Brick-and-mortar stores
are reportedly witnessing a resurgence for big-ticket electronics like smartphones and televisions, while e-commerce thrives on daily essentials and quick commerce delivery. According to a report in Economic Times, quoting companies and market researchers, this trend signals a shift in
consumer behavior
, post-pandemic.
How e-commerce's grip on electronics may be loosening
Smartphone sales online dipped to 45% in 2023, down from 48-49% the previous two years, data from Counterpoint Research reveals.
Similar declines are observed for televisions and washing machines. For products such as televisions, the contribution has dropped to 29-30% from 34% last year, while for washing machines it's down to 18-19% from 21%, industry executives said.Experts attribute this shift to the return of in-store experience for high-value purchases, fueled by premiumization and narrowing price gaps between online and offline channels.
FMCG embraces the digital wave
In contrast, fast-moving consumer goods (FMCG) see e-commerce booming, driven by quick commerce platforms. Convenience and instant gratification offered by these apps are fueling a 3-5% increase in e-commerce contribution for companies like ITC, Emami, Marico, and Parle Products. Remarkably, alternate channels (e-commerce and modern retail) now account for a quarter of total sales for some of these FMCG giants.
Brands decode the trend
Santosh Desai, managing director at Futurebrands Consulting, told ET that he sees a "habit change" favoring quick commerce for branded essentials, while discretionary purchases like apparel and electronics are correcting after a pandemic-fueled online surge. Consumers, it seems, still value the "touch and feel" experience for these categories.
E-commerce finds new fertile ground: Despite the shift in high-value segments, e-commerce isn't losing steam altogether. Wider internet penetration in smaller towns propelled festive season sales in discretionary categories. Anant Jain of GfK India confirms significant online growth for tech and durables throughout the year.
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