The Indian mobile handset market has grown by 30.17% from 116 mn handsets for the 2008 to 151 mn handsets till 2009, says a report by Analysys Mason. The report further forecasts that the market is expected to grow from a total of 151 mn handsets in 2009 to 402 mn handsets in 2014. The market share for handsets made by new vendors saw a steep rise from below 1% in the first quarter of 2008 to 33% in the quarter ending June 30, 2010. New vendors are described at those that have been in the market less than three years.(IDC report) Key drivers for growth of telecom market.
Replacement handset market rather than new user additions. Consumers are now very receptive towards newer brands
- The replacement market is expected to grow from 118 mn handsets (62.77% of overall Indian mobile handset market) in 2010 to 359 mn handsets till 2014 constituting 89.30% of the overall Indian mobile handset market.
Growth of ‘medium’ Average Selling Price devices (devices with a price in the range of 2,000 to 5,000)
- The contribution of medium ASP (average selling price) devices has increased from 34.48% from 2008 to 45.03%in 2009.
- Volumes increasing from 68 mn handsets in 2009 to 240 mn handsets by 2014.
- Segment is expected to grow at a CAGR of 26.07% in the next 4 years.
Growing rural consumption
- The rural market which is still largely untapped, demands for products that offer basic functionality along with some eye-catching features at competitive pricing
- Most local and low-cost cell phone manufacturers have gained from customizing their products for the rural market.
- “They have been very innovative in terms of loading their phones with a lot of applications – like FM radio and dual SIM card function – even as they have maintained a pricing structure which is very attractive to the Indian buyer
Reaching out to customers
Competition is fierce and the key to survival of the new handset players in India lies in local manufacturing, right pricing and niche segmentation.
The vendors are doing everything, from reaching the remotest part of the country, hiring celebrities like Amitabh Bachchan, Mahendra Singh Dhoni, Virendra Sehwag, and Bipasha Basu to promote their brand-to offering new features like 30 to 70-day long battery life, multi SIM phones carrying 2, 3 and at times 4-SIMs.
Most of the vendors have gone through the unorganized retail route to make their presence felt in various markets, and to reach out to customers.
Success of electronics depends upon: Availability and prompt after-sales services.
3Ps-Price, performance and post-sales can make or break a brand.
Durability (35%) seen as the most important factor while buying a mobile handset, followed by brand preference (29%) and service & support quality (20%).(CMI 2011 Survey Report)
‘Satisfaction with Overall Performance’: India Mobile Handset Users (CMI 2011 Survey)
Majority of Blackberry users (66%) felt their handsets provided ‘excellent’ or ‘very good’ value for money, followed by Nokia users (58%) and Samsung users (57%). Amongst new, emerging brands G’five users (56%) showed the maximum score on the same attributes. Other new, emerging brands like Micromax (54%) and Spice (54%) closely follow this trend. ‘Satisfaction with overall performance’ followed a similar pattern.
Customer care centres
As per CMI report in areas like Customer Care and After Sales Support, niche brands like Blackberry (86%) were able to delight their customers. Emerging brands like Micromax (74%) and Spice (66%) also showed promise on this parameter, at par with the established brands like Nokia (78%), LG (74%) and Samsung (71%).
Company Profiles
LAVA Mobiles:
- Incorporated in March 2009, Based in Uttar Pradesh.
- Company crossed primary of 2 lakh handset in December 2009′ (in just1 month) in just 6 months of operations and in March 31, 2010 Co. touched turnover of 307 crore with currently 2.7 million plus using LAVA handset.
- Presence: UP (W), TN, Gujarat, Bihar, Jharkhand, WB, NE, Orissa, AP, Karnataka & Kerala, Maharashtra and Goa.
- Awarded as “Fastest Growing Mobile Phone Indian Brand” by CMAI (Communications Multimedia and Infrastructure) Association of India during National Telecom Awards ceremony 2011.
- Products:
- The phones manufactured by this company come along with wide array of features such as GPRS, Bluetooth and EDGE connectivity for internet users, FM Radio and Music player for those who like to listen to music all the time, Camera phones for those who prefer it, Dual SIM phones to integrate personal and professional life in one phone and other such functions at a reasonably lower prices.
- Key Models:
- A10: Touch phone and sleek
- B6 : Qwerty key pad/Alpha
- M30: Music phone
- ARCO5: Extra Slim design
New products in pipeline: Tablets
- Company Message: “Get the Power in Your Hand”
- Vision: To give power to consumers in terms of featured handsets at a very economical price.
- Empower people with mobile devices that fulfil unmet needs of Indian consumers
- Power and integrity with a dash of simplicity
- Brand Ambassador: None
Karbonn Mobiles Founded in March 2009.
- It is a joint venture Mobile manufacturing company between the Bangalore based United Telelinks Limited (A group of Telecom Major, United Telecoms Limited) and Noida based Jaina Marketing & Associates. The company’s total investment in Indian consumer market is over $5 million and expects to gain Rs. 1000 Crore revenue in the current fiscal year.
- The company has tied up with leading semiconductor companies worldwide for their handsets and targets mainly the budget conscious consumers. The company currently has around 150 exclusively dedicated Service centres for Karbonn all over India.
- Karbonn is setting up its foot prints outside India staring with Bangladesh and will soon reach Sri Lanka and Nepal followed by Middle East and Africa. Sale and distribution network of Karbonn covers around 80% of the district in all the Indian states.
- Message: Stunning aesthetics meet unrivalled innovation
- Brand Ambassador: Virender Sehwag
Micromax : Nothing Like Anything
Third largest mobile handset sellers in India
- Sells more than a million handsets a month with a market share of around 10%
- Has a presence in more than 500 districts through 34 “super-distributors”, 450 distributors and 70,000 retailers
- Micromax is gaining market share in India by making cheap phones with long battery life and offering other features local consumers want.
- Its first handset was the Micromax X1 boasting a month-long battery life
- Posted revenues of Rs 1,600 crore and a net profit of Rs 150 crore in 2009-10
- Strategy: Innovating, designing and using the latest technology to develop products at affordable price
- Brand Ambassador: Akshay Kumar