Wider distribution network, high-end features and cost-effective price point are making handsets manufactured by domestic firms popular among Indian consumers
 While it is a well-known fact that the mobile handset manufacturing market in the country is booming, an important factor to be attributed to this growth is the step-up in handsets manufacturing activities by domestic manufacturers such as Lava, Zen, Micromax etc. Cell phones manufactured by these firms are low-cost yet feature-rich - including features such as Bluetooth, radio and mega pixel camera, among others, - which were earlier found only in high-end handsets manufactured by giants such as Nokia, Motorola, Samsung etc.In fact, mobile phones manufactured by domestic firms are posing stiff competition to established players in the segment, which has been highlighted in a recent survey conducted by Machinist360. According to the survey, a whopping 100% of the respondents feel that handsets rolled out by domestic firms are giving major giants in the segment a run for their money.
Innovative thinking by domestic manufacturers
Analysts opine that innovative thinking of domestic handset manufacturers to tap the market potential is one of the vital reasons for swift growth of these firms. A glaring example would be handsets launched by LAVA International Ltd., one of the emerging mobile brands in the country. The company has launched phones with Alpha keypad, unlike QWERTY keypads found in BlackBerry handsets. A market study conducted by Lava revealed that several consumers find it uncomfortable to use handsets with QWERTY keypads and therefore it came up with the idea of introducing handsets with Alpha keypads.
According to Deepesh Gupta, managing director of Zen Mobile, “The adoption level of Indian handsets is also increasing because of the wider distribution and after-sales network created by domestic handset manufacturers like us.” A survey conducted by Voice&Data100 revealed that the share of domestic mobile phone manufacturers jumped from 3-4% in 2008-09 to 14% in the previous financial year. During the same period, Nokia’s marketshare came down to 52.2% (2009-10) from 64% (2008-09).
“Domestic handset makers have focussed on tier II and III cities, where mobile penetration is still low and fortunately their products have been able to meet consumer satisfaction. Moreover, since products manufactured by domestic players come at a cost-effective price point, the same is bolstering demand for domestic handsets,” comments S N Rai, director and co-founder of LAVA International Ltd., while speaking to a Machinist360 correspondent.
With Indian firms looking forward to indigenise their products, the demand for handset manufactured by them is expected to rise in the coming months.
Arup Choudhury |
