With 5G on the horizon this year, the industry is expected to see 180-195 million shipments in 2022 alone. The Software Technology Parks of India (STPI) reports that Telangana, Maharashtra, and Uttarakhand have submitted three new proposals for setting up electronics clusters under the modified scheme for consideration by the ministry of electronics and information technology (MeitY). Cumulatively, these initiatives and factors have driven the market upward and are expected to continue doing so.
The market for smartphones has been booming and high demand has led to decreasing prices. China is setting up top-of-the-line value chain assembly plants like the Foxconn plant to manufacture premium smartphones. These factors all contribute to lowered smartphone prices, which is why more and more consumers are opting to buy smartphones, gradually phasing out "dumb" feature phones. Although feature phones will continue to exist, India's digital transformation and its digital economy have provided the impetus for consumers to upgrade to smartphones. In addition to voice, vernacular, and video, consumers at the bottom of the pyramid are looking for affordable and accessible smartphones. As smartphone brands compete to win customers at the bottom of the pyramid, those who can offer unique, affordable, and data-bundled propositions will stand to gain.
Smartphones have become inseparable companions for most people today, and this trend is driving the mobile phone accessories online market to unprecedented levels.
India is one of the biggest and fastest-growing smartphone markets in the world. India's rapid proliferation of smartphones and mobile-enabled devices is a major driver of the demand for mobile accessories. Today's trend is to have wireless gadgets with longer battery life options, voice assistance, fast chargers, and sporty and colorful accessories.
Take Away Point
The Indian mobile accessories online market is vast and fast-growing, but there are challenges and grey areas. In the coming years, wireless chargers, headphones, earphones, etc will witness a surge in sales because people are slowly but surely switching to wireless technologies. Grey market players sell accessories at dirt cheap prices. While they do not offer any warranty or support, their products are attracting customers who are only looking for cheap products, without caring about the quality. Low-quality products are very cheap, but they cost more in the long run because their lifespans are short and their quality is terrible.
The Make in India program is still in trouble because the government has imposed taxes on essential imported components which the Indian manufacturing ecosystem is still unable to manufacture. Deep retail and distribution through B2B e-commerce platforms can be vital, as can the ability to rapidly expand the networks of trusted distributors and retailers in Tier II, III, and IV cities across the country. E-commerce platforms like Solve can play an enormous role by facilitating commerce and identifying bottlenecks in the supply chain.
In conclusion, the Indian market will continue to provide a great number of opportunities for brands that are determined, systematic, quality-oriented, market-smart, and offer trendy features in their accessories.