In our endeavour to bring the best of traditional research rigor along with advancement in AI/ ML and digital technologies to address some of the challenges that modern marketers face today, we have released PredictiVu’s research report on MBO: Smartphone India Overview.
According to the report, the offline channel remains the biggest sales channel and contributes to more than half of all smartphone sales in India. This is despite the unprecedented growth that the online sales platform witnessed since 2020, fuelled by Covid.
Following the second wave of Covid-19, PredictiVu’s dashboard and analysis showed that the top 50 cities accounted for 60% of smartphone sales with MBOs accounting for 45% of the total.
According to the report, MBO factors that influence Indian smartphone buyers include:
- Personalised shopping experience.
- Instant delivery.
- Touch and feel.
- Unbiased review from retailers.
- No fake or duplicate product related suspicion.
Due to this, brands like Vivo, OPPO, and Xiaomi are investing in marketing campaigns to drive brand awareness, demand, distribution, and support in smaller towns and cities since many of these consumers prefer to buy smartphones offline, rather than over the internet. To underscore the importance of brick-and-mortar stores, Xiaomi announced that 50% of its sales would be conducted offline, and Vivo’s brand strategy director recently told the Press Trust of India that, “The inherent strength of offline will remain intact in the long run”. Store managers in smartphones store also believe offline retail will never die because there is a certain trust factor and a personal connection involved.
Retailers have taken on the ecommerce challenge by becoming omnichannel and boosting their digital sales efforts. By entering into exclusive offline partnerships with top brands, small regional players are expanding their operations. Brands and offline retailers are redefining the customer experience through a phygital strategy.
The government’s latest clampdown on the oligopolistic behaviour of large online players, banning flash sales, related party sellers, and more, should further help further boost the offline channel, which is expected to bounce back in 2021, contributing 60% to smartphone sales.
Download PredictiVu’s latest report for detailed insights into the MBO smartphone market in India.