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Online Home Purchase Boom in India

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Madhumita Mondal, a resident of Mumbai made a decision to buy an apartment online. A strange but appealing feeling that save time and also offers mouthwatering discount compared to tradition offline purchase. Mondal spent $ 159,000 (10.1 million rupees) on a 3 bedroom apartment located in Mumbai suburbs. According to Mondal, normally she purchases books and dresses on Snapdeal.com, but when she saw the apartment advertised with good discount, she decided to give it a try to save time and money. A decision that changed her online experience.

‘Rather than having to go through property agencies off-line, this experience is much better,’ Mondal commented.

While it seems difficult to spend hundreds of thousands of rupees online, many Indians are happy about it. Property is being sold online and huge internet sales realized. Developers are getting an easy time disposing off the excess supply while consumers find it easy to buy houses with good discounts. Over the past few weeks, both Mantri Developers Ltd and Tata Housing Development Co made sales of $ 1 million each on Snapdeal. In the past one year, Snapdeal, Housing.com and 99acres.com are sites that have been making property sales online. More than 1500 apartments of sales online are reported by Tata Housing. The online platforms promise lower prices. In an advert placed on their website, Snapdeal promises low prices, ‘obtain unbelievable discounts’ the advertisement reads.

Cost Conscious

The managing director and chairman of Mumbai-based developer Rustomjee Group had this to say, ‘Indians are very conscious on cost. They believe that online platforms and mass buying are cheap methods of buying anything.’ More than 30 apartments have been sold online by Rustomjee Group through a brokerage site where buyers are directed to Rustomjee to make the sale complete. ‘We observe traditions on most things while in India, we embrace technology and what it has to offer. I see a lot of potential in the manner in which the internet can make changes in sale of apartments.’

For a new construction, the sites for online sales work in the same manner as an offline showroom belonging to a developer. Instead of going in person to view the photos and proposed models, the potential customer only has to make a few clicks. He/she is able to view the neighborhood and see how the building and units look like. He also gets an opportunity to see the reviews and ratings from other buyers. Also available is a walk-through of the three dimension furnished apartment.

Big Discounts

A good example of a typical discount is an apartment worth 6.5 million rupee which was built in Bengaluru by Ardente Realtors. The mortgage interest payment of 800,000 rupees (12 % purchase price) was being slashed off on this apartment if the purchase is made through Housing.com.

When a down payment of $ 1,600 is made by the customer on the ecommerce platform, the buyer is contacted by the developer in order to assist mortgage financing arrangements through the bank if need be. The option of paying the balance through online banking is also available.

‘Unlike offline real estate brokers, online commissions for sellers are lower,’ said Rustomjee Irani. He didn’t give further details. Snapdeal also failed to give more information on commissions. In some markets, developers are using the site so that they can offload excess supply in the markets. In the first quarter of the year, there was a total of 192.3 million square feet of unsold homes. This was expected to take 3 years and 10 months for them to be sold at the prevailing pace in Mumbai. This is according to a research and real estate consulting firm, Liases Foras Real Estate Rating & Research Pvt. There is 8-12 months inventory required to be maintained for a healthy market.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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E-commerce Black Friday Sales Estimated to Surge by 40% to 10.2 Billion

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The 2020 holiday shopping season will be unique, as the pandemic shifted consumer behavior from retail stores to online shopping. In response, many retailers moved their services online to not miss out on this year’s profits. Atlas VPN team decided to look into how e-commerce sales are set to perform in the upcoming long weekend.

Researchers predict that the US e-commerce revenue will exceed last year’s earnings by 49.5% on Thanksgiving day, totaling $6.18 billion in revenue. Black Friday is calculated to reach $10.2 billion in sales, exceeding last years numbers by 39.4%

Rachel Welch, COO of Atlas VPN, shares her tips on how to stay safe when shopping online during the holiday season:

“Watch out for too-good-to-be-true deals from unknown sellers, as cybercriminals will also expect to turn a profit during the holiday season, even though they are not selling anything, except maybe a bag full of disappointment.”

 Finally, analysis shows that on the last day of the long and full of special offers Thanksgiving weekend, consumers will go all out to bring record sales for e-commerce businesses, adding up to $12.89 billion.

To look at these five days from a wider perspective, e-commerce companies can expect to earn around 39.72% more than they did last year.

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Alibaba Merchants Sell $40B in First Half Hour of Singles Day 2020, More than 2019 Event Full Sales

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Singles Day 2020 was a roaring success, cementing its position as the world’s biggest shopping holiday. Sales across Alibaba’s platforms during the event totaled $74.1 billion, up from $38 billion in 2019.

According to the research data analyzed and published by Stock Apps, within the first 30 minutes of the event, the gross merchandise volume (GMV) surpassed 2019’s full-event sales, reaching $40.87 billion.

Moreover, instead of live events, Alibaba had 400 company executives and 30 celebrities hosting livestreams. Based on a study by Coresight, the Chinese livestream market is set to rack in sales worth $125 billion in 2020, compared to $63 billion in 2019. The US livestream market is a small fraction of that, valued at $5 billion.

China’s Tech Heavyweights Lose $280 Billion in Market Cap

Alibaba Singles Day 2020 dwarfed other major shopping holidays as has been the trend in previous years.

According to Practical eCommerce, Amazon Prime Day 2020 sales totaled $10.4 billion up from $7.16 billion in 2019. Cyber Monday sales in the US amounted to $7.9 billion in 2020 according to Statista. Black Friday and Thanksgiving added $9.7 billion to the figure to make $17.6 billion for the weekend.

Similarly, in 2018, Singles Day sold $30.8 billion while Prime Day sold $4.19 billion and Thanksgiving weekend got $14.2 billion.

However, the 2020 Singles Day event came in the wake of Ant Group’s suspension of a $37 billion listing. The suspension resulted in a $76 billion drop in Alibaba’s market cap, as the tech giant owns a two-thirds stake in Ant Group. Moreover, China’s regulators released anti-trust draft rules prior to the event, aimed at controlling monopolistic behavior.

Following the release, Alibaba shares plunged by 9.8%, as JD.com shed off 9.2%. Tencent similarly saw a 7.39% drop and Xiaomi fell by 8.18%. For the five companies, there was a combined loss of $280 billion in market capitalization.

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Top Three PC Vendors Shipped 121.5 Million Units in 2020, Lenovo Leads with 47.1 Million Shipments

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Remote working and distance learning amid the coronavirus outbreak continue increasing global demand for PCs and laptops. After a sharp fall in the first quarter of 2020, global PC shipments have grown in the last six months, despite the effects of the COVID-19 crisis.

According to data presented by Stock App, Lenovo, HP, and Dell, as the world’s three largest PC manufacturers, shipped 121.5 million units in the nine months of 2020. With 47.1 million shipments in this period, Lenovo tops the global PC vendor ranking.

More than 187 Million PCs Shipped Between January and September, a 1.6% Drop YoY

The rise in smartphone usage and the global shift from hardware to cloud solutions had been driving a downturn in global PC shipment for seven years in a row. In 2011, 365.3 million units were shipped worldwide, revealed the Gartner data. By the end of 2017, this figure dropped by almost 30% to 262.7 million.

The 2018 shortage in Intel central processing units brought a new hit for merchants’ supply chains and cut global shipments to 259.7 million that year, under 2007 levels.

In 2019, 261.2 million PCs were shipped worldwide, which was a slight increase from 2018 figures. However, the COVID-19 outbreak triggered the biggest fall in shipment since 2013, as pandemic affected supply chains.

The Gartner data showed 51.6 million PC units were shipped in the first quarter of 2020, down 12.3% from the previous year. Between April and June, the market started showing signs of recovery, with global PC shipment rising by 2.8% YoY to 64.8 million.

Consumer demand for PCs due to remote working, home entertainment, and distance learning amid an ongoing pandemic, along with the strongest US PC market growth in a decade, drove the global market momentum in the third quarter of the year. Between July and September, 71.4 million PCs were shipped worldwide, a 3.6% jump year-over-year.

Statistics show that 187.8 million PCs were shipped worldwide in the nine months of 2020, a 1.6% drop YoY.

Lenovo`s Sales Rose in 2020, HP`s Market Share Dropped Down

The Gartner data also revealed that Lenovo, as the market leader, increased its market share in 2020, despite the COVID-19 pandemic. In the fourth quarter of 2019, the Chinese tech giant had a 24.8% market share, with 17.5 million shipments worldwide.

In the third quarter of 2020, the number of shipped units jumped by 8.3% YoY to 18.3 million, while its market share rose to 25.7%.

As the second-largest PC vendor globally, HP hit a 21.6% market share in the third quarter of 2020, down from 22.8% in December last year.

The Gartner data indicate that Dell’s market share, as the third-largest PC vendor globally, dropped from 17.2% in Q4 2019 to 15.2% in Q3 2020. The US computer technology company also witnessed the most significant drop in PC shipments among the top three vendors, with the figure falling from 12.1 million in December to 10.8 million in September.

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