Buying smartphones online for special discounts might be a thing of the past
Advertisement
Advertisement
Even though reports suggested that online shoppers would still get discounts on smartphones that they buy online, but the discounts would mostly be from new players who would be willing to grab a share of the Indian market. However, industry experts are of the view that even these discounts might go for a toss because of business sustainability reasons. As brands look forward to bringing pricing parity between online and offline channels, this might cause heartache to online shoppers.The discounts and freebies were offered to gain business volumes by ecommerce players, but the
"Discounting by ecommerce platforms will reduce but smartphone brands, especially new ones that want to gain market share, may begin deep discounting," Micromax's chief marketing officer Shubhajit Sen, told ET. The sentiment was shared by Atul Jain, COO at LeEco.
However, if we look at the long term prospective, such a move would not be a sustainable strategy because smartphone brands already operate on wafer thin margins and would not like additional costs to sell their phones.
"New brands coming into India will offer discounts on their own... but there won't be indefinite discounting," said Jaideep Mehta, MD, IDC South Asia.
Advertisement
Other than this, brands will now have better control over the positioning and promotions of their devices, said Tarun Pathak, senior analyst at Counterpoint Research.
"All the friction between brands and ecommerce sites has been due to differential pricing, so if the new policy is taking it away, it creates a chance for ecommerce sites and brands to collaborate through joint marketing programmes," Mehta added.
Image source
Advertisement
- India is an oasis of growth amid a slower global economic landscape, witnessing a once-in-a-generation growth: G20 Sherpa Amitabh Kant
- Mutual fund stake in NSE-listed cos at all time high; FPIs at 11-yr low
- Gold prices today: Yellow metal climbs Rs 230 while silver jumps Rs 700
- Indegene IPO: Company details to risk factors, all you need to know
- Indegene IPO subscribed 1.67 times on Day 1 of offer
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market