The Chronicles of Micromax

Shivam Singhal
Jun 24, 2018
3 min read

If you don’t re-invent yourself, you won’t see where the markets are moving.

Rahul Sharma

Founder of Micromax Informatics

How it all started

From being the business of distributing hardware solutions to manufacturing mobile handsets, Micromax has come a long way ever since its inception in 2008. There was a time, when buying a mobile handset meant entering a store and purchasing a Nokia handset, for a large portion of the consumer base.

At that point of time Micromax focused on low pricing of smartphones to compete with the international brands like Samsung which already have pitched a higher market share in India.

So how this ‘desi’ brand disrupted the handset market which dominated by the companies likes Samsung and Nokia.

How Micromax placed a berth to become the largest smartphone player in the Indian market?

Well, the company focused on low sensible pricing strategy that worked for them. Another factor which worked for the company is that Nokia was losing its connect with the consumer.

Although, the company was focused on rural markets initially, a strategy that was quite opposite to the route followed by other smartphone players.

Micromax launched many innovative products such as handsets with 30 days battery backup and dual SIM/dual standby to cater the rural consumer needs as most of the population of India resides in rural areas.

The company also realized that the Indian customer always looks at products that have low cost and to deliver value for money. After six years of operations Micromax ousted Samsung Electronics Co Ltd as the leading brand in all types of mobile phones by grabbing a 16.6% market share. Recently the company forayed into mobile accessories, ACs and TVs and expanded their footprint in 12 countries.

Micromax Was Once a Rising Star & Now it Struggles

Once a rising star in India, the company’s market share has nearly halved, several top executives resigned. Micromax’s model was adopted by most of the smartphone players like Samsung by rolling out affordable phones.

As the same Chinese factories are entering the Indian market with their own brands, depressing prices and forcing Indian mobile makers to rethink their strategies.

Too much focus on the entry level handsets leaving the market between Rs 10000 to Rs 15000. Over 75% of its smartphones were 3G enabled thanks to Jio it took it by surprise.

A flurry of top level executives’ exits including the CEOs hammered the decision making and lack to raised fresh funding undermined a proposal by the new executives to move Micromax’s research and design operations, which had previously been outsourced, in-house. The move was intended to help Micromax differentiate itself from generic Android clones.

And regular technological advancements was not made into the phones this could be another reason to which people have moved on from Micromax to reached out to other smartphone makers.

Will Micromax Claw Back into their Own Game?

As per a report by Cyber Media Research, Micromax sales decline last year with the latter reporting a 30% fall. Although its profit triples to Rs 365.8 crores in Q4 of 2017.

It took the company six months to make into the transition. In November introduced new phones in the market with next-gen technology. According to a report by The Mobile Indian, around 48000 units of the Canvas Infinity went out of stock during the first sale in just two hours on Amazon India.

It’s now time for Micromax to come from behind, and get ahead of the Chinese pack.

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