Rajesh Agarwal
Managing Director, Micromax
From IT distribution to telecom, how has been your journey?
Micromax started as an IT software company in the year 2000 and, by 2008, it entered mobile handset business and by 2010 became the largest Indian domestic mobile handset company. Micromax entered the bandwagon of handset market in India during a time when global players such as Nokia, Samsung, etc. have already dominated the market arena. To create a mind share that will enable to fortify consumer trust, we adopted the utilitarian philosophy to cater to all fragments of the society with equal zeal and enthusiasm and hve come up with products which they can relate to in their everyday lives. Our innovative pricing also helped us achieve a reasonable degree of success. Through its emphasis on adapting to the changing market dynamics, introducing feature-rich phones and smartphones that are innovative and unique, Micromax today has become a brand to reckon with.
In the past four years during your journey, many brands came and vanished. What is keeping Micromax climb the ladder of success?
The mobile handset industry has witnessed a huge growth in the past few years. There has been some of the major developments in the history of technology. Innovations such as 3G, 4G services, Android dominance paved the way for a large number of brands to enter the already cluttered market and gain market share. However, in the long run, companies that hold onto their values and kept pace with the technological revolutions were able to create their foothold.
We have succeeded in constantly delivering innovative products. Today, people of all the segments look up to us for a new launch as our consumers believe in the fact that we think and act differently. At Micromax, we understand the Indian psyche and therefore adopt a customer- oriented approach. As a company, we have a deep understanding of customers and hence we aim to bring products that fit into their daily lives making their life simpler. We, at Micromax, focus on maximizing efficiency and producing the best solutions for our clients.
How many models you have? What is the turnaround rate (life) of any handset in today's time?
With Micromax evolving into a management-driven company, we have separate divisions for feature phone as well as smartphones. We are looking forward to bringing newer innovations. Recently, we have launched a special category of phones known as Superfones and as of now we have already seven handsets in the Superfones portfolio, namely, A85, A75, A73 Buzz, A78 Gossip, A50 Ninja, A52 AISHA and the recently launched A45 Punk. We will be launching two handsets every month in an effort to strengthen our smartphone portfolio. In the feature phone segment also, we have an array of phones and in this category we will be trying to create our presence in the sub Rs.1,500 price mark.
How are you placing your handsets amidst the competition both established and domestic handset importers?
We are living in a 2.0 world today, where consumer's needs are changing and so is their demand for technology. Customers today prefer relevant innovation over a complex and generic one. So, we focus non creating categories of products for various segments of people, be it youth or women, etc. rather than concentrating on a particular genre. We believe in the expression of individuality. Technological innovations at a surprising price have further helped us gain an edge over the competitors. We work in close association with the customers and understand the basic needs and demand of consumers from a mobility device. All our innovations are powered by an insight. At Micromax, we strive to meet the aspirational needs of the potential customers. Indian mobile handset industry caters to a country with huge population and diverse culture. Hence, the need of every individual is different. With an in-depth understanding of rapidly-changing consumer preferences coupled with the use of advanced technologies and correct pricing, Micromax has been able to differentiate itself from the competitors through innovation and design.
Please tell us about your channel strategies and service network.
At Micromax, now we have two separate divisions for smartphones and feature phones. We have a very well-knit, organized and evenly distributed retail channels across India. We sell around 1.3 million mobiles handsets every month, with a presence in more than 500 districts through 125,000 retail outlets in India. We try to maximize our reach to the consumers who demand for affordable mobility devices.
Our after-sales service centres (ASCs) provide high-quality customer service. This has been a core area of focus for us and we have built a network of more than 557 strategically located ASCs carefully selected based on our stringent standards. We also have one ASC in Nepal and Sri Lanka and Bangladesh. This has supported us to closely understand the people's problem and address it in a more effective manner.
