 "High-end smart phone affordable luxury in India: Sirpa Ikola")
Taiwanese smart phone maker HTC targets to almost treble its market share to 15% in India over the next few years by launching more products, expanding distribution network and increasing the number of service centres.
The company has identified India as one of the top two key markets in South Asia, Sirpa H. Ikola, senior director (marketing), South Asia, HTC, said in an interview with Sounak Mitra. Edited excerpts:
You entered India quite a few years back with high-end smart phones, but lack of service and limited distribution stalled the growth. However, the second attempt for a come back seems successful so far. Is the growth sustainable this time?
We focus on design and high quality smart phones. We are also building authenticity in terms of branding, making it more bold. For HTC, India is a key growth market in the coming years, and we want to emerge as one of the leading smart phone players.
How do you position India?
India is among the top two key focus markets for HTC in the entire Asia Pacific region. Another key market in the region is Australia. But, expanding reach remains a challenge in a country like India which is so big.
We are increasing our retail touch points to about 7,000 in the next six months from about 3,500 at present, mainly with multi-brand retails chains. Number of service centres will be expanded to 400 from 250 by that time as well. Our target is to capture 15% of the market as soon possible.
How different is India as a market?
People here are generally very informed about technology. So, they want more in the low segment as well. India is actually a very value-sensitive market, it’s not price sensitive. People are ready to pay if they see value in a product. This is what we try to tap.
Now high-end smart phone has become an affordable luxury in India. On the other hand, with increased affordability, average buying price has gone up and average replacement period for a high-end smart phone has come down to less than a year. Social peer pressure also play a key role in handset replacements among the affluent youths.
How is your strategy different for India?
About 50% of India’s smart-phone market in volume terms is priced above Rs 10,000. We would restrict ourselves in the segment above Rs 10,000. But, we are introducing most of our key-selling features in lower-end of our portfolio. Even top-end features are now available in our handsets priced at around Rs 16,000. Unless consumers see value at every price point, it would be very difficult to become successful in a market like India.
Arrangements with operators, including those of dual-technology for our dual-SIM products, increasing options for regional languages, options of colours, and giving options of equated monthly instalments (EMI), both six months and 12 months would certainly boost HTC’s growth in the world’s second largest population. We are also increasing our offering in the mobile accessories segment in India.
The company has identified India as one of the top two key markets in South Asia, Sirpa H. Ikola, senior director (marketing), South Asia, HTC, said in an interview with Sounak Mitra. Edited excerpts:
You entered India quite a few years back with high-end smart phones, but lack of service and limited distribution stalled the growth. However, the second attempt for a come back seems successful so far. Is the growth sustainable this time?
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The opportunity here is huge. In next three years, India is going to be the third largest handset market globally. And when operators roll out 4G, the opportunity will increase many fold for the smart-phone makers.
We focus on design and high quality smart phones. We are also building authenticity in terms of branding, making it more bold. For HTC, India is a key growth market in the coming years, and we want to emerge as one of the leading smart phone players.
How do you position India?
India is among the top two key focus markets for HTC in the entire Asia Pacific region. Another key market in the region is Australia. But, expanding reach remains a challenge in a country like India which is so big.
We are increasing our retail touch points to about 7,000 in the next six months from about 3,500 at present, mainly with multi-brand retails chains. Number of service centres will be expanded to 400 from 250 by that time as well. Our target is to capture 15% of the market as soon possible.
How different is India as a market?
People here are generally very informed about technology. So, they want more in the low segment as well. India is actually a very value-sensitive market, it’s not price sensitive. People are ready to pay if they see value in a product. This is what we try to tap.
Now high-end smart phone has become an affordable luxury in India. On the other hand, with increased affordability, average buying price has gone up and average replacement period for a high-end smart phone has come down to less than a year. Social peer pressure also play a key role in handset replacements among the affluent youths.
How is your strategy different for India?
About 50% of India’s smart-phone market in volume terms is priced above Rs 10,000. We would restrict ourselves in the segment above Rs 10,000. But, we are introducing most of our key-selling features in lower-end of our portfolio. Even top-end features are now available in our handsets priced at around Rs 16,000. Unless consumers see value at every price point, it would be very difficult to become successful in a market like India.
Arrangements with operators, including those of dual-technology for our dual-SIM products, increasing options for regional languages, options of colours, and giving options of equated monthly instalments (EMI), both six months and 12 months would certainly boost HTC’s growth in the world’s second largest population. We are also increasing our offering in the mobile accessories segment in India.