Is David Gonna Win

Hi World,

Indian mobile handset market is going to get bloody.

Nokia is losing market share in India. According to the 09-10 data Nokia market share dipped from 64% in ‘08-09 to 52.2%.

The biggest winner is Micromax which has gained a market share of none to 4%. The question is “Will Micromax win this War”

In my opinion it will be not very easy for Micromax. My reasons are as follows

  • Nokia has built a strong brand image. Although the Nokia phones are considered costly but their quality is never questioned
  • Strong focus on R&D will let Nokia launch innovative and improved product
  • Great after sales service network

Micromax has won the initial battle (thanks to IPL, IIFA and Akshay Kumar) by registering its brand on the minds of consumer but It has to still win the war of gaining trust of consumers who are buying these phones because they are cheap and good looking. But the trust can only be gained by superior product quality and great service.

Micromax and other low cost brands may be able to capture some share from established brands but premium and most profitable segment will always be for established brands. The segment where consumers are early adopters, need innovative products and quality

Only time will tell what Micromax is upto. Stick to the low cost strategy or move up the ladder and gain brand loyalty and trust of consumers

I believe the case is exactly what Nirma did to Rin and Japan did to America “Awakening the Sleeping Giant”

Bye for now and do leave your comments


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