Lucknow ordered highest number of electronics items: Admitad Survey

 Lucknow ordered highest number of electronics items: Admitad Survey

Delhi, Lucknow, Bhiwani and New Delhi were the most active in terms of electronic orders in January-May this year.

Team L&M

The global electronics industry is expected to grow at a steady annual rate of 3-5 per cent in the coming years, according to expert forecasts. However, the geopolitical environment, growing demand for electronic components and the risks facing manufacturers are making consumers nervous. In the first half of 2024, the number of online orders for electronics grew by more than 15 per cent, according to calculations by Admitad partner network. In India, demand jumped even higher, by more than 30 per cent.

Admitad analysed over 15 million orders globally and over 900k orders in India for 2023 and January-May 2024. The study analysed both orders on global brand sites and marketplaces as well as purchases on local platforms – Alibaba, Croma, Acer, Realme, Samsung, Oneplus, lenovo, Apple, Mivi, Boat and Oppo to name a few.

Last year, Indian trends also overtook the global market. According to data from the Admitad partner network, in 2023 Indians made 10 per cent more orders in this segment and spent 7 per cent more on them. This growth is particularly impressive against the background of a 9 per cent growth in global online sales.

But even these figures seem modest against the backdrop of the frenetic demand of the first half of 2024. Indian shoppers made 28% more electronics purchases in January-May than they did in the same period last year. They also spent 30% more on them. The average order receipt from the electronics category in the country is now at 158 USD.

The share of mobile shopping in the country has slightly decreased at the beginning of 2024 – from 53 per cent to 45 per cent. Users are taking a thoughtful approach to purchasing, comparing several alternatives both in terms of features and reviews.

According to Neha Kulwal, Managing Director, India and APAC, Mitgo, “The global spike in demand for electronics is understandable. If last year some buyers were still postponing the upgrade of computers and phones or the purchase of new gadgets because of rising prices, now it seems that everyone has already realized that the rise in cost is not a temporary phenomenon, and prices will clearly not go down in the near future. Both the cost of manufacturing and the price of raw materials for electronic components are rising. At the same time, the demand for them is increasing, including orders from government customers and large private industrial complexes. All these factors, of course, affect the prices and availability of electronics for ordinary customers.”

In early 2024, the anxiety of clients has been further fueled by the growing geopolitical tensions surrounding Taiwan, where a significant share of the global electronics industry is centered, followed by its extensive media coverage. Many buyers claim to “want to buy the gadget now before it’s too late.” Despite the high prices, they fear that their choices will only narrow further and some interesting options will be beyond their reach.

According to Admitad data, purchases from the Home appliances category jumped the most globally, with demand for them increasing by more than 20 per cent in 2024. This is followed by Consumer Electronics (+18 per cent), Computer & Office (+15 per cent), Electronic Components & Supplies (+7 per cent) and Phones & Telecommunications (+6 per cent). Statistics on Indian shoppers also follow these trends.

The top cities in India with the highest number of orders are: Lucknow, Bhubaneswar, Ludhiana, Kolkata, Delhi, New Delhi, Bhiwani, Mumbai, Bengaluru, and Chennai. 

Despite the frenzied demand, customers are still trying to minimize the damage to their budget. According to Admitad’s calculations, the share of customers who use cashback services while buying electronics has increased significantly in India. While the share of orders using cashback was at 35 per cent in 2023, it has already jumped to over 50 per cent in 2024. The share of coupons in electronics purchases also remains consistently high at 16 per cent of orders.

Content platforms, affiliate stores, messengers, contextual advertising and social media remain the best channels for attracting sales for electronics brands in India. These customer sources are the ones that will account for up to 90 per cent of all orders in the category in 2024. Affiliate publishers, who attract customers and orders for brands for remuneration, are also not left out of the overall hype. Their revenue growth in India has already exceeded 35 per cent in the first half of the year.

It is also important to note a major global trend that has not yet reached India – the global growth of sales through financial stores. These are sites that publish a selection of lucrative options for buying goods on credit or installments. Due to the global price hike and customers’ desire to upgrade their appliances as soon as possible, more and more clients are turning to such options. The number of orders through these platforms has already doubled in 2024.

While the situation for electronics brands in India and globally looks extremely positive at the moment, with products rapidly leaving the shelves – like any market overheating, excessive customer activity in the first half of the year could lead to an unplanned downturn in the second half. The results of fall sales can be disappointing for brands if the general mass of customers meet their demand in the first few months of the year. Companies should consider this likelihood while planning activities and budgeting.

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