The current market sentiments seem like the perfect opportunity in terms of consumer preferences for LAVA & MICROMAX to gain back their foothold in the smartphone market.
In 2014, Micromax had dethroned Samsung as the countryās top-selling brand. Even in 2015, Indian brands controlled 45% of the countryās smartphone market, with Chinese brands at only 9%, according to data from Counterpoint Research. Their failure to adapt to the advent of 4G, however, caused a stunning reversal in fortunes. Today, Micromax and Lavaāthe two biggest Indian brandsātogether account for only 0.4% of the smartphone market.
With the Chinese brands moving up the value chain as they look to drive margins up, Indian brands could move into the wallet-friendly sub-Rs 15,000 ($200) segment. āWe plan to launch two models in July,ā says Mugdh Rajit, Lavaās head for marketing, sales and distribution strategy. āOur main focus will be on the Rs 7,000-15,000 ($90-200) price band. We already have a good market share in feature phones and we can build on that to get a share from upgrading users.ā Analysts, though, caution that upgrades will be slower than usual given that affordability at all levels have taken a hit.
Rajit believes that the company has the required infrastructure and is willing to make investments in marketing as well. At present, it boasts a network of 120,000 retailers across India. āItās just the product piece thatās missing right now,ā he says.
In May this year, the company announced a plan to shift its R&D, design and manufacturing from China to India, in the process investing Rs 800 crore.
With all the claimants to the Chinese brandsā dominance looking at a combination of local manufacturing and budget-friendly phones, the real winners from the anti-China smartphone wave could be customers and the governmentās Make in India scheme.
Sandip Ginodia , Director
ALTIUS INVESTECH PVT LTD
We deal in over 60 unlisted companies with 15 years of experience .
Email : ginodiasandip1@gmail.com
Comments
Post a Comment
Please leave your name and email id along with the comment .
Get the updates from this blog direct to your inbox . Fill in your email id on the home page.