India witnessed exponential growth in premium smartphones – priced above Rs.30,000 – during the first half of 2023, as against the previous year, according to GfK Market Intelligence offline sales tracking. Premium smartphone sales volume witnessed a 50 pc rise, accompanied by a 54 pc growth in value, says the data.
The technical consumer goods sector recorded an 8 pc growth in value during the first half of 2023, as against the previous year.
While the telecom – smartphones and mobile phones – segment experienced a 4 percent reduction in volume, it was offset by a 12 percent increase in overall value, according to the company.
Several sectors witnessed significant growth in volume and value during the first half of 2023, compared with the same period in 2022. The smartphone segment experienced a 3 percent increase in volume, resulting in a 14 percent growth in value.
“The Indian consumer market is undergoing a remarkable transformation driven by evolving consumer preferences and a growing appetite for innovative products. This substantial growth highlights the resilience and adaptability of the Indian consumer market in the face of changing dynamics. The technical consumer goods market exhibited an impressive 8 pc growth in value. Meanwhile, the consumer electronics sector, i.e., audio-video categories, saw a remarkable 13 pc surge in volume, demonstrating a strong market presence,” said Soumya Chatterjee, Market Expert for Technical Consumer Goods – India, GfK.
Major domestic appliances
In the major domestic appliances category, air conditioners saw a 7 pc increase in volume and 9 pc rise in value. Washing machines followed with 6 pc growth in volume and 10 pc increase in value. Microwave ovens saw 4 pc growth in volume and 3 pc increase in value.
Despite the growth, the penetration of these products remains relatively low, indicating a vast opportunity.
A notable trend among Indian consumers is the growing desire for immersive entertainment experience. Within the consumer electronics sector, audio home systems experienced a 21 pc surge in volume, accompanied by a 12 pc rise in value, highlighting a strong market presence. PTV/Flat televisions saw 13 pc volume increase, while value growth remained a modest 2 pc.
The changing dynamics reveal an interesting pattern – that of surging aspiration among Indian consumers for an enhanced entertainment experience, according to GfK.
Stable growth in IT sector
In the information technology sector, the desktop computing segment maintained steady growth, achieving 7 pc increase in volume and 9 pc increase in value. Mobile PCs saw 14 pc decline in value while gaming laptops saw 6 pc growth in sales value.
According to the GfK Consumer Life 2022 Report, 74 pc of urban Indians surveyed have played video games on a personal computer at least once, and 88 pc have played games on tablets. What is even more promising is that IT devices like PCs still have an estimated penetration of less than 10 percent in India, indicating a substantial growth opportunity.
Media tablets experienced a 10 pc growth in volume and 17 pc increase in value, reflecting continued demand for versatile and portable computing solutions. The surge in media tablet sales signifies a shift in consumer behaviour, with people increasingly seeking entertainment and productivity on the go.
Surging demand through online channels
According to the GfK Consumer Life report, one out of every two consumers prefer to purchase products through online channels. This preference is reflected in the GfK Online Market Sensor report, which shows strong demand for consumer tech products in H1-2023 as consumers continue to realise the advantages of online shopping.
Panel television, refrigerators and mobile PC registered high sales volume growth of 42 pc, 29 pc and 28 pc, respectively. Washing machines and water purifiers witnessed a volume growth of 11 pc and 18 pc, respectively.
The data showcases growth across various product categories, highlighting the opportunities within the Indian consumer market. While online shopping offers convenience, a substantial segment of buyers conduct online research but ultimately makes the purchase offline, says the report.
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