Domestic mobile phone to borrow electricity business channel "air raids" India market, Cheap is the core!

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[Abstract] The Indian market is back in the public eye, the domestic brand of successive entry, the fancy is the Indian from the functional machine to the large market transition. But for domestic manufacturers, to open the door of the Indian market, in the channel, brand, electric business platform is still facing a lot of problems. Would it be a stepping stone to a cheap price?

Starting this year, the Indian market has returned to the public eye.

In mid-July, the Millet mobile phone in India's largest electric platform Flipkart open sales, the main product Millet 3 in 2.4 seconds sold 20,000 parts.

At the end of July, Asus Zenphone handsets were sold in India, selling 40,000 units in only four days, a record 20,000 a day.

The heat of emerging-end brands in the Indian market has also allowed traditional manufacturers such as ZTE and cool to see opportunities.

Cao, vice president of the group, said it is planning to push its big God, Grand panorama and other mobile phones to the Indian market, using a number of channels from traditional agents and electric business platforms, and spend 2 years nurturing consumer loyalty and waiting for the market to mature.

At the same time, ZTE Terminal Strategic Development Department general manager Lu Qianho said ZTE two years ago in India shipments accounted for the top five, and India partners began to build a platform for electricity, "ZTE in the depth of cooperation with Indian dealers to accelerate the construction of ZTE Brand stores." ZTE also has a large coverage of after-sales service outlets in India and provides back-up services to Indian consumers. ”

In fact, the successive entry of domestic brands, the fancy is the Indian from the functional machine to the transition of the huge market. India's smartphone shipments rose 84% to 18.42 million in the second quarter, according to IDC, a market research firm. With India's functional handsets still occupying 71% per cent of the market, smartphone development has great potential.

But for domestic manufacturers, to open the door of the Indian market, in the channel, brand, electric business platform is still facing a lot of problems.

The "Heroes" of the Indian market

Domestic brands in this burgeoning market, but also face the impact from "Made in India." such as India's local mobile phone brand Micromax, Karbonn, relying on the local channel and perfect after-sales service, is rapidly rising.

According to IDC in the second quarter of 2014 data, the local market is still the largest shipments of Samsung, accounted for 17% of the share, but Micomax and Karbonn have reached 14% and 9% of the share, the momentum of rapid growth. But in the view of most domestic handset manufacturers, these independent brands are not enough to pose a threat-because Micomax, Karbonn and other Indian brands do not grasp the core technology, they are designed by the Chinese mobile phone design companies and production, Micomax and so only responsible for marketing and channels.

"Domestic brands have set research and development, design as one of the strength, in the face of consumer demand, can quickly respond and support, research and development cycle and workmanship are guaranteed, this is a huge advantage relative to the Indian brand." Cao to the IT Times reporter that most of India's own brands are not yet equipped with research and development capabilities.

From the electrical business "curve into print"

It should not be overlooked that, although domestic brands in the Indian market for many years, but has been slow to establish a complete sales network and channels.

"Compared to the corporate market, India's mobile phone sales of the public market is the big head, accounted for more than 70%, basically by Calcutta, Mumbai, New Delhi, Bangalore and other major cities in the operation of agents control, domestic brands on the local channel business dependence is very strong, in all cities and states have no sink channels, so the real brand is very difficult. "Liuliang, who is responsible for the operation of a brand mobile phone channel in India, explains to reporters that the current big manufacturers in India, such as cool faction and ZTE, are providing custom services to local channels and brands, and if Chinese manufacturers want to push their own brands, they will have a test of the past cooperation model."

Therefore, the domestic handset manufacturer chooses "The curve enters the printing". Some domestic emerging brands out of traditional agents, directly through the electric business channel into the Indian market, achieved good record-through the electric business platform can save 16~20% agent costs, but also eliminates the traditional channels of construction costs, to be able to invest more in marketing costs. Using this light platform model, domestic manufacturers can seize India's booming demand for smart machines in the new generation and middle class.

This September, Millet began to try to replicate the successful model to the Indian market: through Hat Eschde, the Indian electric business platform Flipkart Cooperation, the establishment of a full range of logistics supply chain and fund platform services, planned to hit 200 million U.S. dollars in 2014 sales.

But India's underdeveloped logistics have become the only place to worry. As early as a year ago, Liuliang has also tried to copy the domestic millet, the charm family and other Internet models to India, in Mumbai, New Delhi and other major cities and local electric business platform, and put a lot of TV shopping ads, but the actual effect is not ideal-a 7,000-rupee smartphone, freight will be more than 1500 rupees, Many Indian consumers who have submitted orders to see such expensive freight can only give up.

"India's own postal logistics delivery range is limited, and the transport process is long, often lost parts." But with DHL and other international logistics, the cost is very high. "Liuliang said.

Homemade cottage machine had been savagely grown

In the process of handling emails from African customers, Liang one or two of astonishing words. As the head of India's market for a domestic mobile phone brand, he has been working for many years in the country, and its domestically owned brand has over 17% of India's market share. But just a year ago, he withdrew from the emerging market in the eyes of others, turning the target to West Africa and the Middle East.

Although millet, Asus, Oppo and so on in the Indian market, but did not in Shenzhen manufacturers peer caused too much waves. As early as many years ago, China's mobile phone brand in India has begun to emerge, the low-cost mobile phones on a massive market. By 2012, the domestic brand ushered in a brutal peak, when only Shenzhen, there are more than 120 mobile phone manufacturers exported to India market, the price war between each other, when a 2.4-inch Chinese straight machine as long as 550 rupees (about 55 yuan) around, Such vicious competition has caused the whole market to plunge rapidly into a trough.

"At that time, every month from Hong Kong shipped a few cargo ship mobile phones, through the Calcutta, Mumbai, a large national agent quick shot, a mobile phone to make 10 yuan, and sell cabbage almost." "Liang said," Many domestic mobile phones in India are the "fast" of the gray market-style routes, in the brand, marketing, after the sale of almost no investment, through the relationship from the Indian Customs low tariffs or even zero tariff entry, and then rely on local agents bulk shipments. And this low-cost low-end mobile phone, only one or two months of service life, due to the lack of after-sales services, not only to local channel operators to bring losses, but also let the Chinese mobile phone brand in India's image plummeted.

With the entry of Samsung and other foreign brand smart machines, the gray market began to shrink rapidly, many domestic mobile phone brands chose to exit.

"When consumers are willing to take more than 8,000 rupees, almost one months wages to buy Samsung's brand mobile phones, the domestic brand began to no one, even if the 4-inch, 5-inch big screen quad-core Smart machine also sell not to go out, the Indian agents are not willing to do no after the sale of the Chinese brand, shipments plummeted by 70%. Liang told reporters that after the extensive grey market shrank, most of them chose to go to the more primitive markets of the Middle East and West Africa.

Interview Tidbits

What cell phones do Indians use?

Samsung, the international handset brand with the largest market in India, has a wide range of users in India, and Satish, a computer engineer who has just come to work in China for less than 2 months, is one of the "loyal" fans. So far, his only two handsets, one is Samsung Wave 1, and the other is using the current Samsung Galaxy Grand 2 (DUOS version).

He is very fond of Samsung mobile phones, not only more models, price stalls also have a wide range of options. His first smartphone was Wave 1, which took four years, not only to be used easily, but also to have no problems, which prompted him to switch to new handsets when the first brand to consider is Samsung.

But now his ideas have changed a little, because he found a brand that surprised him--millet. Although he was not very familiar with the mobile phone in India, after the Chinese found that a lot of people are using, "The millet design is very good, I will probably buy one next year." ”

As for why to wait until next year to buy, Satish helpless to reporters that they save 200 yuan per month, so a year after 2500 yuan, no matter what he has bought, or will buy the mobile phone, the price of the mobile phone is his one-year storage plan amount. and millet mobile phone not only design very much like, Price also very accord with his heart anticipation.

In a Chinese university, India and the United States international MBA students Amby but do not care about the "millet design", for no income he, no matter what brand, Cheap is kingly. Amby now uses the price of medium Sony mobile phone, spend 2000 yuan to buy a mobile phone is acceptable, but in advance he will basically in gsmarena.com (Overseas authoritative mobile website) on a number of brand mobile phone "price, popularity, operating system" parameter comparison, A cheaper price is preferred for the same configuration.

However, Amby said that although they do not use the Chinese brand of mobile phones, but oppo, Huawei, Millet in their own circle of friends is very popular, but the only reason to be popular is--cheap.

The Indians of the business, Mike, have a lower demand for their phones, only good performance and normal calls. It looks like the old man's demand for a cell phone doesn't seem to match Mike's age, as he is now less than 30 years old. But he said his mobile phone does not have specific requirements mainly related to his work, because the business is too busy, even with reporters in just a few 10 minutes in a short period of three or four business phone calls, Mike said, he did not care about the phone's many details, easy to use. Mike didn't even know he was using the phone's brand, only to know that it cost him about 300 yuan.