Samsung is the new Nokia. Yes, its true!
According to the latest report by Counterpoint, Micromax has taken the lead in Indian mobile industry beating Samsung for the first time. In Q1, Micromax had 16.6 % market share of Indian mobile industry followed by Samsung with 14.4%.
The Micromax gained in the sales of featured phones which Samsung has lagged behind. In feature phone category, Micromax leads the market with 15.2% followed by Nokia with 14.7% and Karbonn with 11.4%. Samsung with a market share of 8.5% came in the fourth position.
In the smartphone segment, Samsung still holds the market share with 25.3% followed by Micromax with 19.1%.
Karbonn has a market share of 5.9% and Motorola has 4.3%. Nokia came in fifth position with a market share of 4%.
The smartphone sales has been increased by 68% for the first quarter. There is a 2% increase in overall sales of mobile phones in India during the first quarter of 2014.
Micromax started as an IT software company in 2000 later shifted its focus to low-cost feature phone segment in 2010. Headquartered in Gurgaon, Micromax has presence in more than 560 districts in India through 1,25,000 retail outlets. Micromax through its flagship models like Canvas series has been able to capture the attention of Indian consumers and surge the sales through competitive pricing.
Xiaomi leads China
According to the latest report by Canalys, Xiaomi leads the Chinese mobile market surpassing Samsung. The Chinese mobile maker sold 15 million units in Q2, 2014 compared to last year sales of 4.4 million units in Q2, 2013. Samsung at the same time sold 13.2 million units in Q2, 2014 compared to last year sales of 15.5 million units. That means there is a 14% decrease in the sales of Samsung and 240% increase in the sales of Xiaomi. Xiaomi has 14% market share followed by Samsung and Lenovo with 12%.
Xiaomi Inc is a privately owned Chinese electronics company headquartered in Beijing. Founded in 2010, Xiaomi has captured the Chinese market with its aggressive pricing strategy and the custom user interface MIUI. Xiaomi sells through its online stores and does not depend on retail stores to increase their profit margins. They also use their themes, apps, messenger services, cloud storage etc to maximize their revenues.
The strategy is far ahead than the normal strategy followed by the big players like Samsung. They don’t just depend on the mobile sales but ship it along with the accessories, themes and other internet services along with the product which will boost their sales.
The Road ahead for Samsung
It’s high time that Samsung change its strategy for China and India. Especially in India, we have seen many local players also joining the big league. The likes of Karbonn, lava, Gionee are also trying to get their pie from these competitive market.
Lessons learned from Motorola and Xiaomi in India Launch
The recent success of Motorola shows us that there is still space for better players if they introduce quality products at competitive pricing. The strategy adopted by Motorola and Xiaomi in India is exciting and showed us a marketing strategy. Both these phones are only available through the online retailer Flipkart.
Motorola sold more than 1 million Moto phones through Flipkart in less than 6 months. The second innings of Motorola is a fairytale story which might attract more brands to follow the same suit. After the acquisition by Google, Motorola launched in India with Moto X, Moto G and Moto E series. The specifications and prices of these phones are compared to Samsung S5 and Apple iPhones. Moto E is available from Rs. 6,999 and Moto G from 13,999. Moto X being the premium model is priced at Rs. 23,999.
Going on the lines of Motorola, Xiaomi launched its flagship model Mi3 in India through Flipkart. The demand for the phone has even made Flipkart to show us an error page for the first time for most of the customers reminding us of booking tatkal tickets in IRCTC. Xiaomi almost sold more than 20,000 units through its sale on Flipkart. Both the times, Flipkart sites were visited by more than 2 lakh people. The traffic made the site to hang for few minutes. Flipkart came with the campaign “Gone in 5 seconds” for Xiaomi’s second window.
The customer has to register on Flipkart site to get a chance to buy Mi3. Even if you register on the website, there is no guarantee that you will get your Mi3. By doing this, Xiaomi has created an artificial demand for Mi3.
Soon after the launch of Mi3 in India, Motorola reduced the prices of Moto G series by Rs. 2000 and its available on Flipkart for Rs. 11,999 (16 GB Version).
Both Xiaomi and Motorola has taken the online route to sell their latest smartphones. This is inline to the forecast of Indian eCommerce growth of 34% annually. (Source: IMEA)
The Indian retail industry is worth around $500 billion and online eCommerce accounts only 1% of this which shows us that the Indian eCommerce space is largely untapped and it attracts more investments in the coming years.
Both Motorola and Xiaomi earned a better press coverage than their conventional marketing strategies. The demand for these products and error pages on Flipkart has given better coverage for these companies which will help them in reducing the marketing spend. Without any marketing campaigns and just along focusing on Flipkart, these companies are able to sell their products easily.
Who is the ultimate Winner?
It is the customer who is the ultimate winner here. We are getting more choices as well as better prices. Earlier we used to go to retail shops to buy mobile phones. But now the trend is shifting. We go to retail shops to touch and feel the phone and then purchase it over online so that we get the best price. The online store has certain advantage over the physical ones. The companies can offer better prices to their customers through online stores because the companies save on the commissions given to physical stores as well as the marketing.
Hope the next festive season, Diwali, will bring more cheers on the faces of shopping crazy Indian consumers and the discounts flood our emails with products varying from across catalogs.