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Online Retailing in the Consumer Electronics and Appliances (CEA) Market in India, Forecast to FY 2026

Online Retailing in the Consumer Electronics and Appliances (CEA) Market in India, Forecast to FY 2026

  • September 2019
  • 175 pages
  • ID: 5816275
  • Format: PDF
  • By Frost & Sullivan

Summary

Table of Contents

The online consumer electronics and appliances (white goods, brown goods, and consumer electronics) market in India is valued at approximately INR 99,000 crores.It is driven by the rising disposable incomes, increased penetration of electronic gadgets in everyday use, and an upsurge in the GEN Y population.

Some of the challenges faced by this market are lack of trust in online marketplaces, the risk of cyberattacks and privacy loss, and language barriers in Internet usage. Nevertheless, the online CEA market in India is expected to register a CAGR of 24.5% from FY 2019 to FY 2026. This study covers an analysis of growth potential of the market, market concentration, competitive environment, market segment analysis, market trends, distribution channel analysis, growth opportunities available to existing participants and new entrants, and revenue forecasts. Product segments covered are white goods, brown goods, and consumer electronics, and the geographic coverage is confined to the Indian market.Xiaomi dominates the online CEA market with Flipkart and Amazon being other key participants. The Western region in India dominates the market with a contribution of 34.7% to the total revenues followed by the Southern region. Key trends observed are that digital payments in India are on the rise and are likely to account for 80% of online transactions, and mCommerce is expected to dominate digital payments. Government measures such as demonetization have led to a spike in online spending, and it is expected to see further growth in the future. Implementation of cutting-edge technology to improve online shopping experience is expected to shift footfalls further from in-store to online portals. Companies implementing omnichannel strategy, that can offer an immersive shopping experience to its customers and that can forge strategic partnerships, are likely to see success in the industry. Other critical success factors and opportunities for participants include leveraging the Big Data collected from online usage and transactions and converting them into increased sales, offering attractive financing options to customers, showing increased commitment to data security and customer privacy, and strategically promoting online-exclusive products to encourage online shopping. Web-to-store and brick-and-click models are expected to be widely popular. Research online, buy offline (ROBO) trend is likely to continue, pushing vendors to create online-exclusive products at competitive prices, leading to both lower costs and increased sales for participants in the market.

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