Business

Micromax, Lava and other domestic companies eye international market

Micromax logo

Smartphones in India is a different story altogether. It is away from the reality the other world is in and is in its own dreamland at the moment. The country is going to be in dreamland for the coming several years according to many researchers. There is still a huge part of India that is yet to be exploited by the smartphone makers. The entire world is sinking when it comes to smartphone sales and India is the only one whose boat is sailing unflinchingly.

The market in India is just huge and there are major companies which are dominating it. The smaller companies and most importantly the domestic companies have found it extremely hard to just exist in this hyperactive and hyper-competitive market. It is extremely hard to sell phones when there are better quality phones at a price range they once used to conquer. That said, domestic companies are fighting for their survival in India.

Micromax, Intex, Karbonn, Lava, and many other companies have been made to push their price range back. The companies half a decade back used to make phones that were sold at sub-INR 10,000 rupees. Then the Chinese invasion happened and the price tag was pushed back and now it has reached a sub INR 7,000. They are selling phones in this market and if they increase their price tag then it will be game over for them.

This is the situation of the smartphone market. The reason for this is demonetization and the overnight change in the 4G sector brought by Reliance Jio. Companies like Micromax, Karbonn and Lava were set on fire because of this as they had no phones in the market which would accommodate a 4G sim card and their price range was such that most of the people would buy their phones in cash. This is how demonetization and Reliance Jio sunk these companies to the low they are currently at.

That said, the better-doing companies amongst these domestic entities, Micromax, Karbonn, and Lava are going to exploit the foreign market. There are countries in the continent of Africa and also countries like Russia with Europe also in the picture which have a huge market for $100-200 smartphones. Micromax is already looking to foray into the African market and also looking at the Middle East and also in Russia. The Indian company, which once was the biggest smartphone seller, is going to invest in their products including the TVs along with smartphones.

Lava, on the other hand, is eyeing the African market with Uzbekistan and Russia into its sight. The company has already sidelined a sum of INR 150 crores to enter those markets. Many researchers believe that the international market is something that can offer these companies a relief and a chance to exist in today’s market.

-Unmesh Phule

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