Amazon’s fight against Flipkart in the Smartphone’s category– the biggest revenue driver for these two players– is set to intensify as proceed to 2018. Amazon is introducing Smartphone under a private label to take on its homegrown rival, which too introduced Billion Caputure earlier this year.
Called Crafted for Amazon, the e-commerce major has worked with two OEMs– Huaqin Technology and Longcheer to build these smartphones. While Amazon has soft-launched two such phones in the past few months, it is bringing a sub Rs 10,000 smartphone under the brand in January.
Manish Tiwary, VP, Amazon India, said the company will strike similar arrangements for other categories under ‘Crafted for Amazon’ programme. Tiwary, seen as the second most influential executive in Amazon India after Amit Agarwal who heads up the e-commerce major here, claimed their smartphone business grew 95% in value terms between July 2016 and June 2017 while the growth in value terms was 85% for the last two quarters.
“After crunching the data we figured, users are looking for good battery at an attractive pricing. Processors are equally important for these consumers. With these inputs, we have worked together with our partners to bring the new Tenor D (10. or) in January,” he said.
Flipkart’s co-founder Sachin Bansal, who was the mastermind behind launching the Billion private brands this year, introduced smartphones last month. Flipkart has been pushing into the market multiple private labels over the last one year to better its margins.
Smartphones have been the most important segment of products for e-tailers in India as they are a significant part of their overall sales. Even though the margins are thin in the space, e-commerce companies tend to focus on the volume, play to bulk up their sales.During 2017, third party data pointed that there was a tough fight between these two players in the smartphones segment.
“We have the best brands launching their latest model with us. Brands like One Plus have been our long-term partners. I have shared in the growth numbers of this year and I don’t see that changing in the next year,” Tiwary said. Amazon has other private labels here like Myx, Symbol, Solimo in other categories.