Amazon explains how Apple is driving India's premium boom and why nonstop sales still make sense

India Today

a day ago

Not long ago, we at India Today Tech wrote an opinion piece about the rise of online sales in India and how most of them appear to be a Netflix show with far too many spin-offs. The idea was to understand – as a user – if they were 'a bit much' given how frequently e-commerce players are hosting them. Amazon is obviously one of them. But there are always two sides to a story, which is why, when we got a chance to speak directly to Amazon, we decided to talk about this aspect at length to try and understand the merits of some of these sales decisions and why they exist.advertisementThe conversation – with Zeba Khan, Director of Consumer Electronics at Amazon India – was insightful and, frankly speaking, an eye-opener. With online sales as a focal point, we delved into India's – and invariably Amazon's – larger growth story expedited by growing premiumisation across quarters – and particularly consumer electronics – and reasons why more and more people want to buy premium products – and how Amazon is working round-the-clock to ensure they can.The Amazon approach to consumer engagementHaving previously helmed Amazon India's fashion and beauty business, Khan offers a unique perspective on the similarities and differences in engaging consumers across diverse categories. 'One thing that works for Amazon India across categories is our focus on customer inputs,' Khan explains. 'Providing the latest and widest selection, along with offering strong value – which isn't just about price, but overall affordability – resonates universally.'advertisement
However, the high-consideration nature of consumer electronics presents a unique challenge. Unlike fashion, where customers often desire to 'touch and feel,' tech purchases demand a different kind of assurance. 'In consumer electronics, it's more about providing the best information and helping customers make informed, assisted purchases,' Khan elaborates. "Simplifying the customer's experience is something they truly value."Amazon has invested heavily in making the often-overwhelming world of consumer electronics accessible to everyone. Rufus, the Gen AI shopping assistant, available on the Amazon app, is proving particularly impactful in consumer electronics. 'Customers can share the use case they're looking for, and Rufus will compare products to recommend which ones might be better suited for them,' Khan says, noting its high interaction rate within the category. While a global product, Rufus has been trained on Indian shopping habits and customer behaviour.For customers overwhelmed by choice, Smart Choice offers a curated, simplified selection of laptops and tablets at competitive prices. 'The selection is further divided based on different use cases such as work laptops, gaming, and more,' Khan adds, ensuring a more intuitive shopping experience. This program, too, benefits from extensive local research into how Indian customers approach laptop purchases, whether through price bands or specific use cases.advertisement'There is always a combination of global technology and local customisation, and these always work in tandem,' Khan affirms.The rise of premiumisation in IndiaThe data shows a clear trend: India is increasingly embracing premium products and Amazon seems to be one of the go-to destinations for many buyers. Despite a muted overall market, premium devices (INR 30,000 and above) are experiencing strong double-digit growth, with Tier 2 and Tier 3 cities accounting for almost 70 percent of this demand, Khan shares.While the PC industry has faced headwinds, Amazon is observing good growth, particularly in the premium category in metros (double-digit growth) and the ultra-premium segment (INR 1,00,000 and above), which is soaring at over 30 percent year-on-year. The tablet segment is also rapidly expanding, with premium tablets (INR 30,000 and above) growing at a remarkable 60 percent year-on-year. Notably, 75 percent of premium tablet buyers are first-time purchasers, she adds. Moreover, premium smartwatches (INR 10,000 and above) are seeing a robust 40 percent year-on-year growth after a period of stagnation.'It indicates that our efforts in educating customers about premium selections and improving affordability are moving in the right direction,' Khan says, attributing this success to Amazon's focus on democratising access to the latest technology and making it affordable through various options. Value-added services like phone and laptop setup, installation, and extended warranties, consistently rated 4.85 stars and above across 300 cities, further bolster customer confidence in these high-value purchases.advertisementUnlocking India's potentialAmazon's success in this premiumisation wave is not just about product availability but also about reach. Khan credits the operational prowess of Amazon's teams for servicing '100 percent of serviceable PIN codes in India – which, in a country of this scale, is no small feat.' This extensive network, coupled with continuous efforts to improve delivery speeds and seamless inventory management with vendor and seller partners, ensures that aspirational products are accessible even in the farthest corners of the country.'All of this is driving aspirations upward. For example, a person in a Tier 3 town today wants access to the latest technology,' Khan explains. 'This is where Amazon plays a very critical role because we make it available not only to the last PIN code in India but also make it as affordable as possible.'Apple driving the premium smartphone boomWhen asked specifically about Apple's influence, Khan acknowledges its significant contribution to the premium smartphone segment. 'Apple is a premium smartphone brand that is growing very well. On our platform as well, the premium smartphone segment is the fastest growing for us, and Apple is one of the key brands driving that growth,' she states.advertisementKhan highlights that customers often approach smartphone purchases with a specific brand in mind, and Amazon's role is to facilitate that journey. 'Our role as a retailer is to ensure that we're providing them with the most transparent, complete, and accurate information on our product detail pages,' she says. By offering detailed visuals, videos, expert recommendations, and customer reviews, Amazon empowers consumers to confidently make premium smartphone purchases online.The sale season never endsClearly, the consumer's appetite for premium products is growing – and so are online sales. While it might seem like 'too many sales,' Khan says there is a method to this madness. 'As retailers, our attempt is to create demand moments and meaningful shopping experiences for our customers – across different needs and customer cohorts,' she explains.Beyond the major events like Diwali and Prime Day, Amazon has found tremendous value in creating topical and seasonal sales. Khan cites the example of the 'Electronics Premier League' in March 2025, which timed strategically with the IPL season. 'It was an experimental event for us, and we went in with a learning mindset. But we were pleasantly surprised by how well it performed.' The theme of 'streaming and screening' brought together relevant categories like smartphones, TVs, laptops, and speakers, contextualising the need for upgrades around a popular cultural event.advertisement'Even customers who may not have been actively thinking about upgrading their devices suddenly considered it because we contextualised it for them,' Khan notes. Similarly, 'Back to School' events for laptops and tablets, and 'Gaming Days' catering to a niche, engaged audience, have proven highly successful. 'While it may appear that there are many sales happening, the reality is that each of them serves a distinct purpose and audience,' Khan concludes. 'As long as we can continue to curate experiences that are relevant and meaningful to each cohort, I believe that's the recipe for success.'The first half of the year was strong. Khan remains optimistic about the other half. 'We're now working towards Prime Day, especially in consumer electronics, which is typically a very new-launch-heavy category. We're partnering with a lot of brands for some exciting launches,' she reveals. 'The big moments – Prime Day and the festive season – are yet to come.'Defining success through internal growth milestones and broader industry performance, Khan expresses satisfaction with Amazon's performance so far and hopes that with the right initiatives, including strong partnerships and a nuanced approach to sales, it will continue to reap the benefits, lapping up customers as India ramps up its premiumisation drive.