Micromax: at MERLION’s only!

The biggest Indian manufacturer of smartphones, Micromax Company, has signed an agreement with MERLION Company on exclusive distribution. Let us mark that in accordance with this agreement the large-scale distributor gets exclusive rights for supplying smartphones of Micromax both in Russia and in CIS countries. The dealer's event combined with the press conference has been designated “Standing start”. “The long-distance runners begin to race from the standing start”, Tatiana Skokova, Director of Division “Large-scale distribution” of MERLION Company pointed out a symbolic name given to the event. The smartphones of Micromax will arrive at the warehouses of MERLION as late as in May.

The optimism of Mrs. Skokova is fully justified: let us recollect that Micromax Company manufactures mass-produced smartphones, simple and, therefore, not expensive, promoting to the Russian market with a focus on an “independent retail”, whereof CRN/RE wrote earlier. Therefore, the vendor needs a large-scale distributor. Let us recollect that MERLION according to their own estimates supplies around 17 % of smartphones to the Russian market even today, while an exclusive contract with Micromax will help strengthen positions in this segment. A distributor possessing experience and competences in promoting smartphones gets into its portfolio a produce of the active vendor, which is extremely aggressive on the local market not concealing its ambitious plans. By the way, Hugh Jackman, a famous and popular Hollywood actor was company's image in 2015. Micromax has conducted potent co-branding campaigns with the biggest Russian service providers, Beeline and MegaPhon, as well as actively cooperates with Veon project (whereof CRN/RE wrote earlier), moreover, it cooperates with the latter not only on the Russian market but on the market of Bangladesh too, for instance.

Micromax will continue an active policy of promoting smartphones in future too. Sameer Kakar, International Business Head, Micromax, addressing the conference spoke about global Company’s plans, in particular, about an intention to join the Top-5 by 2020 of the world and Russian markets of smartphones by sales in physical terms (now the Company is among Top-10). Mr. Kakar emphasized also that Russia is the market “number one” for Micromax Company outside of India, though the smartphones of Micromax are present in fourteen countries beyond the limits of the domestic market. Commencing expansion out of bounds of the Indian market in 2013, smartphones of Micromax appeared on the market of RF in 2014. The Russian subscribers snapped up 1.6 mln devices of Micromax in 2014 alone. Speaking about the history and plans of the Company Mr. Kakar recalled that the Company successfully develops the range of electronic devices, viz having launched lately the manufacture of TV sets as well as refrigerators, dishwashing machines and air conditioners, but the models of household appliances are still available on the domestic Indian market only. Nothing has been said about plans of bringing new commodity groups to the Russian market in the context of the event.

Speaking about tactical plans of a vendor, Ramnik Kohli (in photo), General Director, Micromax Russia, emphasized the Company will focus on the mass-produced devices with reasonable prices in future too, however, he underlined that the tactical plans include also commercial manufacture of the higher-class smartphones hitting the other price segments. If at the present time the Company’s devices are within the price ranges below 10 thous rub, some novelties of this year will be within the range up to 20 thous rub. However, according to Mr. Kohli’s assurances, the manufacturer as before will pay special attention to the segment of low-end devices delivering both price-performant smartphones and traditional touch-tone mobile phones.

Mr. Kohli underlined that the Company’s plans include, as before, lay focus on an “independent retail”, an extension of a model range, presence in different price segments of smartphones. In this case, the vendor is going to offer a better price in the most popular categories, at the same time being ready and willing to increase an average purchase size. The new smartphones of Micromax from the model range of 2018 have been presented at the event. Still, these are the devices built on the principle “the best difference is the absence of differences”. The smartphones are provided with everything necessary “aboard”, but nothing extra, owing to which the vendor can provide the reasonable prices. The recommended retail prices for the novelties for the Russian market will range from 3,990 to 9,990 rub. Micromax offers quite a sweet smartphone C2A featuring a frameless display with 5.7-inch diagonal, finger print scanner, main camera with a sensor for 13 Мpix and storage battery with a capacity of 4,000 mAh with a maximum price.

The brand representatives have paid special attention to the promotion of smartphones, in particular, to the issues of warranty and post-warranty support of Micromax devices, which appears to be a significant advantage in the low-cost category. Let us recall that presently the manufacturer’s warranty period for Micromax smartphones is one year, more than a hundred authorized servicing centres throughout Russia as well as thirty-four servicing centres in CIS countries, on which markets, let us recollect, MERLION has also acquired an exclusive right for distribution, provide the warranty and post-warranty support for the end users.