Call it India?s ?Moto phenomenon?, but the fact is that it has become much more convenient and profitable for smartphone manufacturers to sell their wares online here. The success of the three Motorola phones, available only on Flipkart in India, is prompting more companies, especially the newer entrants, to take this path. The latest, Chinese phone maker Xiaomi, replicated the online success of Moto E when its entire stock on Flipkart was reportedly sold out in 38 minutes. The online model is much more easier for the newer companies as they don?t have to worry about setting up supply chains or stores. A single consignment to their e-commerce partner is all it takes. It might not make much sense for the larger players to take this route as they have already invested on the infrastructure. That is why these companies insist on a ?multi-channel approach?. More compulsion than choice.
The driving force here is the Indian consumer who is now bold enough to buy something as expensive as a smartphone online, without feeling the need to touch and feel. On the other hand, the online model lets him buy the phone even from locations where some of these companies would never have bothered to be physically present. A Flipkart can reach these tier-3 and tier-4 towns now, while it would be a logistical nightmare for a company that does not know India much. There are a lot of people who stay away from relatively new brands, fearing they won?t be able to offer after-sales support. But this is slowly becoming less of a factor as Android phones are not really long-term investments. Even if the phone lasts over a year, the pressure of having to keep up with the trends is pushing people to upgrade sooner. Anyway, if the stocks are going to be sold out in under an hour, no one will bother if the phone develops a snag in a couple of weeks. Yes, this model has a lot of benefits.
