Free Wi-Fi can ride the technology wave Spice provides complete mobility experience

Dr. B. K. Modi 
Global Chairman 
Spice Group

How do you see the competition in the Indian market?

The mobile handset industry in India is increasing rapidly with expected approximate growth of 13.5% in 2013. Sales of mobile phones in India should cross 250 million units in 2013. Though feature phones still dominate the market in terms of volumes, yet with the increasing capability of the mobile devices to complement today's fast-paced life, a clear shift towards smartphones is seen. 

Also, in a market like India with no entry barriers for handsets, the competition in the feature phone segment is mainly around cost, while in the smartphone segment it is more about the value proposition and the capability that comes with it in terms of apps and speed. Therefore, the market is experiencing a rapid technology shift wherein proprietary platforms are no longer in dominance. 

How are you placing your handsets amidst the competition both established and domestic handset importers?  Where do you see the potential in the market?

Taking into account the varied demographics and the socio-economic categories of the country, we are placing our products in all the price segments catering to the needs of the consumer. From Rs.900 to Rs.13,000, we have products at each price point within this price segment. The products range from basic feature phones to Touch phones to Smartphones. Innovation is our forte and you would recall that we have always been the leaders in introducing cutting-edge products-be it the first dual-SIM phone or the 3D phone. We will continue to maintain our dominance in the feature phone category and, at the same time, we are putting equal focus on the smartphones category.

S Mobility has the vision to enable personal productivity through the mobile Internet. Our integrated business model comprising Devices, Retail - both offline and online - and VAS offerings is unique in every sense. Our devices can be bought in convenient surroundings and come loaded with apps for a complete mobility experience. However, Wi-Fi is still far from ubiquitous in India. I would urge the Government to consider providing free Wi-Fi for youth in schools and colleges who can make the most of it and lead the technology usage and also help India continue to ride the technology wave. 

Going forward, our focus will intensify on 2G Wi-Fi and 3G smartphones with Android software. We will also be open to explore strategic tie-ups for continuous enhancements. 

Do tell us about your channel and retail strategies?

We have more than 50,000 retail points, including the 850-plus Spice Hot Spot retail network in India and 1,250 stores in retail and distribution in Si2i countries. We plan to increase this number to 5,000 stores across India, Singapore, Indonesia, Malaysia, Thailand and parts of Africa. We also sell our products through online platform such as saholic.com.  

How many handsets do you have at present and what is your current market share?

We have a portfolio of more than 16 new products currently and nearly 40 products overall in the market.

We sold over 6 million handsets in the year 2011 and we plan to sell 10 million handsets in the current fiscal, including 7.5 million 2G handsets from domestic and international sales.

How do you position yourself in the market today?

Spice has a unique proposition for the customers since we are an integrated mobility company. Our devices make us the market leaders in the feature phones category amongst indigenous brands. At the same time, our foothold in the smartphones segment is strengthening. In fact, our strategy is to put intense focus on smartphones, 2G Wi-Fi and 3G phones while continuing to further consolidate our position in the feature phone category. 

In addition to this, our new age-format stores that encourage potential customers to experience the phone and also fully enjoy the capability of the phone through our apps store is a great offering. Therefore, we provide a complete package to anyone buying a device. 

We are a serious player in this market. Our Group companies in the ASEAN markets give us an added advantage of drawing from the experience of operating in advanced markets. Our R&D facilities in Indonesia and India have been a crucial factor in bringing out innovative products.

What kind of market strategies you are planning post-Huawei tie-up? 

We are open to strategic tie-ups that will complement our vision of enabling the world through the mobile Internet.

With a lot many players entering in the handset space, what has been your take on the recent cacophony that is being witnessed?

Since ours is an open economy, it is imperative to have numerous market players. But we believe customers are focussed these days and know what they want. Therefore, only those players, who are innovative, trustworthy and responsive, will be able to sustain.