Market is attractive at Rs 8,000-10,000 price point, as well as at Rs 40,000 range: Vivo
Chinese mobile brands Xiaomi, Vivo, Oppo have been steadily gaining their cumulative market share in the Indian market. Together, the Chinese firms have pushed Indian brands into oblivion.
Chinese mobile brands Xiaomi, Vivo, Oppo have been steadily gaining their cumulative market share in the Indian market. Together, the Chinese firms have pushed Indian brands into oblivion. In an interview with Mansi Taneja, Vivo’s director -- brand strategy Nipun Marya says the company is focused on innovation and plans to expand its manufacturing base in India.
The mobile handset market is seeing aggressive competition. What will be your USP in such a crowded market?
There is competition, but the market opportunity is also very big. The market is so lucrative that we believe we have a great opportunity to create a brand. But, we are not looking at short-term gains and thinking about how we can capture a good market share. For us, it is important to put the right inputs on the ground, right output will follow. We have seen that in China and in other markets.
We have been focused on innovations. For example, we were the first one to make a product with in-display fingerprint sensor technology, retractable front camera, etc. Being in the technology business, innovation is our bedrock and innovation is what we have to strive for if we have to do well in this category. We see a great repurchase of our product. If people have used Vivo they come back to buy a Vivo again. We are understanding the Indian market and hope we will do even better in the future.
What are your plans on manufacturing in India?
We have a manufacturing plant in Greater Noida. We have invested around Rs 300 crore over the last 2-3 years. The products we are selling in India are being made out of the Greater Noida factory only. Some components come from China, the rest are all manufactured here.
Any plans for exporting mobile phones from India? And what plans of expansion for manufacturing?
We are seeing good domestic demand currently. As and when we see a need, we will also export from here. The existing plant is fully utilised. We are planning to expand in the near future. When and where that is still under discussion. We are planning to expand in near future and exploring both the options -- expanding current plant or setting up a new one.
You have products across whole price range, but what is the focus segment?
Our entry level phone is at around Rs 8000 and we go up to Rs 45000. From a demographic point of view, around 70 to 80% of the market is in the 18-34-year-old. We are focusing on millennials as it is the bulk of the market. On the price band side, we want to serve the Indian consumers in the best possible way. We believe the market is attractive at Rs 8,000-10,000 price point, as well as at the Rs 40,000 range. Different segments of consumers have different things which excite them and our purpose is to serve consumers accordingly.
As per GSK, around 40% of the market is in the top 12-14 cities and the remaining market is in Tier-II, III cities. Since we are an all-price-range player, our distribution is spread across, and accordingly, we decide which products require what kind of distribution and outlets reach.
What is your strategy for sales -- offline or online?
Whether it is online or offline, these are channels to serve the consumer. There are some consumers who care more about the experience -- touch and feel --of the product. For such consumers, we will have an adequate offline presence. Then, there is another set of people who look for convenience. For them, online is the way to go and we will be present there too. We have been selling products on Flipkart and Amazon, we also have our own e-store. We will focus on the right product and experience for the consumer.
Where does the India market stand for your company. Is it the fastest growing for Vivo?
India is the second largest market globally after China for smartphones and is important and large enough. We will have to do well here as well.
Watch this Zee Business video
Statistics show you have among the top five brands in India. When do you target to be on number one?
We believe if we keep doing well in the input, output will follow. It is a long journey.
Source: DNA Money