How does a brand break into a market that is dominated by big names? Dhaka Tribune posed this question to Micromax’s Vice President of International Business Amit Mathur, who believes that counting on innovations, targeting specific consumer requirements and understanding usage patterns is the key.
Micromax has in recent years shifted from cheaper phones to value for money products as a decided approach to cater to the needs and fulfil the aspiration level of a vast target audience. Democratisation of technology and innovation is the core of their business.
Can you tell us a little about Micromax’s beginning, before Bangladesh, and since you joined in 2012?
Amit Mathur: Micromax is an Indian mobile phone company that had previously been a distributor. We made the move to mobile phones seven years back, because we saw a need at that time of a dual-sim phone which other companies were not offering. We got into the mobile phone business through feature phones, and started expanding our business in India.
As the smartphones started getting more and more popular, we jumped the Android bandwagon. We realised at this time that neighbouring countries like Bangladesh and Nepal had a similar demography, and it only made sense to get into these markets. We were seeing a lot of traction in India, we were consolidating our base and at the same time entering these markets. We did get into these markets about three years back but real effort started about a year back with Android.
Since I joined in 2012, we as a company have focused on the potential of the Android market. Not to say we are ignoring feature phones, in fact we have recently launched a feature phone, the X088 which I hear is one of the highest selling feature phones in the Bangladesh market; unfortunately there is no official market data.
How did you get the word out in the Bangladeshi market?
There are a number of satellite channels that are very popular in Bangladesh, fortunately, so we had that. But instead of focusing on TV we started doing a lot of work at the ground level. We started a visibility drive, branding stores, dealer boards; we took it step by step. What was most important was for us to cover the entire country, and we currently have spread our distribution network to 66 districts. The business is steadily growing and we are appointing more and more distributors. We have a definite footprint.
As far as the retail market is concerned, we tried something new and innovative. We started a programme called “Bandhan” among all the retailers. Under this we have introduced a retail visibility contest, so that our retailers are competing against one another, very enthusiastically. We provide them with a variety of point of sales materials and it is up to their creativity to use it to decorate the shop. This competition is working for us because when a customer walks in, he is seeing Micromax branded all around. We have seen tremendous participation from retailers – almost 200 of them are participating from Dhaka and Chittagong alone.
The smartphone market is picking up in Bangladesh and we have a lot to do here. We are committed to being here and offering innovative, affordable products.
How does one break into a market, specifically Bangladesh, which is already dominated by big names?
If there is a big name that means they have already put in a lot of hard work, so it is obviously difficult to compete. Having said that, there is definitely scope for competition. Micromax breaking into a market dominated by big names first of all means figuring out where the product gap is and where the price gap is. This is what we focused on. We offered features at more affordable prices which helped us gain a foothold in the market. Our team, partners and retailers all put in a lot of hard work.
What does “Nothing Like Anything” mean?
What we are saying is that Micromax products are unique. Whether on feature or smart phones, we are offering something more.
Does this reflect on the company as well?
We are different because we are very nimble-footed and we react fast. We have grown from the grassroots level, having previously worked on distribution, so we understand different aspects of this business. We are a company of young people hungry to grow. There is definitely scope for us to be a top player globally. We believe in democratising technology and this is what keeps us going.
When did you notice the Bangladeshi market?
Bangladesh is a big market, it’s a growing market, and we also feel the economy will grow big time in Bangladesh. We were doing well in India and the demographic being so similar, we decided to look into it as well. When we analysed the market we quickly saw the opportunity. It’s a very keenly contested market, with a lot of local players and all doing well. There’s also a lot of growing potential for Android here, which is another thing that attracted us to it.
What similarities are there between Bangladeshi and Indian markets?
There is a similarity in the very way business is done. As far as products are concerned, the needs are unique everywhere. We had notions about which products would do well here, but we quickly realised the demands are slightly different here. We are working on introducing products here relevant to this market. Since Android is so popular here, on the occasion of Eid we have launched seven new models of Android phones covering a very broad price bracket, making sure there is a product for everyone.
Micromax is currently available across the SAARC countries and Russia. How is the future of the company looking?
We take time to enter a market, but when we do, we become very aggressive. We have started operations in Russia this year, and gained a foothold, but it is too early to say anything yet. We are obviously looking forward to expanding, but as I have said, we will be cautious with our approach. Before that we obviously need to build the product and the brand, and good customer support has to be available before you can make your mark in a country. We are spending a lot on brand building in Bangladesh, and have already introduced 18 service centres, which is part of our aggressive strategy. We will have put in six more before Eid. We do want to become one of the big names, but it will take time and we want to do it right.
We will be working on our service and introducing new products as part of our commitment to Bangladesh. We are looking at introducing smartphones designed for easy transition from feature phones which we believe will be very helpful for an average feature phone user here.
