Micromax Heads Towards Software And Services Biz
The domestic smartphone maker, Micromax Informatics is betting big on Software and Services business. The company is building an ecosystem of services to provide a seamless experience over 100 million connected devices. The attempt is seen as its efforts to transform from a handset maker to an integrated device solution provider in the highly contested smartphone industry.
As the country is heading towards cashless payment, Micromax is emphasizing on digital solutions such as mobile wallet. The company aims to have 15 million customers doing cashless transactions on its mobile wallet Udio by 2016. Udio is integrated with “Around”, the ecosystem of services. To enable that, Micromax in 2015 signed a three-way pact with digital payment provider Visa and TranServ. The company recently unveiled new phones in the Canvas series, Canvas 6 and Canvas 6 Pro with the built-in mobile wallet, pegging payments and services as critical pillars of its growth strategy.
“We want to allow our consumers to easily access the services and at the same time we want to provide a platform to the service providers where they can reach out to the large number of consumers. ‘Around’ is a very simple way for our consumers to discover the services around them”, said Shubhajit Sen, Chief Marketing Officer, Micromax Informatics.
Also Read: Future Of The Indian Economy Is Cashless
According to the study of Research and Markets, the global mobile wallet market is expected to grow between 52 per cent and 53 per cent from 2016 to 2020. With a number of e-wallets such as playtime, Mobikwik and Freecharge already established in India, Micromax is contemplating to position audio as its key differentiator. The company also intends to offer consumers a connected device experience across Micromax devices. To facilitate this, it is heavily focused on the consumer electronics space such as Smart TVs. At present, Micromax, has a 8 per cent share of the total market in the TV panel segment.
“We started with mobile handset manufacturing and gradually established ourselves as a leading consumer electronics brand. We want to make sure that there is a seamless transition and experience for consumers across Micromax devices. To do that we are entering into new categories in consumer technologies”, Sen said.
As a part of its expansion strategy, Micromax recently unveiled a new brand identity with the launch of its new logo and brand philosophy ‘Nuts: Guts: Glory’. The company also refreshed its corporate, brand and product strategy with the launch of “Micromax 3.0”. Paving the way to become the leading brand in the consumer electronics space, the company announced 20 new smart devices across smartphones, Tablets and LED TVs. Micromax has also announced to revamp its online arm, storemicromax.com, and plans to launch a full-fledged digital store within 2016.
The company also intends to ramp up domestic production to achieve its 100 per cent ‘Make in India’ plans and reduce dependence on imports. It announced to invest INR 300 crore for three new manufacturing units in the country. The new plants will be set up in Rajasthan, Telangana and Andhra Pradesh and expected to become operational by this year.
“We will continue to be the fasted growing brand in India. At the same time, we are seeing a big role for ourselves in the software and services play. As part of our strategy for Integrated device ecosystem, we will enter into new consumer technologies and also reinforce our strengths in the international markets. Significantly, we will ensure that we efficiently go down the journey in the Make in India initiative”, Sen said.
Since its inception in 2000, the growth of this home grown brand has been pronominal. The company not only emerged as the second top smartphone brand in India, but also established its presence in the international markets including countries in the SAARC and Russia. Micromax is the only Indian smartphone brand to make it among the top 10 global smartphone brands.
According to IDC, Micromax is the second smartphone maker in India with around 17 percent market share. Its rival Samsung holds the top position with a 23 per cent share in the smartphone business in Q2 of FY 2015. Micromax, reportedly clocked $2 billion in revenue in FY 2015-16 and expecting to grow by 30-40 per cent this fiscal.
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