Why Electronics Hold the Major Share in Indian E-commerce Market?


The sale of electronic products in the Indian E-commerce market has been consistently rising
for quite some time now. As we speak, many newly established Indian ecommerce businesses
are choosing to stock and sell electronics as one of their major products. Common electronics
that can currently be found in Indian online stores include:

  • Portable media players
  • Video players
  • Television sets
  • Cell phones
  • Laptops and PCs
  • Digital Cameras &
  • Camcorders

These are just a fragment of the vast electronic products that are sold to Indian people online.
What’s more, statistics show that the number of electronic merchandise on sale in Indian online
stores is likely to increase even further in the near future. The question remains, why is there a
sudden ‘obsession’ for selling electronic products by Indian ecommerce businesses?

Indians shopping online

1. Few Local Manufacturing Companies

The truth is that there are very few local companies in India that invest in the manufacturing of
electronics. Actually, only Mirc Electronics has shown exceptional interests in manufacturing
and providing electronics in the Indian market. While there are a few other companies that have
gotten into electronic manufacturing, most of them have not yet had any major impact on the
Indian electronic market.

Due to lack of interest in electronics manufacturing in India, there are hardly any major
domestic brands that can give foreign brands a real run for their money. This has led to extreme
preference and loyalty to international brands such as Dell, LG, Nokia and Samsung among
Indian buyers.

As a result of this void in the Indian electronic manufacturing industry, the demand for
electronics has kept on rising sky high. This high demand is what’s driving many ecommerce
businesses to the electronics market.

2. Fast Growing Population

India is one of the world’s most populous countries with way over a billion inhabitants. Coming
second only to China, the population of India is growing at an alarming rate. Considering the
fact that there is little electronic manufacturing activity taking place in the country, manufactured
electronics barely meet the rapidly growing population.

3. Manufacturing Incentive

Until recently, the government of India was not providing any manufacturing incentives that
could encourage local companies to manufacture electronics. The government used to charge
very high taxes on electronics, a factor that made most locally produced electronics more
expensive than imported ones. Buyers consequently would prefer to buy imported electronics
than locally manufactured ones.

Needless to say, manufacturing companies found manufacturing electronics not only expensive
but unprofitable as well. Thus most companies gradually fell out of the electronic manufacturing
industry, heightening the demand of electronics in the Indian market even further. Online Indian
stores have been benefiting from this demand because, as buyers lack the electronics they are
looking for from offline retailers, they immediately resort to online retail.

4. Convenience of Shopping Online

Although the Indian people have long been apprehensive of the idea of purchasing electronic
products online, shoppers are slowly starting to embrace the convenience of online
transactions. For instance, buyers have enough time to browse through the electronics products
they want and make their own choices without necessarily being coerced by salespeople, unlike
offline retail shops.

Additionally, when buying online one can easily and quickly compare the prices of several
stores and decide on who has the best rates. Also, these online stores provide great coupons
from time to time. Many online coupon sites like coupon lava, retailmenot, couponcabin etc.
list these coupons which helps the customer to get the extra discount. The same cannot be
said when it comes to offline retailers. For this reasons, many buyers are starting to opt to buy
electronic products online.

5. Availability of Feedback

When buying items online, you are essentially buying blind. You cannot touch or see the item
you want to purchase, and therefore cannot determine the quality of it. Most online retailers,
especially online Indian stores, have allowed people who have brought the item to give
feedback on the website. These reviews are available for everyone to see, allowing you to judge
the quality and reliability of the item and retailer from other people’s experiences.

Electronics are such an item where reviews are an important part of the purchasing process,
both online and off. Even when buying in a traditional brick and mortar outlet, you still want to
either try it out yourself, or obtain feedback from other people who have already bought it and
have used it. The internet therefore makes buying electronics online a better experience for the


Generally, Indian people are now more than ever looking for a way to stay in touch with the
rapidly advancing technology. Buyers are searching for the latest models of high speed internet
phones, high end laptops with unparalleled graphics or huge storage capacities and more
portable PC tablets.

This is a guest article by Rohit. Rohit likes write about Indian ecommerce and online startups. He is currently working for CouponLava, an Indian coupon website. Reach him at his Google Plus profile.



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