E-Commerce Firms Account for 45-50% of Handsets Sale in India: ICEA

- Advertisement -

ICEA alleged that this comes at the cost of offline retail business as there is extensive predatory pricing by e-commerce companies

Industry body India Cellular and Electronics Association (ICEA) said that last month, e-commerce firms have accounted for around 45-50 per cent of overall handset sales in India. The industry body alleged that this comes at the cost of offline retail business as there is extensive predatory pricing by e-commerce companies.

Predatory pricing

- Advertisement -

“In the US, the mobile phones sale via e-commerce is probably 2 per cent. In India, it has reached 45-50 per cent as the e-commerce company’s pricing is highly predatory,” Pankaj Mohindroo, Chairman, ICEA told journalists at the launch of a joint report with McKinsey

E-commerce companies are doing something which they are not supposed to do. That is a big challenge,” he added.

Mohindroo further said that e-commerce industry is rapidly growing in the country, but it is at the cost of offline retail sector.

Impact on retail stores

He informed that around 45 thousand retails stores have been shut down in the past year, which is a major cause of concern. The association has conducted a small study in the Noida area of NCR and found that there were 1,148 mobile retail stores a year ago and now there are 950 stores left.

During the ongoing festival season, e-commerce firms, like Flipkart and Amazon, have sold mobile phones with heavy discounts of up to 62 per cent.

Mohindroo said the members of ICEA are themselves divided on the matter but the association is raising this matter for ethical and moral reasons.

The joint report by ICEA and McKinsey released at the event recognised the gaps in way the mobile devices sector in India achieving the status of global powerhouse. It also made suggestions on transforming the growing mobile manufacturing eco-system in the country.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

“AIC-T-Hub Aims To Grow Startups So More Indian Unicorns Can Contribute To The GDP”

0
T-Hub has collaborated with Atal Incubation Centre (AIC), initiated by the Atal Innovation Mission to incubate semiconductor startups, fostering innovation for India’s advancement in...

Pros And Cons: Boult’s Varun Gupta On Contract Electronics Manufacturing

0
While contract electronics manufacturing is not a new concept in India, it has lately picked up a pace never seen before. But what has...

Buzz

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

ASUS IoT And BRESSNER Technology Launch CTOS

0
The collaborative approach seamlessly integrates advanced features across CTOS solutions, fostering synergy. ASUS IoT has recently unveiled a strategic collaboration with BRESSNER Technology, aiming to...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Important Sectors

Renault Kwid, Maruti eVX: 15 Upcoming EVs Under ₹10 Million (1 Crore) In India

0
Should you wait or buy an electric car from the existing options in India? Well, that’s a question only you should answer! However, if...

Commercial EV Finance: Empowering Younger Companies To Drive Growth

0
While electric three-wheelers have emerged as the face of EV adoption in India, startups engaged in their retail need increased access to finance for...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

Manufacturing

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...