We Could Cross Flipkart by Diwali, Claims Amazon
Etailer contests projections of lower shipments than Flipkart, which says its share of online mkt had grown further
New Delhi: Amazon has contested projections by research firms that the online retailer had a lower share of the smartphone market by both shipments and value and claimed it will trump rival Flipkart by Diwali.
The Seattle-based firm alleged that a large chunk of Flipkart’s smartphone sales went to traders, unlike its own, where almost all went directly to consumers. The Bangalore-based retailer, however, hit back saying that the Amazon’s reseller activity was nearly a third of its sales from the segment.
“Some research agencies and articles (media reports) that have quoted certain numbers, which we want to clarify… We have never shared those numbers with them,” said Arun Srinivasan, category leader for consumer electronics and smartphones at Amazon India, without naming any agency. The agencies and reports had said Flipkart was No. 1 in the smartphone segment with a huge lead over Amazon.
“According to the feedback from brands, there’s very little difference between the two platforms, and giving them some benefit of doubt, there may still be a 10% delta, but that also gets queered by returns, rejects,” Srinivasan said. He added that the two companies were neck-and-neck in the past few months, even though Amazon entered the segment two years ago.
“It’s possible that we could cross them on a sustained basis and by Diwali we could be ahead,” Sriniva- san told ET. Amazon is set to launch models from BlackBerry, Nokia, Lenovo and LG within 10 days.
Ayyappan Rajagopal, senior director of smartphones at Flipkart reiterated that the company's share had increased further to 6768% of the online market, on the back of eight of 10 brands preferring to launch new products with them. “We have blocked brand launches for the next two months… our festive season will be the best ever.”
Flipkart had a 57% share of the online smartphone market in the January to March quarter, while Amazon had 27%, Counterpoint Technology Market Research said. Smartphones are the largest product category by revenue for Flipkart and Amazon and both have started selling refurbished phones. The stakes are high in a competitive & price-sensitive segment.
A larger share is even more critical because the smartphone segment has remained stagnant and sales of these devices are expected to grow at the slowest pace in 2017, as reported by ET on Monday.