- Sales in metro cities are quickly recovering from the second wave, while tier 2 and 3 cities struggle
- The popularity of smartphones in the price range below 15K is skyrocketing, but smartphones in the price range above 25K are stagnating
- Vivo, followed by Oppo, lead the market share of offline smartphones
The second wave of pandemic in Q2 2021 (April-June 2021) and growing popularity of online retail dealt a double whammy to offline smartphone retail in 2021. -mar) to Q4 (October-December), both in value and volume, Tier 2 and Tier 3 cities lag behind. More and more smartphone users bought devices in the below 15K price category, with the 25K category not expanding. Vivo followed by Xiaomi were the top brands by value and volume in MBOs across India. This and other information has been published by PredictiVu, a data analytics company that tracks the offline smartphone market in 50 cities in India, in its annual MBO Smartphone India Overview 2021 report. Top 50 cities in India from January to December 2021.
Offline smartphone retail volume dropped 54% in the second quarter due to pandemic-related restrictions, increasing 19% and 30% in the third and fourth quarters, respectively. However, Q4 2021 remained 28% below Q1 volume. Likewise, offline retail value dropped 57% in Q2, recovering 23% and 35% in Q3 (July-September) and Q4. But the last quarter of 2021 ended 28% below the first quarter in value.
Among smartphone brands, Vivo continued to dominate offline smartphone sales in multi-brand stores with 29% market share in value and 27% in volume. Oppo ranked second with a 21% share by volume. A tie for third position followed between Samsung and Xiaomi, both with 16% by volume.
Samsung’s share of MBO sales continued to decline over the quarters, dropping from 22% in the first quarter to 10% in the fourth quarter. Apple lost its market share by 15% in Q4 compared to Q1 by volume and 21% by value, while Oppo gained nearly 20% over the same period in the 25K+ smartphone category.
The North’s market share in Q4 increased by 15% compared to Q1 in high-end smartphones, while the West and South saw a decline over the same period. The main classes of cities were the ones that most contributed to this variation in shares. While in volume there hasn’t been much change for the big cities, there has been a 3% increase in market share by value. This can be attributed to the choice of more expensive smartphones.
Speaking about PredictiVu’s MBO Smartphone India 2021 Summary Report, Kunal Sarkar, Vice President of PredictiVu, said, “2021 continued to be a challenging year for offline smartphone retail in India. After the pandemic and the second wave, more people shopped online, making it difficult for offline retailers to thrive or even survive. Many traders in the MBO category have closed their shutters permanently or have remained bankrupt for a long time. While the festival season brought hope for the third and fourth quarters, significant recovery in India remained a challenge. However, metropolitan cities fared well, with sales rebounding and surpassing pre-second wave numbers. As the restrictions imposed by Omicron continue to put pressure on an already weak market, the first quarter of 2022 will show what the real impact has been. »
PredictiVu Strategic Advisory Board member Rajesh Kurup added: “2021 was expected to be a year of recovery for offline smartphone retail, with Q1 sales being the highest of all quarters. However, the second wave played killjoys. One interesting trend we saw over the four quarters was the steady increase in market share of smaller players in the offline smartphone retail market. This shows that with rising prices and falling incomes, smartphone users are turning to pocket smartphones. This is also evident with the growing popularity of smartphones in the sub-15K category.
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