Lava has been consistent in Rs. 7,000-price segment and a 94 per cent year-on-year growth in the Indian smartphone market
Handset maker Lava is eyeing to ramp up its presence in the smartphone market in India by targeting an affordable range – Rs. 14,000. Hari Om, Chairman, Lava International, sees huge potential in this range and gradually it can expand its presence globally to about 27 countries. He said that the 14,000-price segment was worth $113 billion with a 15 per cent CAGR in the past 5 years. The Noida-based mobile device producer is planning to tap into this market opportunity.
Online vs offline sales
According to the Lava Chairman, online platforms are a big boost to the mobile phone market. It has grown faster than offline stores mainly because of the heavy discounts to attract buyers. He cited the example of the major smartphone brands benefitting from the heavy discounts that double their sales in the e-commerce sites. However, he also stated that China-based smartphone makers have been gaining profits from the offline stores four times more than the domestic brands. “Over the long term, heavy discounting is not sustainable. Both channels are here to stay in the long term”, Hari Om was quoted by ET.
Lava in India
CyberMedia Research’s recent report states that Lava has been performing consistently in the Indian mobile phone market with a 94 per cent year-on-year growth in the third quarter that ended in September. Another market report by Counterpoint Research has brought out that it has a 6 per cent market share holding a strong grip in the 7,000-price segment.
The Noida-based handset maker has witnessed a 30 per cent productivity in India and it has surpassed its performance in China.
Lava plans to invest around Rs. 2,600 crores in its manufacturing units in the next five years. It has set a target of capturing about 40 per cent share in the mobile devices market in the 12,000-price segment. The Chairman informed that the company was exploring the vendor and supply chain base to increase its overall performance.