons to go out shopping to buy electronics, apparels and similar occasional products. They plan it out over the weekend, preferably also dine outside and make it an occasion to bring a change in their routine life. In this changing scenario, offline retail becomes important for products like smartphones.

Read also<\/h4>
<\/a><\/figure>
India set to become a leader in global mobile phone market: Vaishnaw<\/a><\/h5><\/div>
<\/a><\/figure>
Vivo to invest Rs 1100 crore more in India towards local manufacturing, retail and local R&amp;D<\/a><\/h5><\/div>
<\/a><\/figure>
Apple to open Mumbai retail store on April 18, Delhi store on April 20<\/a><\/h5><\/div>
<\/a><\/figure>
Apple continuously expanding business operations in India: Goyal<\/a><\/h5><\/div><\/div><\/div>
The channel, like a shrewd salesperson, will focus on achieving targets and since e-commerce platforms have GMV to achieve, it doesn’t matter to them to stay focused on a particular product, in this case smartphones. They will sway with the tide. This is a common practice among salespeople as well who have multiple products or markets to serve. They lose focus over a period of time on all the allocated products and markets and concentrate on achieving their numbers from what is working for them. Contrary to this, the offline channel is more focused. The retailers as well as the brands make investments specific to product categories. They can only make money by selling the product they are aligned to which in our case is a smartphone.

While brands are going D2C in the online mode, they will have to invest in offline retail as the model of ‘over-the-top’ retailing will not reward the same way as it did in the past. Be it the business performance of the smartphone brands or the changing customer preferences, there is a strong case for investing in offline retail and increasing proximity to the market where customers are expected to find their best smartphone fitting their requirements and their budgets. We have seen how the smartphone industry performed in 2022, and it has not been a great start for 2023. There is an immense opportunity of 5G upgrade awaiting which is likely to take-off in the second half of 2023 when the affordability portfolio across brands widens as well as the live network expands through all major cities and towns of the country. But there are still some important questions like whether consumers will upgrade as there is no strong pull for switching to 5G without any killer use case of 5G. In this uncertainty, smartphone brands shall have to rely on a channel that gives them assured and sustained business than a highly volatile outlook which they cannot afford in 2023.

As Apple’s Mumbai retail store kicks off the conversation around modern retail in India, there is a deeper business need for smartphone brands to go big for offline retail and consolidate their performance at a stabilised level rather than roll the dice over e-commerce marketplaces and wait for the outcomes.

(Faisal Kawoosa is Founder & Chief Analyst at Techarc)
<\/strong>
DISCLAIMER: The views expressed are solely of the author and ETTelecom.com does not necessarily subscribe to it. ETTelecom.com shall not be responsible for any damage caused to any person\/organisation directly or indirectly.<\/em>

<\/body>","next_sibling":[{"msid":99499658,"title":"Brazil paves way for semiconductor cooperation with China","entity_type":"ARTICLE","link":"\/news\/devices\/brazil-paves-way-for-semiconductor-cooperation-with-china\/99499658","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":99511176,"entity_type":"ARTICLE","title":"Telecom Diary: The era of over-the-top smartphone retail is over","synopsis":"Market watchers like us are aware of the larger Apple India story, where opening up of a retail store is an integral puzzle of its commitment to India and there have been a lot of negotiations between Apple and the government as per media reports. But does it merit any business sense also?","titleseo":"devices\/telecom-diary-the-era-of-over-the-top-smartphone-retail-is-over","status":"ACTIVE","authors":[{"author_name":"Faisal Kawoosa","author_link":"\/author\/479257943\/faisal-kawoosa","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479257943.cms?width=100&height=100","author_additional":false}],"analytics":{"comments":0,"views":854,"shares":0,"engagementtimems":4082000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-04-15 19:15:47","lastupd":"2023-04-15 19:15:49","breadcrumbTags":["apple","samsung","redmi","realme","oppo","oneplus","gmv","devices","apple in mumbai","smartphones in india"],"secinfo":{"seolocation":"devices\/telecom-diary-the-era-of-over-the-top-smartphone-retail-is-over"}}" data-news_link="//www.iser-br.com/news/devices/telecom-diary-the-era-of-over-the-top-smartphone-retail-is-over/99511176">