Amazon expects premiumisation trend to continue across consumer segments

Zeba Khan, Director, Consumer Electronics, Amazon India

The trend of strong sales growth in premium products will continue with the premiumisation happening in tier II and III cities as well across consumer segments, said Zeba Khan, Director, Consumer Electronics, Amazon India.

“In our premium segments, we see almost 30 per cent to 40 per cent people are buying premium products with no-cost EMIs. So this will continue to grow. There is huge room to grow here,” Khan told businessline.

“So far the year has been very good for us. We are seeing growth across consumer electronics — be it smartphones, laptops and home appliances. We are growing significantly ahead of the market,” Khan said.

The e-commerce giant said it is witnessing higher sales growth in terms of value in premium products within all consumer electronics segments.

“Especially, in premium segments we are seeing a lot of growth. Within smartphones, the ₹30,000 and above products are growing at almost 45-46 per cent for us. When we talk about premium laptops, we are again seeing them grow very strong double digits. Again, for TVs 55 inches and above, we have literally doubled our sales. So in all of these consumer electronic segments, premium segments are really going fast this time as well,” said the Amazon India director.

According to Khan, a lot of these premium products are being bought by people who are entering the category for the first time.

“So, 75 per cent of the premium tablet buyers are first time buyers, which gives us a lot of confidence. Even people who are entering the category, they want to start with premium. That means our affordability options are working,” she said.

Amazon expects this premiumisation trend to continue.

“One of the reasons we believe that this trend is happening is because, like in Amazon, we offer the widest selection. So, from the most premium you can get all price brands in every corner of the country. With e-commerce booming and growing, platforms like Amazon are providing the widest selection in the market. Obviously, customers are getting exposed to a lot more technology and premium choices. And hence, it will continue to grow,” Khan said, adding the company is witnessing all of this premiumisation in tier II and III cities as well, where the business is growing very fast.

In large appliances, tier II cities are showing over 20 per cent growth, while in the audio segment, premium headphone sales are clocking around 20 per cent growth in tier II and III cities. In TVs, double-digit growth is coming from tier II cities. In smartphones, tier II and III cities are contributing over 70 per cent to the total volume that the e-commerce major sells pan-India.

“These are the figures for the last six months this year compared to the same period last year. These are all very encouraging data points for us, and these are the kind of trends that we are seeing beyond metros.” Khan added.

This year, Amazon India’s shopping extravaganza, “Prime Day 2025”, will start from July 12 and will continue till July 14. During the Prime Day, the e-commerce player will launch new products and offer new schemes across categories including smartphones, electronics, TVs, appliances, Amazon devices, fashion, beauty, home & kitchen, furniture, grocery, and everyday essentials for its prime subscribers.

The Seattle-based company currently has over 200 million prime subscribers worldwide.

Published on July 7, 2025