Even though Amazon India beat Flipkart in revenue last year, the latter has been faring rather well in the smartphones business. In a report by Counterpoint Technology Market Research, a Hong Kong-based research firm, Flipkart has led the pack in the smartphones business.
Of all the smartphones sold online, Flipkart captured 51% of the market share, while Amazon India followed at 33% during the October-December 2016 period. This was the same time India was facing the problems from demonetization of the Rs 500 and Rs 1000 banknotes.
Snapdeal, that is facing financial crunch right now, ranked third with 13% market share. This is also at the same time there were festive sales on the three platforms and smartphones is the hottest market under the electronics department. Flipkart has also been focusing on smartphone sales lately.
The bizarre prices set by Flipkart for OnePlus 3 and iPhone 6 are a testament to the company’s focus towards selling smartphones online in India. Almost 50% of the company’s sales come from smartphones, so it makes sense to increase the sales on this.
What is surprising is the drastic loss in Snapdeal’s market share, from 22% in 2015 to 17% in 2016, and 13% in the fourth quarter. Amazon India’s market share has increased from 21% in 2015 to 31% in 2016, a positive growth and bite of Snapdeal’s share.
Flipkart also leads the fashion business
Flipkart acquired Myntra, and then Myntra acquired Jabong, making Flipkart the single largest e-commerce for fashion. According to the report by Counterpoint Research, Flipkart led the fashion business online with 75% share.
However, Amazon India also grew by over 75% from previous year, with a good 15% market share in 2016. Amazon India Prime has played a pivotal role in increase the order rates and improving customer satisfaction.
Snapdeal has shown abysmal growth in 2016, and seeing the company’s current status, it can very well be understood that the revenue will drop and sales will see a decline unless an angel investor comes to rescue them. Snapdeal might even merge with Flipkart because it has diversified way too much way too early.