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Increasing internet penetration, a young demographic profile, and rising disposable incomes will propel the online CEA market
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Online Consumer Electronics and Appliances (white goods, brown goods and consumer electronics) market in India is valued at over INR 99,000 Cr approximately. It is driven by rising disposable incomes, increased penetration of electronic gadgets in everyday use, and an upsurge in the GEN Y population. Some of the challenges faced by this industry are lack of trust in online market places, the risk of cyber-attacks and privacy loss and language barriers in internet usage. Nevertheless, the online Consumer Electronics and Appliances market in India is expected to register a CAGR of 24.5% by FY 2026. This study covers an analysis of growth potential of the market, market concentration, the competitive environment, Market segment analysis, Market trends, distribution channel analysis, growth opportunities available to existing players and new entrants and revenue forecasts. Product segments covered are White goods, brown goods and consumer electronics and the geographic coverage is confined to the Indian Market. Key Questions the study will answer include 1. What is the future growth potential of the online CEA market in India? What will be the major drivers and trends impacting the market? 2. Which segment is expected to dominate the market in the coming years, and at what rate is it expected to expand? 3. What is the market concentration in the online CEA market and what will be the trend? 4. What are the growth opportunities in e-commerce for new entrants as well as existing players? 5. Are the vendors in the space ready to go it alone, or do they need partnerships to take their businesses to the next level? Xioami dominates the online CEA market with Flipkart and Amazon being other key players. The western region in India dominates the market with a contribution of 34.7% to the total revenues followed by Southern region. Key trends observed are that digital payments in India are on the rise and are likely to account for 80% of online transactions and m-commerce is expected to dominate digital payments. Government measures such as demonetization have led to a spike in online spending and this is expected to see further growth in the future. Implementation of cutting edge technology to improve online shopping experience is expected to shift foot falls further from in-store to online portals. Companies implementing Omni-Channel strategy, those that can offer an immersive shopping experience to its customers and those that can forge strategic partnerships are likely to see success in the industry. Other critical success factors and opportunities for players include leveraging the big data collected from online usage and transactions and converting them into increased sales, being able to offer attractive financing options to customers, showing increased commitment to data security and customer privacy , and strategic promotion of online-exclusive products to encourage online shopping. Web-to-Store, Brick-to-Click models are expected to be widely popular. ROBO or ‘research online, buy offline’ trend is likely to continue to be in use, pushing vendors to create online exclusive products at competitive prices leading to both lower costs and increased sales for players in the market.
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