Micromax has just resurged among the Indian community, putting the Chinese smartphone giants under a huge stress. The giants — Xiaomi and BBK are worried to the extent that they claim to be Indian at heart. While Xiaomi says it’s manufacturing is based in India, BBK has labelled Realme an Indian startup altogether.
A major reason for so much of tussle is PM Modi’s mantra of being Vocal for Local, which has been taken seriously by the Indians after the Indo-China Ladakh skirmish on 15-16 June 2020. The other reason for the same is the return of a local leader into the industry — Micromax. The company has said in a tweet that they’re working on something big and will be back soon. This has raised an alarm among the leading players of the smartphone industry in India as Micromax held over 25% market share in 2016. But regaining a lost spot isn’t easy, and when the players are professionals, the job gets tiresome as well as challenging.
Micromax : Comeback Challenges
It’s obvious to have tons of challenges when you’re re-entering a market you used to lead. However, the developments in technology are rather too swift, hence the challenges are diverse to be faced.
Compete with an Advanced Research & Development Team
The top players in the Indian market, say Xiaomi are not single entities — rather a brand group. They hold multiple brands under them and have a comprehensive R&D team which benefits the entire group. There is a huge investment in Research & Development to provide the best quality products to the customers. The newly launched Mi Horizon 14 is an outcome of such efforts of Xiaomi. For Micromax to survive in the market, it requires a talented pool of researchers with ample funds to develop the technology, instead of copying it.
A Quick Generational Transition
When Micromax was a leading smartphone giant in India, the market had the domination of 3G phones — Micromax’s niche. However, with the launch of Jio in 2016 which provided only 4G services, the Micromax handsets went out of use. The customers went to new brands who were dealing in 4G smartphones — Xiaomi and BBK. Moreover, Micromax used a lot of Chinese parts in its smartphones and wasn’t prioritised by the suppliers since the competition was from China itself. Therefore, if Micromax plans to stay this time it needs to have an AIM — Advertising, Innovation and Manufacturing.
Building the Brand Micromax with Quality in the Core
None of the big players in the smartphone industry have sustained with poor quality. Micromax had a pathetic quality of service even when its revenues crossed 10000 crores a year. However, brands such as Xiaomi and BBK held quality at the peak even when they were newbies in the market. Therefore, the users switched from Micromax to these brands in 2016-2017 due to lack of a brand value. It’s difficult to make users switch from Apple products based on price, because it has a strong brand value. Micromax will have to earn such a brand value to sustain itself in the post COVID-19 market of India.
Conclusion
For Micromax to be back into the Indian smartphone is very easy — they aren’t bankrupt. However, to survive against the Chinese giants in the industry where the customers are going for quality, low prices won’t work as a bait. The company will have to develop its own technology, like Xiaomi and BBK to ensure a lasting user experience. Brand names aren’t built overnight, but a professional is always a beginner on Day 1. Hence, Micromax might have sighted the silver lining amidst the dark clouds of COVID-19.
