From metros to tier 2+ cities: Flipkart VP of Electronics reveals landscape and future of electronics in India

As India's tech appetite grows, understanding the nuances of consumer preferences across diverse regions becomes paramount. In an exclusive interview with Business Today, Jagjeet Harode, Vice President of Electronics at Flipkart, delves into the evolving landscape of India's electronics market. Discover how Flipkart is catering to the unique demands of tech-savvy consumers, the rise of premiumisation beyond major cities, and the trends shaping the future of electronics in India.

PD: Why is Flipkart a preferred destination for electronics?

Jagjeet Harode: Flipkart has firmly established itself as the leading destination for electronics in India, offering a wide range of the latest electronics products on its platform across all budgets and needs. We have witnessed a strong increase in the demand for electronics by being one of the first in the market to launch an array of new, innovative, and India-first tech products at affordable pricing. 

Flipkart continues to be one of the few players that provide several differentiated products like Metashots (gaming bats) and Wristphones (LTE-enabled smartwatches). With features like video assistance, Gen-AI-powered chatbots, & Live Commerce, Flipkart enables millions of customers to make informed buying decisions that help improve the overall shopping experience. Through strategic collaborations with several Indian and global brands, we bring a diverse range of new launches on our platform thereby providing access to the latest technology to consumers across Bharat. Affordability is another key focus area for us which is ensured through No-Cost EMI options and special bank offers along with an open-box delivery service that builds trust by guaranteeing the authenticity of products delivered. With an extensive logistics network, Flipkart ensures timely delivery across India, including tier-2 cities and beyond, making technology accessible to a broad customer base.

PD: What proportion of premium customers fall within the young age demographic, particularly in tier 2+ cities and which are the leading models?

Jagjeet Harode: With an aspiration for a better lifestyle, Flipkart is witnessing a 3X rise in young customers opting for premium products, particularly in tier-2 cities and beyond such as Bhubaneswar, Coimbatore, Ernakulam, Guwahati, Gorakhpur, Guntur, Lucknow, Panipat, Surat, and Visakhapatnam among others. This demographic of young customers makes up close to one-third of our premium customer base in tier-2 cities alone, highlighting their growing disposable income and affinity for advanced technology.

These young consumers are tech-savvy and gravitate towards feature-rich models that align with their lifestyles. These customers view Tech as a lifestyle product, enjoying vibrant colours in their electronic gadgets. Popular choices for audio include the Apple AirPods, OnePlus Buds 3, realme Buds Air 5, Boat Nirvana, and Motorola Buds, among several others. The interest extends beyond audio, with gaming laptops like the Asus ROG series and 5G tablets finding strong traction, showcasing their enthusiasm for cutting-edge gadgets. Demand for smartwatches is also high amongst youngsters with Noise Icon 2, Samsung Galaxy Watch 4 Classic LTE, Apple Watch Series 9, and Fastrack Revoltt FS1 being some of the most-preferred choices.

Recognising this trend, Flipkart through its sellers, curates an expansive selection of devices catering specifically to students. This includes laptops and tablets that empower them with the essential tools for academic success. 

PD: How do sales trends for electronics vary across tier 1, tier 2, and tier 3 cities, showcasing the diverse preferences of users in India compared to the previous year?

Jagjeet Harode: Metro and Tier 1 consumers are picking on new trends, better specs, and adoption of new device types every year and we have seen strong premiumisation trends across product categories. 

60% of the demand on our platform for electronics categories comes from Tier 2 and beyond cities. By expanding our reach and offerings, we're making high-quality electronics accessible to a wider audience across the country. By creating best-of-its-kind value offerings for Tier 2 and beyond customers, Flipkart is able to tap into a first-time user base for electronics. Affordable selection & awareness are driving growth for segments like Smartwatches, Tablets & Audio. The demand for premium products from Tier 2 customers has spiked by 1.2X, reflecting their emerging preference for premium features.

Flipkart is witnessing high demand for categories like Laptop, Tablets, TWS, and Home speakers, where laptops and tablets are clocking a high double-digit growth every month, especially in Metros. The increasing popularity of OTT platforms & video streaming services, providing a convenient & immersive entertainment experience is fueling the growth of segments like Tablets & Audio Devices. While offering a variety of new launches, the metro users get an opportunity to upgrade to new tech. Products like home surveillance cameras see a consistent consumer base in Metro and strong growth in Tier 2 and 3 cities. 

PD: What factors are contributing to the growth of the electronics market in India?

Jagjeet Harode: We are experiencing a massive demand in India's electronics market over the last few quarters driven by several factors. Rising disposable incomes are putting advanced electronics within reach for more consumers. Continuous innovations in areas like True Wireless Stereo (TWS) earbuds, smartwatches, and 5G are exciting customers with improved functionalities. Local manufacturing and assembly of electronic products have also significantly contributed to this increased accessibility. The rise of Direct-to-Consumer (D2C) brands like Boat, Boult, Firebolt, and Noise in the audio and smartwatch segments has also accelerated this trend.

This shift not only makes electronics more affordable but also supports the local economy and ensures quicker turnaround times for consumers. In the last few years, we saw first-time consumers buying these high-tech affordable products and now we are seeing upgrade cycles playing out. Some categories have picked up growth faster than others - Laptop, Tablets, and Audio devices continue to grow at 2X industry average at Flipkart while smartwatches are likely to pick up the upgrade-led growth in the second half of the year. New-age categories like Gaming consoles have seen strong demand-led growth in Tier 2 cities.

PD: Which devices and brands are leading in electronics?

Jagjeet Harode: While devices such as TWS earbuds are gaining immense popularity due to their innovative features and affordability, smartwatches are also seeing significant advancements, offering feature-rich devices at competitive prices. Over-ear headphones have witnessed a spike in demand as well from budget-conscious consumers and high-end audio enthusiasts. The latest thin and light laptops continue to impress with sleek designs and powerful performance, while gaming laptops are in demand for their high-performance capabilities and advanced cooling systems. High-speed 5G tablets are emerging as versatile devices, offering exceptional performance, stunning displays, and a range of use cases from professional work to entertainment. Brands such as Samsung, Apple, HP, Asus, Acer, OnePlus, Boat, Noise, Realme, Nothing, and Motorola are in demand among consumers. 

PD: How is Flipkart able to curb fake product reviews or phenomena like review bombing?

Jagjeet Harode: We understand the importance of genuine customer reviews and value them as they help other customers make informed buying decisions. At Flipkart, we leverage advanced algorithms and machine learning to identify and remove fake reviews or attempts at review bombing. This ensures our customers receive authentic feedback to guide their purchases better. We believe online platforms must have robust frameworks in place that can strengthen consumer trust by regulating online reviews and promoting transparency. We are committed to protecting consumer interests and fostering a trustworthy online shopping environment for everyone.

PD: What are the key trends influencing the buying behaviour?

Jagjeet Harode: At Flipkart, we keep a close watch on the industry trends so we can improvise and offer the latest range of products to our consumers and empower them with the transformative potential of technology. Some of the key trends that are shaping consumers’ buying patterns in recent times are:

Customers prioritising convenience: There's a clear shift from wired to True Wireless Stereo (TWS) earbuds. Consumers crave the freedom and portability of these compact, wire-free designs
Lifestyle-focused products: Tech has become a lifestyle, leading to the growing acceptance of lifestyle-enhancing products like trimmers, hair dryers, massagers, and colourful tech accessories

Increase in women shoppers: The demographic of electronics consumers is shifting, with a 30% increase in demand from women shoppers as compared to last year. It reflects a more inclusive and diverse market landscape

Gamers on the rise: The burgeoning gaming community is fueling the demand for high-performance devices. Gamers seek top-of-the-line graphics cards and processing power, driving the market for gaming laptops, handheld PCs, and gaming consoles

Rise in OTT: The surge in content consumption and OTT platforms is leading to a preference for tablets. These devices offer an immersive viewing experience on a larger screen compared to smartphones, perfect for on-the-go entertainment
Health tech becoming a priority: With a heightened focus on health and wellness, there's a rising demand for smartwatches, digital weighing scales, and advanced health monitors. These devices empower consumers to conveniently track and monitor their health metrics

As a home-grown brand, Flipkart curates a large array of innovative electronics products at affordable prices, in line with the current industry trends and consumers’ preferences across the country. We continue to build on bringing innovation and industry-first products to the market and delight the consumers.