Offline smartphones sales reached 2019 levels in 2022

As consumers shift back to pre-pandemic normalcy is a major driver for an uptick in smartphone growth at the back of hybrid work culture. A report from GfK Market Intelligence says, in the first half of 2022, value growth of 44% YoY in the smartphone segment is observed vis-a-vis 2021.

The offline channel growth of smartphones reached 2019 sales levels in 2021. In 2022, it is projected to grow by 25-30% over 2021 by value in offline channels; thus, the year ahead looks optimistic complemented by festive season sales. All of this is possible due to, we Indians, coming to Normalcy 38% faster than the rest of the world Say experts.

The contribution of the +20K price band category has evolved from approximately 17% in 2017 to 40% in H1’22 in the offline market. This signifies that there is a 2.5X jump in the contribution of +20K handsets from 2017.

The 20k+ price segment shows growth across all tier cities- with Tier 4 cities witnessing maximum growth in the price segment in H12022 vis-à-vis H12019 at a staggering 240% growth followed by Tier 3 cities with 186% growth, Tier 2 at 162% growth, and 86% growth in Tier 1 cities. Tiers 5 and above cities witnessed over 120% growth. The contribution in the same time period was led by Tier 1 cities at 59%.

The GfK’s Consumer Life Study 2022 surveyed amongst the Indian urban consumers, especially the younger demographic, it was observed that 64% like to be seen with the latest tech products. While 46% of them used an electronic payment service like UPI, Paytm, or GPay.

Post-pandemic, the element of convenience is a big factor that influences purchase decisions - 62% of Indian consumers want tech which knows them and can make recommendations, thereby making their day-to-day life easier. These trends cumulatively can offer to be a tailwind opportunity for smartphone retailers in the Indian market.

The ASP of smartphones has increased up to 34% in 2021 vs 2017 while it increased 65% in 2022 Q2 vs 2017 Q1. This positive uptick is an opportunity for both manufacturers and retailers to garner profit in the coming quarters.