Motorola To Repeat India Success Story In Other Markets

by CXOtoday News Desk    Jul 14, 2014


Handset maker Motorola is hoping to replicate its India success story in emerging markets such as Indonesia and other South-east Asian countries. In India, the handset maker has followed an online selling strategy by partnering with online retailer Flipkart. In a span of less than six months, the site had sold one million Motorola phones across three models, according to Flipkart chief executive Sachin Bansal.

Last month the company reportedly started selling its Moto G phones in Indonesia only through online portal Lazada, backed by German investor Rocket Internet, says a TOI report. “We are leveraging lessons learnt here and applying it in Indonesia,” said Magnus Ahlqvist, corporate vice president for Europe, Middle East, Africa and Asia-Pacific at Motorola Mobility told the leading daily, as he added that the company is now evaluating the online-only route in other South East Asian markets.

Experts believe while consumer benefits in terms of price and freebies and discounts, the e-commerce sites witness increased traffic. For example, the Motorola partnership has undoubtedly worked well for Flipkart. They estimate that the online site has sold at least Rs 700 Crore worth Motorola products in just five months. Last fiscal Flipkart sold Rs 6,000 Crore worth of goods, as per reports.

Other smartphone players are also looking at similar business models which they believe is more powerful in terms of tapping the online shoppers in India and emerging countries. The mobile boom, especially increased usage of smartphones and tablets by consumers in these market they believe is driving this sales further.

Alcatel too has reportedly tied up with Flipkart for sale of its handsets and is also selling some devices through the offline route. The company expects sales from online channel to contribute about 12-15% of its revenues this year. Praveen Valecha, Regional Director India BU, APAC, Alcatel OneTouch said the company was overwhelmed with the response received by the customers on the first day itself. “Online retail partnering is a great initiative and we will continue our strategic relationship with Flipkart, apart from walk-in Alcatel One Touch experience zones across India,” he says.

Some however believe, in India, such exclusive online launches may be at a nascent stage. But in China Internet online sales are a major force. For example, only Just 5-6 per cent of the handsets are sold online here, with traditional format accounting for the chunk of the share. Indonesia has been described as the next frontier for online retail where sales are forecast to nearly triple by 2016 as internet and smartphone penetration rises. The country’s population of internet users grew to 74.6 million last year and should almost double to 125 million by 2017. Market sources indicate that Motorola’s model of exclusive online launches in the country will come as a win-win for e-commerce sites and consumers.