Amazon sees surge in electronics sales, small towns drive growth
What's the story
Amazon India's ongoing Great Indian Festival has witnessed a massive surge in consumer electronics sales, with 70% of the orders coming from outside Tier-1 cities. The trend highlights the growing demand for premium smartphones, large-screen TVs, AI-powered laptops, and smart appliances in smaller towns. Zeba Khan, Director of Consumer Electronics at Amazon India, attributed this growth to recent GST cuts on categories like televisions and air conditioners.
Tax impact
GST benefits boost demand
Khan said the GST benefits have played a major role in converting pent-up demand into actual purchases across segments. She noted that while offers during the Great Indian Festival have always been sharp, this time, the government's GST cut and clear communication have amplified demand. The new GST regime came into effect on September 22, just a day before Amazon launched its sale.
Tech trends
Smartphones remain anchor category
Smartphones continue to be the anchor category for Amazon's electronics business, with premium models (priced ₹20,000 and above) witnessing nearly 50% year-on-year value growth and a 30% increase in average selling price. Khan said brands like Samsung, Apple, OnePlus, and iQOO performed exceptionally well during this period.
Appliance demand
Premiumization trend in full swing
Despite being an off-season, AC sales have increased by over 20%, driven by smart and energy-efficient models. Dishwashers have seen a growth of over 120%, while televisions, especially large screens above 55-inch, have also witnessed strong growth. The computing segment has also reflected the premiumization trend with AI-powered laptops accounting for one in five sales and average selling prices in personal computing rising by 15-16%.
Growth strategy
Focus on affordability and logistics
Amazon has credited the growing demand for consumer electronics to both smaller-town demand and affordability. Khan said over 30% of premium devices were sold on no-cost EMIs, highlighting the importance of affordability tools in driving sales. The company also ramped up its logistics capacity, ensuring that 40% of orders were delivered the same or next day within the first 24 hours.