Smartphone Market Shakeup: 5 Shocking Reasons Why Offline Retail Is Dominating India in 2025

India’s smartphone market is witnessing a decisive shift from online dominance to offline retail, driven by premiumization, consumer trust, and financing accessibility. Offline channels now account for higher average selling prices ($303 vs. $246 online) as buyers prefer hands-on experience before purchasing, especially for premium devices like foldables and AI-powered flagships. Brands like Xiaomi, Realme, and Motorola are aggressively expanding their offline presence, with some seeing over 50% of sales from physical stores.

Financing options in smaller towns, government crackdowns on grey markets, and the need for ecosystem demonstrations (smartwatches, tablets) further fuel this trend. While online sales remain seasonal, offline retail ensures steady demand year-round. The future lies in omnichannel strategies—seamlessly integrating online discovery with offline purchases—as consumers increasingly browse digitally but buy in-store. To stay competitive, brands must align pricing, improve sales tracking, and enhance experiential retail. Ultimately, India’s maturing smartphone market is reshaping around offline-first growth, making it the new battleground for dominance.

Smartphone Market Shakeup: 5 Shocking Reasons Why Offline Retail Is Dominating India in 2025

For years, India’s smartphone market was split between online-first brands chasing affordability and offline giants banking on trust and reach. But the game is changing. Today, offline retail is driving premium sales, deeper market penetration, and consistent growth—while online sales remain largely seasonal.  

The shift is undeniable. According to Canalys, offline average selling prices (ASPs) surged from $196 in Q1 2022 to $303 in Q1 2025, outpacing online ASP growth. Consumers, especially replacement buyers, now prefer in-store experiences—testing devices, comparing specs, and securing financing before purchasing.  

Why Are Brands Going Offline? 

• Premiumization Needs Physical Touchpoints  

• High-value smartphones (foldables, AI-powered flagships) sell better when customers can experience them firsthand.  

• Brands like Motorola saw a boost in Razr foldable sales after expanding retail presence.  

• Samsung’s “Learn at Samsung” workshops help users explore Galaxy AI features in person. 

• Financing Drives Tier 3-5 City Sales  

• Offline stores dominate EMI and financing options outside metros.  

• POCO, vivo, and Samsung leverage local NBFCs and dealer-led EMI schemes to attract budget-conscious buyers. 

• Ecosystem Selling Works Better In-Store  

• Smartphones are now part of larger ecosystems (watches, earbuds, tablets).  

• Physical stores let brands showcase how devices work together—boosting multi-device adoption. 

• Government Crackdown on Grey Markets  

• Stricter GST compliance and retail digitization have formalized offline sales.  

• Consumers trust authorized retailers over shady online resellers selling pre-activated devices. 

Online-Centric Brands Adapting to Offline 

• Xiaomi (Redmi): Offline contribution jumped from 38% (2022) to 66% (2024).  

• realme: Offline share grew to 51% (2024), driven by GT and Number series.  

• OnePlus & POCO: Expanded via JioMart Digital’s 100,000+ retail network in smaller towns. 

The Future: Omnichannel Harmony 

The line between online and offline is blurring. Many customers:  

• Browse online, buy offline (after testing).  

• Purchase online but pick up in-store (hybrid fulfillment). 

To succeed, brands must: 

✔ Align pricing & promotions across channels to avoid retailer distrust. 

✔ Improve sales attribution to track online-to-offline journeys. 

✔ Invest in experiential retail (demos, workshops, ecosystem displays).  

Final Takeaway 

India’s smartphone market is maturing, and offline retail is the new battleground. Brands that balance online reach with offline trust will win in this evolving landscape.  

What’s your take—do you still prefer buying phones online, or has offline retail won you over? Let us know in the comments!