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E-commerce Market Trends More “flat”, Mobile Category 'outbreak index' Drops to 1.6

The mobile phone category in China's e-commerce market is entering a relatively stable development phase, with the peak levels of e-commerce promotions gradually declining.

According to Sandalwood’s monitoring data of the Chinese e-commerce market, during the first wave of “Double 11” (October 22 to October 31), the scale of mobile phone sales on China's e-commerce platforms showed a significant year-over-year decline. Compared to the same period last year, sales volume and revenue fell by 13% and 15%, respectively.

Looking at the surge multiplier on a month-over-month basis, the average daily sales volume during the first sale stage was 1.6 times the normal daily sales level from October 1 to 21. In the same period of 2022, this multiplier was 2.1 times. This indicates that the growth rate for this year's first sale phase did not reach the level of the previous year compared to normal sales.

The revenue explosion multiple also reflects the same trend. The level of sales revenue during this year's first sale phase was 1.9 times the normal sales level, whereas last year at the same time, the multiplier reached 2.7 times. The peak level of mobile category promotions in e-commerce has declined.

From January to October 2023, looking at the overall sales of the mobile phone category in e-commerce, the volume slightly decreased by 0.2%, while revenue grew by 14% year-over-year; the overall e-commerce market for the full year still maintains relative stability. We are facing an increasingly "level" e-commerce market with diminishing fluctuations; however, in such a market, the mobile phone category is unleashing new structural growth dynamics.

High-end Market Structure is Being Reshaped, Android and HarmonyOS 4000+ See an 80% Year-Over-Year Increase

The product structures of Android and HarmonyOS manufacturers are steadily upgrading. Sandalwood's monitoring data for the Chinese e-commerce market show that during the initial sales phase of Double 11, the sales volume of Android and HarmonyOS at the 4000+ price point increased by 80% year-over-year. Within this, the sales volume for products in the 4000-5000 yuan price range grew steadily. In the 5000-6000 yuan price range, the growth rate of sales was close to 50%. When it comes to the 6000-7000 yuan price range, the speed of sales volume growth nearly doubled.

In all price segments above 7000 yuan, the growth rate of sales volume exceeded 100%. Notably, in the 7000-8000 yuan price range, the sales volume growth was most significant, reaching 758%. In the ultra-premium market of 10000+ yuan, the sales growth of Android and HarmonyOS was also strong, at 341%.

Android and HarmonyOS manufacturers are forming a tiered upward trend in the high-end market, and their competitiveness is steadily increasing across various price segments. With a relatively solid foundation at the bottom of the high-end market, strength is accumulating in the mid-range, and performance is increasingly prominent in the ultra-premium segment.

At the same time, Apple continues to strengthen its Pro Max product line this year, with the average selling price of iPhones continuing to rise, from 7378 yuan in the same period last year to 7893 yuan this year. During the initial sales phase of Double 11, Apple's sales volume in each price segment below 10000 yuan experienced varying degrees of year-over-year decline; however, in the ultra-premium market of 10000+ yuan, there was a year-over-year increase of 26%, becoming Apple's only growing price segment. Thus, the competition structure of the high-end smartphone market is being reshaped, evolving towards a more balanced configuration.

Foldable Screen Phones Gradually Become Mainstream in the High-End Market, with a 203% Year-Over-Year Increase during “Double 11”

During the initial sales phase of Double 11, foldable screen phone sales increased by 203% year-over-year. As manufacturers' product lineups for foldable screen phones become more comprehensive and the product experience significantly improves, foldable screen phones are becoming a distinctive product form with high recognition, especially compared to Android, HarmonyOS, and iPhones.

According to Sandalwood's monitoring data of the Chinese e-commerce market, during this year's Double 11 period, foldable screen phones maintained rapid growth across all price segments. Notably, in the 10000+ yuan and 6000-8000 yuan price ranges, sales volumes of foldable screen phones increased by 208% and 500% year-over-year, respectively. This indicates that the market for foldable screen phones is continuously expanding across price ranges, reflecting a gradual increase in consumer acceptance of the foldable screen phone form factor.

The market share of foldable screen phones in the 6000+ yuan price range increased from 1.3% in the same period last year to 5% this year. This growth demonstrates that foldable screen phones are crossing the threshold of market growth, evolving from a niche product category to a mainstream form in the high-end market.

The penetration rate for 512G/1TB products across all price points increased, with a 208% year-over-year growth during “Double 11”

Memory and storage  are key decision-making factors for consumers when purchasing and using mobile phones. According to Sandalwood's monitoring data of the Chinese e-commerce market, during the initial sales period of Singles' Day, mobile phones with 512G/1TB of storage saw a year-over-year sales increase of 208%. For phones priced over 10,000 RMB, those with large storage capacities have reached a market share of 82%; meanwhile, significant growth in market share was also observed in the price segments of 6,000-8,000 RMB and 2,000-3,000 RMB.

For the 6,000-8,000 RMB price range, which is the main price point for manufacturers targeting the high-end market with their flagship slate smartphones, the market share for phones with 512G/1TB of storage grew from 3% in the same period last year to 28%.

In the 2,000-3,000 RMB price segment, the market share for phones with 512G/1TB of storage also increased from 4% in the same period last year to 36%; particularly since the 618 shopping festival, the mid-range price segment has continued to be the most competitive, with storage becoming a key competitive element. By Singles' Day, this competition had further spread to the 1,500 RMB price range, with large storage phones achieving a breakthrough from virtually zero market share, growing from 0.3% last year to 6.6% in the 1,000-2,000 RMB price segment.