Amazon to launch exclusive smartphones with services like Prime Video, Kindle & Amazon Pay
BENGALURU: Online marketplace Amazon India, which saw Flipkart walking off with a higher market share in the smartphone category in the first quarter of 2017, is fighting hard to regain its turf by bundling exclusive device launches with the platform's services including Prime Video, Kindle and Amazon Pay.
According to data provided by Counterpoint Technology Market Research, the first quarter of 2017 (January to March) saw Flipkart increasing market share to 57% from 51% in the October-December 2016 quarter. Amazon India's share fell from 33% to 27% share during the same period. Counterpoint said Amazon's share was set to increase in the current quarter with successive sales for Redmi 4A, a budget smartphone.
Exclusive tie-ups in the category is crucial for marketplaces which make additional revenue through promotion, marketing and distribution of brands which do not have a strong physical presence in India. The category contributes to almost one-third of the GMV for the marketplaces.
With the launch of the Moto G5 on the Amazon India platform, the US-headquartered retailer plans to tie-up with other brands for pre installed Amazon services.
“There are three features smartphones are heavily used for, other than calls. Shopping, watching videos, and reading and all of these are right there on top for Moto G5 with Prime Video, Kindle and Amazon Pay. We have very exciting brands coming in though we can't talk about them now,“ said Manish Tiwary, vice-president, category management, Amazon India.
He added that for its exclusive brand tie-ups OnePlus and Coolpad, the platform works closely on specifications, customer behaviour, online brand value, and pricing. “This continues till the end of life for the device. When we start working with an exclusive brand, we know what the end of life for the device will be,“ added Tiwary .
While exclusive brand tie-ups restrict a brand to selling on a single marketplace, exclusive product tie-ups are structured around the sale of a single model or device on the partner marketplace. Targeting upgrades, Amazon India also launched a buyback offer for Moto G4, the older generation device to sweeten the deal for customers. “One of the interesting trends happening in etail space is the increase in average selling price (ASP) of smartphone.
Both Flipkart and Amazon managed to maintain healthy ASP for the devices selling on their platform eventually leading to increase in revenue year-on-year. We estimated that smartphone contribution to etail space will be 35% in CY 2017,“ said Karn Chauhan, research analyst, mobile devices and ecosystems at Counterpoint Research.
According to data provided by Counterpoint Technology Market Research, the first quarter of 2017 (January to March) saw Flipkart increasing market share to 57% from 51% in the October-December 2016 quarter. Amazon India's share fell from 33% to 27% share during the same period. Counterpoint said Amazon's share was set to increase in the current quarter with successive sales for Redmi 4A, a budget smartphone.
Exclusive tie-ups in the category is crucial for marketplaces which make additional revenue through promotion, marketing and distribution of brands which do not have a strong physical presence in India. The category contributes to almost one-third of the GMV for the marketplaces.
With the launch of the Moto G5 on the Amazon India platform, the US-headquartered retailer plans to tie-up with other brands for pre installed Amazon services.
“There are three features smartphones are heavily used for, other than calls. Shopping, watching videos, and reading and all of these are right there on top for Moto G5 with Prime Video, Kindle and Amazon Pay. We have very exciting brands coming in though we can't talk about them now,“ said Manish Tiwary, vice-president, category management, Amazon India.
He added that for its exclusive brand tie-ups OnePlus and Coolpad, the platform works closely on specifications, customer behaviour, online brand value, and pricing. “This continues till the end of life for the device. When we start working with an exclusive brand, we know what the end of life for the device will be,“ added Tiwary .
While exclusive brand tie-ups restrict a brand to selling on a single marketplace, exclusive product tie-ups are structured around the sale of a single model or device on the partner marketplace. Targeting upgrades, Amazon India also launched a buyback offer for Moto G4, the older generation device to sweeten the deal for customers. “One of the interesting trends happening in etail space is the increase in average selling price (ASP) of smartphone.
Both Flipkart and Amazon managed to maintain healthy ASP for the devices selling on their platform eventually leading to increase in revenue year-on-year. We estimated that smartphone contribution to etail space will be 35% in CY 2017,“ said Karn Chauhan, research analyst, mobile devices and ecosystems at Counterpoint Research.
