Flipkart on Tuesday announced that it aims to capture 40% market share in the smartphone category by 2020 as part of its ‘Mobiles 40by20’ strategy. The company claims that it currently has approximately 25% share in the category. Outlining the details, Ajay Yadav, vice-president, mobiles and large appliances, Flipkart, said the company is taking a number of steps to further consolidate its leadership position in the category. “Approximately, one in four phones bought in India is through Flipkart. We have achieved 60% growth in the mobile phone category, compared with an industry growth of 14%. With ‘Mobiles 40by20’, Flipkart will contribute significantly towards adding the next 100 million smartphone users by 2020,” he said.
As part of the strategy, Flipkart has formed a long-term strategic partnership with Taiwanese handset maker Asus. Under this partnership, the first smartphone called ZenFone Max Pro will be launched on April 23. The partnership will cover sales and marketing of products by Flipkart and see both the companies collaborating for co-creation of new products for the Indian market based on consumer insights. “With Flipkart’s partnership, we aim to gain more insights about Indian consumers’ needs which can help us develop even more suitable products for the Indian market,” Jerry Shen, CEO, Asus said.
Citing various industry reports and internal estimates, Kalyan Krishnamurthy, CEO, Flipkart, said the retail market in India is expected to grow 1.6-fold to $972 billion by FY21 from $600 billion in FY16. “E-commerce on the other hand is forecast to grow at 8.5 times in the range of $50-$60 billion by FY21 from $9-$10 billion in FY16. E-tailing has played an important role in organising the mobile phone market in India,” Krishnamurthy added.