BackHow Micromax made its mark in mobiles
Micromax has 22% share of the Indian mobile handset market
Premium(A large part of Micromax’s growth is attributable to its significant share of the smartphone market, including so-called phablets (voice and data devices that have a screen size of 5 inch and above). It has been able to deliver smartphones with specifications akin to those offered by global handset makers like Samsung, but at half the price. )
THE ACHIEVEMENT:
Traditionally, the dominant mobile phone companies in India have been foreign giants—be it Nokia Oyj, Samsung Electronics Co., BlackBerry Ltd or Sony Corp. But through sustained marketing efforts and the introduction of products at lower price points but with the same specifications and contemporary design that their global counterparts offer, Indian handset makers have been steadily gaining market share.
The forerunner among them is Micromax Informatics Ltd, which according to latest International Data Corp. (IDC) data had a 22% share of the Indian mobile handset market, second only to Samsung, which had a 26% share, and much ahead of other foreign competitors like Nokia, Sony and BlackBerry.
THE STRATEGY:
A large part of Micromax’s growth is attributable to its significant share of the smartphone market, including so-called phablets (voice and data devices that have a screen size of 5 inch and above). It has been able to deliver smartphones with specifications akin to those offered by global handset makers like Samsung, but at half the price.
As a result, the company has been able to attract a number of first-time smartphone buyers, who were upgrading from a regular features phone and did not want to spend a bomb while doing so. India’s growth story is believed to be outside the metropolitan cities, in semi-urban and rural areas, and a large chunk of upwardly mobile population in such areas will give a Micromax product due consideration while looking to upgrade to a smartphone.
Sustained advertising campaigns through television, print and outdoor have also helped the company’s cause, especially since some of its television commercials feature an international look-and-feel, giving an impression to the buyer that he is buying a world-class product. The problem that Indian IT hardware and electronics brands faced earlier was that they were thought to be cheap. Micromax appears to have somewhat dispelled this notion with its products and that has happened mostly by word-of-mouth marketing from existing users.
THE PAYOFF:
Just six years after entering the smartphone market, Micromax is already India’s number two brand in this space, and the gap with market leader Samsung is narrowing. In fact, the company has gone on record to state that by Diwali in November it aims to become India’s largest mobile phone company by market share.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
