Competitive Landscape of Indian Mobile Retail Market
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8/9/2019 Competitive Landscape of Indian Mobile Retail Market
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Competitive landscape of Indianmobile retail market
According to international data corporation, India was the fastest growing
smartphone market in Asia/ Pacic with a quarter- on quarter growth of !"# in $%
!&'() *he India smartphone market outshone other emerging markets in the Asia/
Pacic region) +IC Announces India As *he astest .rowing martphone 0arket In
Asia/Pacic In $% !&'(, !&'(1)
*he ma2or pla3ers in the Indian retail market are amsung, microma4, lava,
karbonn, 0otorola, apple and others)
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amsung is the market leader in Indian mobile market followed b3 0icroma4 and
5ava)
A competitive landscape mapping should be done to better understand the di6erent
dimensions of the Indian mobile market)
7etail 5andscape
Samsung
• Retail Strategy:
amsung releases a wide range of Android-based models ever3 3ear that
cater to low-end as well as high-end customers in India) 0ost of the amsungsmart phone models run on Android operating s3stem which is considered
more user-friendl3 than the Apple based i8 operating s3stem) amsung9s
strateg3 is to boost sales in low-penetration but fast-growing market) or this
it set up ',&&& such stores this 3ear in tier I: and : markets in !&'() *he
stores si;e will be %&&-(&& sq ft stores and have limited inventor3 and demo
units, which will lower operating costs, and will be serviced b3 distributors on
a dail3 basis)• Availability:
amsung runs over !,&&& e4clusive brand stores in India under the franchisee
model, of which ','&& are of the martphone Cafe format, where onl3 smart
phones and tablets are sold) martphone Cafes account for 'okia and China-based as well as Indian telecom handset sellers b3 being
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more innovative, b3 being smarter on the street in terms of in its retail and its
distribution part, building more aspirational brands)• Online Presence:
amsung started selling its mobile devices online in !&'') *he corporate
communications department at amsung feels that the convenience provided
b3 the online format and the charm of an additional channel gives a lot of in?uence over customer9s decision and act as a referral medium) *he social
media strateg3 of amsung mobile focuses on gala43 note ll and gala43 @@
through facebook, twitter and 3outube)
References:http//articles)economictimes)indiatimes)com/!&'(-&(-
&B/news/(B%("!D'Dmicroma4-vineet-tane2a-stores
http//blogs)ws2)com/indiarealtime/!&'%/&E/!'/samsung-smartphones-take-lead-in-
india/
http//www)telegraphindia)com/''%&(&B/2sp/business/stor3D'E"GsHd
Hc$c
http//www)socialsamosa)com/!&'%/&'/social-media-strateg3-review-samsung-
mobile-india/
Micromax
Retail strategy:elivering the right value at the right price seems to be the core of the
compan39s strateg3) It does this b3 ensuring it has enough o6erings in a
h3per-competitive market and basing its products on o6-the-shelf technolog3+which is alwa3s cheaper than a proprietar3 one1) nder this new partnership,
Aircel and 0icroma4 will share their Channel and 7etail >etworks, ales
7esources and run an integrated device sales activation program to redene
the user e4perience and take data penetration to the ne4t level) It is
estimated that b3 the 3ear !&!&, mobile internet users are set to grow ( - <
times and smart phone penetration is set to increase < times to
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0icroma4, the Indian smartphone 8J0 has announced a new brand
called YU, which will be online onl3 and Kdirect to the consumer K) *his is
clearl3 a strateg3 0icroma4 has adopted to counter the ever growing threat
from Liaomi, whose recent successes in Indian market has made compan3
e4ecutives sit back and rethink strategies) 0icroma4 isn9t the rst one to go
this route) ew weeks back, Muawei announced that their M8>87 series of smartphones will be solel3 sold online) 5enovo too has gone Konline e4clusive9
for its :INJ series of smartphone) Clearl3, Liaomi and 8nePlus have forced
man3 companies to think di6erent and take an online-onl3 route) Nut unlike
Liaomi, 0icroma4 and others have considerable +and strong1 oOine presence,
so it makes sense to separate their online business with a completel3 new
brand)
References:http//www)livemint)com/Industr3/MAd7sdfeLc
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N*5 +below the line has been integrall3 linked with its strateg3 to e4pand its
retail footprint in the countr3) N*5 activities enhance 5ava=s visibilit3 at the
retail level where the nal purchase decision is made) *hese include
aggressive deplo3ments of hop in hop counters, signage, P8+point of
sale1 material, so on and so forth) Maving done branding at about !',&&&
outlets in the previous nancial 3ear, the strateg3 of focusing on aggressiveN*5 activities at retail outlets will continue this 3ear which is e4pected to be
done in more than %&,&&& outlets)
Online Presence:
5ava9s mart phones and *ablets are the two categories that have been doing
e4tremel3 well through e-commerce) 5ava launched its Iris L' and L<
e4clusivel3 with Ama;on)in accompanied b3 heav3 branding on the e-
commerce platform to generate awareness in the rst few da3s post launch)
5ava9s Iris L' for instance was sold out on the rst da3 of the launch) *he3
had also launched its rst e-store with eNa3 for the convenient purchasing)
*he compan3 has revamped its corporate website, social media marketing,
J0, J8 to connect with the customers directl3) Also engaging through
displa3 campaigns on popular general interest websites such as >avbharat
times, *8I and SahooT *ech websites such as gsmarena)com U tech!)com to
name a few)
5ava to launch new sub-brand of Lolo to recreate Liaomi9s online-onl3 model)
*his will be done through an e4clusive e-commerce portal for conducting the
online sales smoothl3)
References:http//www)campaignindia)in/Article/%"%'EB,lava-looks-to-dial-into-premium-
smartphones)asp4
http//www)e4change(media)com/ews/0obilit3#!&India-
#!&martphones,*oda3,86er#!&A#!&Nig#!&inancial#!&8pportunit3#!&or
#!&Companies#!&and#!&Partners)pdf
Karbonn
Retail Strategy:
*he compan39s aim is to provide a unique user e4perience to the consumers
and through its association with *elecom partners) Harbonn has been
http://www.campaignindia.in/Article/373168,lava-looks-to-dial-into-premium-smartphones.aspxhttp://www.campaignindia.in/Article/373168,lava-looks-to-dial-into-premium-smartphones.aspxhttp://www.exchange4media.com/57828_mobile-companies-ride-on-e-commerce-boom-to-boost-sales.htmlhttp://www.exchange4media.com/57828_mobile-companies-ride-on-e-commerce-boom-to-boost-sales.htmlhttp://telecomtalk.info/lava-to-launch-sub-brand/129870/http://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://www.campaignindia.in/Article/373168,lava-looks-to-dial-into-premium-smartphones.aspxhttp://www.campaignindia.in/Article/373168,lava-looks-to-dial-into-premium-smartphones.aspxhttp://www.exchange4media.com/57828_mobile-companies-ride-on-e-commerce-boom-to-boost-sales.htmlhttp://www.exchange4media.com/57828_mobile-companies-ride-on-e-commerce-boom-to-boost-sales.htmlhttp://telecomtalk.info/lava-to-launch-sub-brand/129870/http://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdf
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associated with :odafone and Airtel for their Internet packages) Nrand
Harbonn en2o3s the benets directl3 from the incredible distribution strength
of its two parent companies) As part of its strateg3 to massif3 technolog3, it
has established a strong presence through retailers of various si;es to reach
out to the deepest pockets of the countr3)
In addition to inventor3 management in this channel, Harbonn also focuses on
various programs and promotional o6ers to energi;e the channel, including
the use of new media like 5J screens for branding, etc)
7etailer training is an important part of ensuring completeness in the
consumer purchase e4perience)
Availability:
Harbonn has over B
http://www.afaqs.com/news/story/41716_Flipkart-Karbonn-Smart-Callshttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://en.wikipedia.org/wiki/Karbonn_Mobileshttp://www.afaqs.com/news/story/41716_Flipkart-Karbonn-Smart-Callshttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://www.lavamobiles.com/Material/LavaNews/Mobility%20India-%20Smartphones,Today,Offer%20A%20Big%20Financial%20Opportunity%20For%20Companies%20and%20Partners.pdfhttp://en.wikipedia.org/wiki/Karbonn_Mobiles
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million units of cumulative iPhone shipments for the rst time ever in a scal
3ear) A recent post b3 Counterpoint 7esearch notes that this accounted for
nearl3 half of high prot, premium segment and stole some of amsung9s
share) Mitting the ' million mark appears to have been the onl3 green ?ag
which paved the wa3 for Apple9s big push into India) Mowever, one downside
is that though the compan3 which made its debut in India in !&'' has so farfailed to make the kind of impact amsung boasts about) Jven the latter is
facing tough times now owing to erce competition from home grown pla3ers
and Chinese brands) *hus as quick response to the evolving mobile device
scene Apple will be going local in the actual sense) *he task of opening
the
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References:http//www)mobiletor)com/'!%!'%/apples-move-set-
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Perceptual mapping on the basis
of ease of use and e4citement
generated
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Harbonn
5ava0icroma4
ource
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Perceptual mapping on the basisof value o6ered and speciali;ation
provided
or!s "ite#IDC Announces India As The Fastest Growing Smartphone Market In Asia/Pacifc In
Q !"#$) +!&'(, >ovember !E1) 7etrieved from www)idc)com)
Poor value for
.ood value for
Harbonn
5ava
0icroma4
ource
http://www.perceptualmaps.com/
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http//www)perceptualmaps)com/e4ample-maps/
irections for future of Indian
mobile retail sector$uture scope of Mobile in#ustry:
India=s handset market, one of the largest in the world, continues to grow strongl3
ever3 3ear) Rider availabilit3 of more a6ordable handsets, including smartphones,
and signicantl3 lower call rates has catal3sed growth in the market, most notabl3
in rural areas) Competition within the crowded market is intense with more than
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*alking about the NC. matri4, the companies like amsung, 0icroma4, etc) have
huge opportunities of business growth in the mobile sector) *he3 can be called as
*A7 where the companies can invest on generating protabilit3 and improved
sales) Identication of right customer needs, changing market trends and utili;ation
of technological advances will help them achieve sustainable competitive
advantage over others and achieve leadership position in the local as well as global
market)
Mar!et "*ange +ren#s
'1 A ric* User experience- imple 3et rich product e4perience is a ke3
di6erentiator for an3 competitive brand) *he products should be such that theconsumers can fall in love with it) *oda3, haring of e4periences is more
important for customer engagement) *his helps in generating strong
customer satisfaction and ultimatel3 build brand lo3alt3)!1 (usiness Mo#els- 0ega and regional operators consolidating 4ed mobile
convergence, internet-based business models)%1 +ec*nology- various advancements in the *echnolog3 like Internet
convergence, non-cellular wireless, 7I, etc) are acting as an enabler for
faster growth and developments in the mobile sector)(1 )eograp*ical an# consumer #iversity- .eographical di6erences in
consumer behavior as well as business landscape are biggest challenges for
an3 retail market) *he internet diversit3 is another such market trend)
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'1 Neing global through local is the ke3 to adapt to the changing market trends)!1 Nuilding both, strong product as well as service o6erings for the customers)%1 Provide better and superior customer service(1 ocus on Accessibilit3 and A6ordabilit3 for 0anaging the product portfolio and
end to end target of ever3 consumer spectrum)
Roa# A*ea#:
Online as a sales c*annel
Indian handset makers are e4pected to increase selling their new
smartphones through online channels, hoping to mimic the robust sales that
Liaomi and 0otorola have reported in India b3 tapping the cost advantage
and direct consumer connect that the medium o6ers)
elling online not onl3 helps handset companies keep greater control on
channel, distribution and suppl3 chain, while keeping marketing and pricing
policies separate, it also helps to cover the main brand in terms of an3
e4posure to unseen risks) Sou can easil3 kill the categor3 without impacting
the brand) 8nline sales in the total volume of smartphones sales in India is
set to grow to !!#-!earl3 half of the smartphones shipped in
India in !&'% cost less than 7s "!&&,W said Hiran2eet Haur, senior market
anal3st for mobile phones at IC Asia/Pacic)
http://economictimes.indiatimes.com/topic/Xiaomihttp://economictimes.indiatimes.com/topic/Motorolahttp://economictimes.indiatimes.com/topic/Xiaomihttp://economictimes.indiatimes.com/topic/Motorola
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IC research showed nearl3 half the mobile handsets sold across the world
have retail prices of less than 7s E&&& without sales ta4) *wo thirds of those
have prices of less than 7s %&&&)
As a result, smart phone vendors will position for this ne4t wave of cost
pressure) amsung, for e4ample, is increasingl3 moving production to:ietnam in the face of rising labor costs in China)
"ontent as a #i%erentiating factor
Mandset makers are identif3ing content as content as a ke3 di6erentiatorT
market leader amsung e4pects around two million users for its content
services in India over the ne4t
3ear)
Partnership between global phone manufacturers and technolog3 providers
can be a phenonmenon in the future) 8ne such is Appple-IN0 partnership in
which IN0 is to develop pack of focused mobile business apps catering to
sectors ranging from nancial to law enforcement specicall3 for Apple
devices)
*op carriers Nharti Airtel and :odafone India are developing apps and pushing
carrier billing to connect directl3 with a surging smartphone user base in a
bid to sta3 relevant, As part of its =martphone >etwork= campaign, Nharti
Airtel, India=s >o) ' operator, has hired close to %& I* professionals for an
innovation team under its new I* head, Marmeen 0ehta, with a focus on
creating original content for use on smartphones) >o) ! :odafone India has
asked various healthcare and education sector entities to 2oin hands with thecompan3 to develop applications to create successful ehealth and e-
education products)
Mobile for payment option
0obile is going to pla3 a much more important role in the coming 3ears)
Penetration of smartphones U tablet devices is paving a new road for
shopping and pa3ment methods) People have now started using their credit
cards, digital wallets, etc) for purchasing online) *hese pa3ment methods are
denitel3 going to collect huge sum of pa3ments) *he brick and mortar
retailers need to identif3 how the3 can s3nchroni;e purchases with the mobiledevices consumers use while the3 are in the store +sending a notication
about the product the3 purchased, discount o6ers, and etc) over a secured
network1) *hese methods will open up new possibilities for the retailers at the
point of sale) *he3 will need to identif3 such opportunities and integrate new
trends into their e4isting landscape, which will help them reap the prots)
• -n#ia as a next mobile manufacturing *ub
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N3 comparison, India, though the world=s second-largest mobile services
market, has failed to spawn a manufacturing hub for handsets) According to
the Indian Cellular Association +ICA1, a bod3 representing the mobile phone
rms, E" per cent of the !(< million devices sold in India in !&'% +E% per
cent, or 7s %E,&&& crore, in value terms1 were imported ) Rith Inte4 beingonl3 compan3 manufacturing mobiles in India, Prime 0inister ambitious 0ake
In India call can Jncourage more Indian manufacturers like 5ava and
0icroma4 to manufacture phone components in India rather than importing
individual components from China and assembling in India) *he
manufacturing can give impetus to the infrastructure development and
contribute to .P in a big wa3 creating number of emplo3ment opportunities)
Assuming the entire handset demand in the countr3 was to be met through
domestic productionT more than E',&&& manufacturing and related 2obs could
have been created in India)
More foreign players entering -n#ia
0ore and 0ore global foreign mobile manufacturers to start selling in India)
Pla3ers like Muawei, G*J and 8PP8 alread3 making e6orts to capture Indian
0arket along with alread3 known Chinese phones manufactures like Liaomi
and 8ne Plus)
-n#ian mobile manufactures to forge exclusive partners*ips ,it*
tec*nology provi#ers
Indian mobile manufactures can collaborate with foreign technolog3 provide
to provide their technologies to indian consumers beside Android and Apple
ios) *he 0icroma4-C3anogen partnership will be a one of its kind hardware-
software partnership pertaining an Indian handset maker) *he rst device
coming out of this union will be the rst to be launched with C3anogen9s new
*hemes app which allows deep levels of user interface customisation)
References:http//www)cnbc)com/id/'&'((!'(