Rural India is one of the main contributors to the Indian economy. India is known for its agricultural economy as a huge part of its revenue is generated by the agriculture sector. This sector is very important and most part of this country comes under rural areas. The villages where the technology is not of the highest quality and the high-end companies do not want to engage with that audience.
However, the rural part also calls for a lot of business opportunities. The market is vastly untapped and there are eyes on that market. Like Xiaomi and OnePlus dominated most of the urban areas, Transsion Holdings, dominated the rural or the tier 2,3,4,5 or 6 markets. Its brands Itel, TECNO, and Infinix were sold rapidly in these markets.
Transsion Holdings did thorough market research before entering the market. Their phone brand Itel was an instant hit amongst the users in rural India. It offered high-end specs for a very low price and that meant a lot in the rural parts. The growth rate of Itel was 200% in its first year and that made them launch two more brands. TECNO and Infinix were the brands they launched.
The difference was the price amongst these three sub-brands. Itel strictly operated in the sub-price of INR 6000, while TECNO catered to the INR 6000 to 14000 while Infinix was one its top end brands. Infinix operated in the range of INR 6000 to 20000. This is how they segregated their three sub-brands and it was clever as the company raked in a good revenue at every year’s end since it entered the Indian market in 2016.
That said, the company is already looking beyond smartphones. They are looking to launch their home appliance division in India. This comes with a similar strategy for Transsion Holdings. They will serve people with great products at a very less price compared to the big boys in this sector. Transsion will bring their home appliance under the brand name Syinix. Syinix will offer TV, washing machines, refrigerators and more and will target tier 2,3,4,5, and 6 cities.
The research has already begun in states such as Rajasthan and eastern part of Uttar Pradesh. They have already started selling the 32-inch TV at INR 14000 and 40-inch smart television sets at a price of INR 25000. This research will help them develop the study so that they can enter the 49-inch and 55-inch market. They have rightly started their research with TVs as rural areas have 17% more households which use a television than urban areas.
Transsion Holdings is going to offer many more things along with exciting prices through Syinix. The other thing which people look at after the price is the warranty period. With many of the established companies offering 12 months of warranty and guarantee for the product, Syinix will offer 24+1 months of guarantee and warranty on each of their product.
– Unmesh Phule