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What is your outlook around Indian mobile phone market?<\/strong>
At this point of time, the Indian handset market is doing extremely well as the sector saw double digit growth reaching a record 49 million units in Q3 2019. This market is growing in leaps and bounds for all its segments, primarily for below 20k price range segment. For a market above Rs 20,000 price range, there are a handful of players who are dominating the market. If I talk about itel in less than Rs 5,000 market, we see that the brand is growing rapidly. As per the last GFK report, the market size for less than Rs 5,000 was limited with almost around 5.5 million devices<\/a> but in the forthcoming year, we expect that market size will register multi-fold growth.
Does itel have similar offerings?<\/strong>
itel has a lot to offer in the price range of Rs 3,000 to Rs 5,000 in the smartphone<\/a> segment. itel is currently the number one player in less than Rs 5,000 price segment in offline channels. Here, we see a lot of opportunities because our target markets, which are tier 3-6 cities are majorly driving India’s growth. Today, In India, more than 60%-65% of the population resides in T3 cities and below towns and are below the age of 30. This section of population has high aspirations. The mid-range and premium smartphones market is flooded with options. Consumers can choose between a myriad of feature-packed handsets from premium brands.
It is not the same for the ultra-low budget price category, which usually falls under Rs. 5,000. Here, the options are very limited and mostly falls short of expectations. itel is trying to fill this gap by providing consumers with decent smartphones that suit the aspirations and pocket of the mass segment. Since we have already cemented our positioning in under Rs 5,000 offerings, now with our upcoming products we'll be targeting segment under Rs 5,500 with technologically advanced and premium feature based devices.
At one point of time, we thought 2G feature phones will be over in India whereas today out of 1.2 billion total wireless telecommunication subscribers, more than 600-650 million are 4G users and 50\/60 million are 3G users, and 500 million users are still using 2G services. Though the industry has started talking about the shift to 5G, in India, more than 50% of the base is still sitting at 2G.
But the idea is to shift to 4G?<\/strong>
Undoubtedly, the idea is to move to 4G but for that, the subscriber base must be 4G. India’s growth will be driven with the transition to 4G phones because a 2G phone has its limitations. While we eventually want to get into 4G, currently there is a huge 2G opportunity as well. With itel smartphone, we want to encash the 4G requirements with the product offering that is less than 5K eventually, dominating it with a more than 50% share. Currently, we are the number 1 player in the offline channels under 5k and we see huge opportunities coming our way.
How do you tap your target audience? How is it different from urban areas?<\/strong>
In less than Rs 5,000 market for itel, we have some limitations with marketing initiatives considering the difficult terrain, linguistic and cultural variation in the Indian geography. In order to overcome these challenges, itel has crafted a differential marketing strategy that varied from region to region, depending on consumer requirements, language and sensibilities with the right balance of conventional and unconventional marketing initiatives to ensure brand connect and awareness.
In addition to this, we are doing a lot with sales activity, on-ground visibility, wall paintings and other associations such as the partnership with the UP Yoddha Team in Pro-Kabaddi League. We have also done a lot of OOH activities across different markets. Other than that, we are also focusing on 360-degree marketing campaigns, digital campaigns, and radio outreach. We are deeply connected with our consumers with these local initiatives.
Is it not challenging for you because these days Chinese guys are coming up with IPL sponsorships and all? Do you face any challenges from the Chinese counterparts?
<\/strong>Challenge has always been there but here the Transsion global strength is really helping us. If you see itel globally, we are the number one player. Transsion Holding is among the top 5 OEMs in China. Backed with thorough research and of course considering scale of business, itel brings some best of the product offering equipped with latest and trendy features under less than 5K price point, which is difficult to bring in the market.
Is growth coming from developing countries like Africa?<\/strong>
Africa is our biggest market. Over-all in Transsion, we have a multi-brand strategy with sub brands: itel, Tecno, Infinix and Oraimo. In markets like Nigeria and Cote d'Ivoire, we have more than 70% market share. But Transsion always works on emerging markets. Transsion is one of the top original equipment manufacturers in China but we don't sell it in China. Transsion is focused towards emerging markets. Other than Africa, Latin America, we are there in Mexico, South-East Asia, Middle-East, Russia etc, we are a global player.
As far as India is concerned, it is going to be one of the biggest markets. In India, Transsion is not only doing sales in India, but it is also expanding its capability in terms of manufacturing in India. The Make in India initiative by the government will take us ahead into the path of achieving Digital India mission. Transsion plans not only to manufacture in India for the Indian customers, but it also plans to export from India.
Are you planning to expand the current manufacturing facility?<\/strong>
Currently, we have an area 2.5 lakh square feet for manufacturing. In the coming time, we are looking forward to a huge expansion of the facility to cater to the demand from the market.
This is a kind of extension to the existing facility?<\/strong>
Today, 2 SMT lines, 11 packaging lines, more than 2600 people working in the unit. By 2020 H1, we would like to build this further.
What about the production scale?<\/strong>
Production scale is almost 15 lakh feature phones and around 6.5 lakh smartphones. But maybe during the Q1 2020, these 15 lakhs should be more than 20 lakhs and these 6.5 lakhs should be more than 10-15 lakhs. We are not only serving India, but we also cater to the demands of the Nepal market.
How are you looking at the existing government policies? <\/strong>
We are getting a lot of support from the Government of India. The good part is that the MeiTY conducts industry meetings every alternate month. The government of India closely works with all the OEMs, supports us and keeps a regular check form managing the challenges. The government is consistently helping us with various initiatives like recently Minister of Finance announced that anybody who sets up his manufacturing facility after 2019 and before 2023 will have a 15% customs benefit. 25% Corporate tax is another initiative. Some minor challenges are there such as 2% reduction in exports while other things are completely fine.
So, on the back of these policies, are you looking at expansion of India operations in terms of headcounts or maybe facility or touch points?<\/strong>
We will be wanting to further invest and increase our expansion in manufacturing. Manufacturing will be one of the core areas.
How many service centres do you have in India? <\/strong>
We have two company-owned or company-operated Carlcare service centres, one in Mumbai and one in Noida. The rest is third-party centres but the entire quality and hygiene everything is controlled by our team. We have a picked service team, though third-party, because everywhere it's difficult to have your own service centers. We on a monthly basis check about our customer satisfaction. The customer satisfaction is more than 96-97% because we do independent third-party service. It is not that a random survey, we talk to each customer who visits our service center, on their experience, what is the turnaround time, when did he\/she get their handset.
For itel, we have a 100-day replacement. Things are going right but yes; it is a super aggressive industry where selling is difficult but getting the bottom-line as well as the top line together is aggressive. Since we are a global company with footprints in more than 60 countries. India is among the top priority markets for us.
Who are your channel partners?<\/strong>
Transsion has more than 3400 channel partners. In itel, for feature phones, we have more than 1,00,000 retailers.
What is the percentage that you see offline v\/s online sales?
<\/strong>Currently, the average is 35:65 (online: offline). During the festival period, it becomes high with online becoming 45%. But this is not the actual case, because many retailers in tier 4,5,6 markets are purchasing online but sell offline. There are customers who are still not confident to use the wallet, make the payment and later get the product. They ask the retailer to pay for them online and then they buy from the retailer.
How are you looking at 5G in India and ecosystem readiness?<\/strong>
For 5G, we are working closely in the Chinese ecosystem but if you observe 5G is still in the nascent stage in china too. In India, some brands may bring some 5G compatible models H2 2020, but most of these models will be majorly above Rs 20,000 price category.
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今年Transsion双智能手机生产
Transsion印度、中国移动设备公司的一部分Transsion控股生产品牌,如Tecno itel Infinix,正计划扩大在印度当前的制造工厂。
读到
你在印度手机市场前景是什么?
在这一点上,印度手机市场做的非常好,部门看到两位数增长达到创纪录的4900万辆2019年第三季度。这个市场正在飞速地所有的部分,主要是为20 k以下价格区间段。市场上面Rs 20000价格范围内,有一些球员主导市场。如果我谈论itel不到5000卢比的市场,我们可以看到,品牌正在迅速增长。按照去年GFK报告,不到5000卢比的市场规模是有限的几乎550万左右设备但在即将到来的一年,我们预计,市场规模将注册正在成倍增长。
itel有类似的产品吗?
itel有很多提供Rs 3000到5000卢比的价格区间智能手机段。itel目前的头号球员在不到5000卢比的价格段线下渠道。在这里,我们看到很多机会,因为我们的目标市场,这是3 - 6线城市多半推动印度的增长。今天,在印度,60%以上-65%的人口居住在T3城市和城镇和低于30岁以下。这部分人口的壮志豪情。中档和高档智能手机市场充斥着选择。消费者可以选择从高端品牌大量的功能丰富的手机与众不同。
价格是不一样的超低预算范畴,通常属于Rs。5000。在这里,选择非常有限,大多低于预期。itel试图填补这一空缺通过向消费者提供不错的智能手机,适合大众的愿望和口袋。因为我们已经巩固了我们的定位在Rs 5000产品,现在我们即将到来的产品我们会针对段下基于Rs 5500和技术先进的优质特性的设备。
在一个点的时候,我们认为2 g手机将于12亿年在印度的门户,而今天总无线电信用户,超过600 - 650 4 g用户和50/60万3 g用户,和5亿用户仍使用2 g的服务。尽管该行业已经开始讨论转向5克,在印度,50%以上的基础仍然是坐在2 g。
但是这个想法是为了转变4 g ?
毫无疑问,我们的想法是搬到4 g,但对于用户数量必须是4 g。印度的经济增长将推动过渡到4 g手机因为2 g手机有其局限性。虽然我们最终想进入4 g,目前是一个巨大的2 g的机会。与itel智能手机,我们要兑现的4 g需求小于5 k最终产品,占据超过50%的份额。目前,我们的1号球员在线下渠道5 k,我们看到巨大的机遇。
你如何利用你的目标受众?它是如何不同于城市?
在不到5000卢比itel市场,我们有一些局限性与营销活动考虑到困难的地形,在印度地理语言和文化差异。为了克服这些挑战,itel了微分不同地区的营销策略,根据消费者的需求、语言和情感的平衡常规和非常规营销计划,确保品牌连接和意识。
此外,我们做了很多与销售活动,地面能见度,壁画和其他协会,如在Pro-Kabaddi Yoddha团队的合作联盟。我们也做了很多哦活动在不同的市场。除此之外,我们还关注360度的营销活动,数字运动,和广播宣传。我们深感与消费者与这些地方的举措。
这不是挑战你,因为这几天中国和所有人想出IPL的赞助商?你面临的任何挑战的中国同行吗?
挑战一直存在但这里Transsion全球力量实际上是帮助我们。如果你看到itel在全球范围内,我们是一个球员数量。Transsion控股是中国五大厂商之一。与深入研究支持,当然考虑业务规模,itel带来一些最佳的产品配备最新、时尚的特性在不到5公里的价格点,这是在市场上困难。
是来自非洲等发展中国家的增长?
非洲是我们最大的市场。在Transsion全面,我们有一个多品牌策略与子品牌:itel, Tecno, Infinix Oraimo。在尼日利亚和科特迪瓦等市场,我们拥有超过70%的市场份额。但Transsion总是工作在新兴市场。Transsion是最顶级的原始设备制造商在中国,但在中国我们不会出售。Transsion集中流向新兴市场。除了非洲、拉丁美洲,我们有在墨西哥,东南亚,中东,俄罗斯等国家,我们是一个全球性的球员。
就印度而言,这将是一个最大的市场。在印度,Transsion不仅是做销售在印度,但也扩大能力而言,在印度制造。让印度政府计划将我们未来的道路实现数字印度的使命。Transsion计划不仅在印度生产的印度客户,但也从印度出口计划。
你打算扩大当前的制造工厂?
目前,我们有一个面积为2.5十万的平方英尺制造业。在接下来的时间,我们期待着一个巨大的扩张设施迎合市场的需求。
这是一种扩展现有的设施?
今天,2 SMT线,11包装线,超过2600人在单位工作。到2020年H1,我们想进一步构建这个。
生产规模怎么样?
生产规模几乎是15十万的功能手机,约6.5多数智能手机。但也许在2020年一季度,这些应该超过20卢比15卢比,这些应该超过10 - 15卢比6.5卢比。我们不仅服务于印度,但我们也迎合尼泊尔市场的需求。
你看现有的政府政策如何?
我们得到很多来自印度政府的支持。好的部分是MeiTY进行行业会议每隔月。印度政府密切与所有的oem厂商,支持我们并保持定期检查表单管理的挑战。政府一直帮助我们与各种行动像最近财政部长宣布谁设立制造工厂在2019年之后,在2023年之前将有15%的关税中获益。25%的公司税是另一个计划。有一些小挑战如出口减少2%,而其他的事情是完全好的。
所以的这些政策,你在看印度扩张操作的总数或设施或接触点?
我们会想进一步投资和增加我们在制造业的扩张。制造业的核心领域之一。
服务中心在印度你有多少?
我们有两个公司或直营咖啡店Carlcare服务中心,一个在孟买和一个在诺伊达。其他第三方的中心,但整个质量和卫生都是由我们的团队。我们有一个服务团队,尽管第三方,因为到处都很难有自己的服务中心。我们每月检查对我们的客户满意度。客户满意度大于96 - 97%,因为我们做独立的第三方服务。它不是一个随机调查中,我们跟每个客户访问我们的服务中心,他们的经验,周转时间是多少,什么时候他/她的手机。
itel,我们有100天的替代。事情是正确的,但是是的;这是一个超级积极的行业,销售是困难,但得到底线以及顶线一起是咄咄逼人。因为我们是一个全球公司的足印在60多个国家。印度市场是当务之急。
您的渠道合作伙伴是谁?
Transsion拥有3400多家渠道合作伙伴。在itel功能手机,我们有超过00000个零售商。
的百分比是什么你看到离线v / s网络销售?
目前,平均35:65(在线:离线)。在节日期间,就与在线成为高45%。但实际情况并非如此,因为许多零售商在第4层,5、6市场购买在线但离线销售。有顾客还是不能自信使用钱包,付款后得到产品。他们要求零售商支付在线然后从零售商购买。
你看5 g在印度和生态系统准备就绪?
5克,我们密切合作在中国的生态系统,但如果你观察5克在中国仍在萌芽阶段。在印度,一些品牌可能带来一些H2 2020 5 g兼容的模型,但是这些模型将Rs 20000具以上价格类别。
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