Sony Ericsson eyes small towns for expansion

Sony Ericsson will focus more on the smaller towns across the country for its expansion plans. The company will also double its advantage stores in Gujarat by the end of the year 2006.

Sudhin Mathur, general manager Sony Ericsson, India who was in the city on Tuesday to launch its new entry-level colour mobile handset Z300i told Business Standard that smaller cities are the larger market to tap.

"Our 60 per cent of the business comes from B and C category towns. In bigger cities, the market is more for replacement customers," he added.

He said that its distribution partners Ingram and Salona will focus retailing in the small cities and town.

Another significant change in buying pattern, he pointed out, was the preference of colour mobile handsets in small cities.

In the beginning of the last year, 60-70 per cent of the handsets were black and white but by the end of the year, the trend had reversed.

He said that the company is planning to double it's existing 23 advantage stores in the state, which is highest in the country, by the end of the fiscal year.

Talking about the launch, Mathur said, "Looking at today's scenario, mobile users look for handsets that are easy to use, have value-for-money and which does not compromise on style. These new level entry phones have been specifically developed with a focus on easy usage and affordable prices along with international quality."

Priced at Rs 5495, the handset is company's first clamshell handset in the segment.

Commenting as to why he chose Ahmedabad for the launch, he termed that Gujarat is the perfect market.

"The national growth rate for mobile handsets was 40 per cent last year while in Gujarat it was 60 per cent. Apart from economic factors, Gujarat has a large number of young consumers who are always eager to try new products. Therefore, we chose Ahmedabad for the launch as it is a potential market," he added.

The company, he informed, will also focus on music which is the latest drive among consumers.

The handset should be a credible digital music handset, an alternative to music system that support various softwares, should have long battery life and huge memory, he added.

This year, the company will also launch 15 more handsets, he concluded.