Wednesday, August 3, 2011

Micromax - Success Story

Micromax is definitely a success story in terms of mobile manufacturing in India. The company started making mobile phones is 2007 and they stand at a big chunk (around 9%) market share in India, which is a remarkable success. Micromax started in 1991 and they were in the hardware distribution business. It has become the largest Indian domestic manufacturer and is continuously improving its market share.

The main strength of Micromax is that they rely heavily on the local R&D. They carry out lot of their production in China and Taiwan. The main mantra of their success is that they identified the needs of people and targeted the right products for them and they were bound to sell.
The Micromax X1 which has a 30-day stand by battery back up is a product, which came out from a small incident. Apparently, somebody saw in a small town that there was a person carrying a car battery on the back of his bicycle and people were coming to him and paying him some money to charge their mobile phones for some time. This immediately rose the need that people living in small towns and villages need to have a phone with very high battery and that is the way they came up with this phone and it helped them to establish their brand strongly.
Micromax has also brought the popularity of dual sim phones and currently there are about 22% dual sim phones sold in India. Micromax has hit on the niche segments with specific needs of people and they have been quite successful. Another example is the special phone for women with flashy stones and good design. Each Micromax phone has a separate USP attached to it. They have realized that even a niche segment in India is a big one given the size of the population. In India where there are tons of manufacturers, establishing a brand is not easy and Micromax has done it pretty well. Micromax has still a long way to go. Thumbs up to Micromax…!!!

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