Since last year, because of the domestic mobile phone market is saturated, Meizu, cool, Lenovo, OPPO, millet, Huawei, gionee and vivo and many other mobile phone brands in China, almost all of India as a sea of choice. India of market potential self-evident, population intensive, and economic uplink, and patent regulatory system not perfect, and intelligent machine penetration low (not to 30%), almost all people are believes, future years India intelligent phone market growth outbreak soon, India future growth for after China became global second big intelligent phone market also almost no suspense, this is domestic manufacturers to align align will India as sea preferred of important reasons.
India national brands Micromax mobile phone manufacturers and more cost-effective
For now, India's highest market share manufacturers are neither Samsung nor domestic manufacturers, but India local manufacturers. While in India, market share ranking the top mobile phone manufacturers Samsung last year, but this year it has been India's biggest smartphone makers Micromax beyond. Micromax in India's market share is more than 22%, followed by Samsung, Intex and Lava, two India local manufacturers respectively to 9.4% and 5.4% of the smart phone market share won the third to fourth place.
We know that domestic mobile phone manufacturers, Lei is a low-key and unassuming careerists. Millet, in which he set the next 5-10 India localization of a long-term strategy, said millet will be copied in China's successful experience in 3-5 do India market share. Huawei and other manufacturers are also expected in India market to fight, win a big cake. But domestic manufacturers into India market has been fighting a price war with each other for some time, but found the India market is a tough nut to crack. In fact, opponents not faced by domestic manufacturers Samsung, nor friends in China, but also started with price of Micromax India local brands.
Almost all Chinese millet has long been steeped in the low-end market, just a few years, almost completed for Samsung, HTC and other brands in the domestic market will remain intact. Arguably, from last year to this year, the domestic manufacturers to attack India market should mix of wind, but in fact, we found that, as of now, mainstream domestic vendors not in India market highlights, even in India work under Samsung has long been squeezed first throne. We also found that the price/performance strategy, domestic manufacturers suffering from India domestic enemies of the powerful attacks.
Well-placed Micromax understands India policy, the small market and user needs
From the core strengths and technical point of view, Micromax is more than beating Samsung and domestic manufacturers of hard power. Because Micromax does not has similar Samsung, manufacturers of industry chain of control capacity, it main used posted brand of mode, almost all of products are from Shenzhen generation factory, it also not has chip of development capacity, chip of dealer for China Spreadtrum Communications, it maximum of advantage and selling is cheap and price advantage, according to understand, Micromax of launched of 70 dollars low price phone is swept whole India market, like it of sold models A62 intelligent phone is swept India. But we also see that Micromax has the advantage of more than domestic manufacturers understand India policy, the small market and user needs.
India handset market started as a denizen of Micromax and Nokia's suppliers, provides India specific lower-priced, this manufacturer of smartphones sold substantially below $ 70, launched its high-end flagship models are also in the $ 150~200 the price range, sales. In terms of price, thousands of China-made mobile phones hard edge. The current situation is that India competition in the low-end market more brutal, no minimum, only lower. Huawei domestic glory 6 plus, mate7, millet is sold in high-end models, such as 4 in India compared with the price of Micromax's flagship machine, also lost its cost advantage.
The other hand, India market situation, the domestic Smartphone popularity phase, functional machine is mainstream, smartphones are rapidly developing. India mainstream network is 2G,3G is not yet common, 3G penetration is less than 10%, but made thousands of machines are supported 4G network, and even build a so-called Internet service ecosystem in India 2G has essential failure in the network status. Starbucks iPhone 6 Case
In addition, India local manufacturers understand national conditions and needs and sales channels on the network edge. India's situation is one of the large population, public environmental noise, Micromax mobile phones often improve in terms of sound quality to match India noisy environment. India Women favored jewelry, Micromax is embedded in the mirror and jewels to the main female in the fuselage. In addition, Micromax mobile phone more attractive reasons is that better understand national conditions, have an advantage in the local language and service, such as Micromax to launch local language services also include a variety of phones, launched to support more than 20 kinds of supported India dialect of smartphones. Due to the deep knowledge of the psychological needs of local consumers, Micromax is constantly India function machine for domestic users shift to Smartphones.
Collective short offline retail channels are domestic manufacturers India local manufacturers deeper roots
Domestic thousand Yuan used to channel sales through the Internet, but in India, but is hampered by domestic mobile phone is an important factor. India's Internet penetration is very low, network channels share minimum, millet, network can directly save a cell phone 30% cost, e-commerce sales channels can be said to be Chinese millet channel cost savings, an important advantage of a price war, but in India, mobile phone again this advantage disappears. Because even through network channels to seize part of the user, if copied to India first, will face India's legal policy challenges.
According to relevant statistics, India imposed on foreign direct investment policies in the field of electronic commerce, namely to overseas companies listed abroad in India the development of electronic commerce, must be within a 5 year time frame, 26% equity-backed India and entered the field must be a B2B e-commerce. So far, manufacturers more co-operative strategies such as millet, millet with India's largest online Web store--Flipkart Internet Pvt. OPPO uses Amazon India Company's platform.
But at the same time, offline retail channel India firmly in control of local manufacturers. According to understand, India has over 1.1 billion above of population are live in big city zhiwai of rural area or town, these area Internet penetration very low, through Internet channel hard cover to these mainstream user market, so dispersed of line Xia retail channel network is essential, and as India leading of domestic phone brand one of of Karbonn, they in India territory has has has over 80,000 a above of retail dot. Micromax's offline retail channel is quite perfect. So we see that 2 years ago began to enter India from scratch to build their own online store sales system of the Golden State, but can get India more than 2% market share.
So, a mainstream cell phone to enter India, first of all to build offline retail network channels, millet also announced it will intensify in the India market investment, opening India plant, opened stores, but it is not at manufacturers such as millet, laying and offline retail channels need roots India native, requires time and huge human cost of capital to complete the below the line. For fast from India earn quick money makers in the market's demographic dividend, down-to-Earth will not be easy. From the other hand, India's business environment is not conducive to domestic manufacturers in India with a local offline retail channels and market local manufacturers.
State of pain: India to resolve the employment crisis support manufacturing local firms enjoy the dividends policy
We know from the above mentioned India e-commerce provisions in the field of foreign direct investment can be seen, India market in order to foster its own e-commerce platform, do not allow foreign merchant to India consumer direct sales of products. This is reflected from the side, India's national brand protection policy causes it to not open a business-friendly environment, but which also has India State of pain.
We know that India is a relatively poor population under development, while development in the economy, but a rapid population growth in poor countries, employment is always the India Government's top priority. Leading national brands are best protected by the Government. According to statistics, India Government likes tax on international companies abroad to earn money back. Such as India have been changed after the new law, many international companies for back taxes. In fact, this reflects on the one hand India the protection of national brands, but at the same time reflecting the environment worse for business investments. Disclosure of industry data shows that India in the international business environment ranking, has ranked more than 140 more than the following, the business environment more so than Iran.
Mobile phone industry is India part of the development strategy of manufacturing industry under State Government. Last September, India Narendra Modi Government put forward "India making" slogan, build manufacturing centers in the world is India based on the current state of the future strategic objectives.
For India such development in the of population powers for, to development employment, labor intensive of phone manufacturing undoubtedly is preferred, so we see, India welcomes abroad manufacturers to India opened factory, but not special welcomes only opened retail stores or only through electric business channel sales products and not support India manufacturing of manufacturers, because India Government treats foreign of starting point all is sent hope foreign to India can led local employment and manufacturing of prosperity. So we see in India to build a factory of Apple in India almost no retail store, it is said that with the Government's attitude towards the manufacturing sector greatly. Jin in India online retail stores in its progress towards a plant based on gradually developed. So, no line of millet also said the opening of the channel advantage and experience India plant, opened the store. Step by step this year has plans in India to open factories, has been with India Government and approved. Therefore, the domestic mobile phone in India's mobile phone production, you may need to depend heavily on its own factory to solve capacity.
India local protectionism: the deep crisis of domestic manufacturers in the future
All this reflects India Government protectionism under the selection based on local conditions.
From international environment see, while, China production cost rose, on the, India rupees devaluation, India Government to stimulus local economic, must need support local phone manufacturing supply chain, while also see has local intelligent machine market of huge potential, and to weakening domestic economic contradictions, India also is strategy sex adjustable rose intelligent phone, electronic products of import duties, speed up development India phone manufacturers itself assembled, and development, and manufacturing intelligent phone capacity, actually, Micromax is the Government's policy to stimulate and support, has grown to become India's largest mobile phone manufacturer. Micromax also carried the India brand impact of international expectations, often publicly expressed the need to save its founder India economy in response to Prime Minister MODI visions and policies, develop India mobile phone manufacturing, which reflect its national ability to incite emotions. So, Micromax in India under national conditions, have a local policy to protect and India the great advantage of national emotional identity. In this connection, is domestic mobile phone manufacturers in India market rewarding the greatest obstacle, and domestic manufacturers in the future in India's deep crisis.
So we see that, actually, right time and India local conditions are not conducive to China-made mobile phones in India's rise. To captured India market, domestic phone manufacturers need research India of conditions, and policy and subtle of user psychological needs, deep line Xia channel and this based Shang sought local of cooperation, if always hold with challenge and beat India local manufacturers sat Shang India phone market first put spot of idea, that may in led to domestic phone follow-up in docking India local market of process in the, due to on policy and India conditions of not understanding and led to a collective "acclimatized" of big defeat.
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