Amazon Will Make Premium Smartphones Affordable For Indians; May Quit China Forever
Two big news are coming up from the world of Amazon: In a step to lure and entice Indians, ecommerce shoppers, Amazon India will now aim to make premium smartphones more affordable.
How will they do that?
Meanwhile, as per reports coming in, Amazon may quit the Chinese market forever.
What is the reason behind this?
Keep reading to find out more!
Amazon India Will Make Premium Smartphones Affordable
Amazon India is planning a major partnership with leading banks, financial institutions and creditors for enabling more and more Indians to buy premium smartphones.
As per Noor Patel, director, category management, Amazon, Indians are more and more interested in premium smartphones, but affordability remains the biggest cause.
In order to eliminate this obstacle, they will now offer new and easy payment options for the users. He said, “Marrying affordability with aspiration is the biggest insight that we have got and we’re doubling down on this one.
Last year, both Amazon and Flipkart had launched Aadhaar based credit facility upto Rs 60,000.
But Why Premium Smartphones?
As per Amazon India’s observations, premium smartphones are the niche which is fastest growing in India. Compared to last year for the period January to March, 2019, premium smartphones category grew 33%.
Premium smartphones are those phones which are priced above Rs 25,000.
Besides, the market for smartphones costing between Rs 10,000 to Rs 15,000 will climb by 18%, as per IDC data.
Interestingly, one out of three customers on Amazon buy smartphones using no-cost EMI option, which proves that if newer payment schemes are launched, Indian consumers will be interested.
More details are awaited in this regard.
Amazon Will Quit Chinese Market?
In a rare retreat, Amazon is planning to quit the Chines ecommerce market, and rather focus on emerging markets such as India, where they are already locked-in-horns with Walmart owned Flipkart.
As per reports coming in, Amazon.cn, their Chinese version of ecommerce portal will be scaled down, and very selected products will be displayed.
Services such as Amazon Web Services, Kindle e-books and facilitation of exporting Chinese goods to US/Europe will be on, but the mainstream ecommerce business will be scaled down to minimum level.
The transformation is expected to take place starting July 18th.
As per the reports, Amazon will now focus more on cross-border transactions in China, and on B2B, rather than on the consumer-facing business.
Amazon had entered China in 2004, after they bought a local ecommerce portal selling books, and ventured into the B2C ecommerce. But Alibaba, JD, and other Chinese ecommerce portals have been stealing the show since long, and Amazon doesn’t feel it’s worthwhile to invest and scale up more.
In 2016, Uber too had quit the Chinese market and merged with DiDi as their standalone business made sense in the wake of increased cost and losses.
We will keep you updated, as more details come in.