Micromax has tied up with Flipkart to co-develop smartphones in the Rs 6,000 to Rs 12,000 price band, which will go on sale exclusively on the site, the companies said today, as the Indian handset maker attempts to claw back market share from the critical sub Rs 10,000 segment which traditionally makes a bulk of its addressable market.
The phones will be sold under the Evok sub-brand and are likely to hit the market next week. With this Micromax will be targeting a price segment that is nearly 50% of total volume in the industry and over 40% by value. The company which has lost its position in the top five smartphone players, is banking on both online and offline platforms to get back into the game. Online channel contributes half of Micromax’s sales in the Rs 6,000 to Rs 12,000 price band.
“It’s a long term agreement with Flipkart, where we will be developing products jointly based on the insights and consumer understanding we get,” said Shubhajit Sen, chief marketing officer at Micromax.
“This is a way of design for India which will take Micromax’s online share up, while it will help Flipkart penetrate deeper into tier 2 and tier 3 markets, as both are targeting the value conscious buyer,” he added.
Flipkart and Micromax said that they will invest in this initiative, but did not reveal the total investment or how much each one would be investing. While a couple of devices under the Evok brand will be launched by Micromax on Flipkart, starting this month, the largest online retailer already has exclusive rights to sell the premium end Dual5 for Rs 24,999.
The Gurgaon-based handset maker aims to capture 10% of the above Rs 20,000 smartphone category in the coming financial year, an area that is Samsung’s stronghold and where Chinese players have made a mark. It feels it can take back its position and even increase revenue on-year by improving its average selling price of Rs 5,740 by a fifth.
In this regard, it is planning new models in Rs 10,000, Rs 15,000, Rs 20,000 and Rs 30,000 upwards categories, with dual camera phones taking share in the higher priced segments.