Micromax is now definitely one of the biggest brands in the Indian mobile market. Through the course of their five-year existence in the Indian market, the firm has been producing budget phones that are suited for the common man, while providing high-end features at the same time.
Recently, the firm reported that they have intentions of stepping out into the European market, as they have already stepped out of India and into Bangladesh and Sri Lanka. Will venturing out into the European market bring Micromax success? Let’s take a look.
Micromax’s Strength On Home Ground
In India, Micromax is now giving firms like Samsung a run for their money. According to a report released by the International Data Corporation, Samsung’s market share dropped to 26 percent in the second quarter of 2013. At the same time, Micromax’s share has seen a steady rise, with their market share being 22 percent for the second quarter.
Rahul Sharma, the co-founder of Micromax, indicated that the firm’s intention is to have a third of the market share in the next two years. He reiterated that they are currently the second leading manufacturer of mobile phones in the country and their goal is to set foot outside the Indian subcontinent.
Apart from launching a number of remarkable budget smartphones, the firm has launched a stunning tablet called the Micromax Canvas Tab P650. Because it’s packed with several high-end features, the Micromax Canvas Tab P650 price in India is INR 14,499. The price is moderate, considering such a host of high-end features.
Sharma explains that they were able to make a turnover of more INR 3,100 crore in the previous fiscal, and that their current plans are focused on growing 2.5 times by the close of the financial year. The firm has set a 1 billion-dollar target for themselves and is working towards it.
Micromax Beyond India
Micromax has already established itself in the Indian market, besides also having set foot in the mobile markets of countries such as Nepal, Sri Lanka, and Bangladesh. Sharma also added that Micromax is among the three leading phone brands in Sri Lanka and Bangladesh. The firm has already its intention of entering foreign markets clear.
Sharma explains that they intend on becoming a global mobile manufacturing company, rather than just being limited to India.
The firm plans on entering the Russian mobile market by 2013, while setting foot in Romania in the first quarter of 2014. Sharma also notes that they are looking at the African mobile market as potential business, although they’re yet to take a call on that for now. Micromax has also set its eyes on the European mobile market and plans are in full swing to ensure that they make their way into the market quickly.
Hugh Jackman – Micromax’s New Brand Ambassador
Ever wondered why Micromax would pick a Hollywood actor as their brand ambassador, when most Indian companies typically pick a famous countryman? Shubhodip Pal, who serves as the Chief Marketing Officer at Micromax, indicated during a press release, that the firm is very happy to have Jackman as the firm’s ambassador.
He said that the company intends to set foot in several international markets and the company’s association with Jackman, a renowned figure in the entertainment industry, would certainly make it easier for them to penetrate these markets.
What The European Mobile Market Is Currently Like
Although the European mobile market is in a bit of a mess at the moment, the future is certainly bright. In the next six years, it is expected that the number of wireless devices would increase to approximately six billion. The value of the European market would then be lurking around the 234 billion pound mark.
Anne Bouverot, who holds the post of Director General at the GSMA, notes that the mobile industry is able to bring about a recovery in Europe. However, it will need a policy that promotes investing in mobile broadband connectivity, innovation, and increasing consumer confidence in mobile services.
Micromax’s Game Plan
Micromax has launched certain key devices that met the needs of rural Indians, who didn’t even have access to electricity for charging a mobile phone. The Micromax X1i came with a standby time of 30 days, which was ideal for those who didn’t have access to electricity.
In similar ways and at many times, Micromax has proven itself to be an innovative brand that launches affordable mobile phones that cater to the needs of the common man. If Micromax thinks intently about their Europe strategy and are able to bring about innovations in the European market, they are definitely on the road to success.
But Will Micromax Enter European Markets Without Android?
It is important to note that the European market doesn’t favor Google and its products. This is because English is not the native language of Europeans. All this automatically translates as no android. Micromax has, therefore, tied up with a Google-like company that would provide software and services for the Micromax phones releasing in Europe. This would cause Micromax to provide European users with software they are accustomed to, while the devices would carry the Micromax brand name.
Unlike other firms who have jumped in to foreign markets without much consideration, Micromax has done a great deal of research before doing the same. From hiring Hugh Jackman as the brand ambassador to launching mid-range devices such as the Canvas series, Micromax is headed towards achieving a great deal of success in the European market. Considering their track record in other countries, success seems possible.