The Indian mobile accessories industry is a huge market approximately worth approximately Rs. 10,000/-crore. However, 90% forms a part of the unorganized market. Mobility India caught up with Jyotsna Uttamchandani, Executive Director, Syska Group to know how they are leveraging its resources to gain higher ground in this segment.
What are the major factors affecting demand for Mobile Phone Accessories in India?
The major factors affecting the demand for mobile phone accessories in India is the growing user base of smartphones. India is the second largest smartphone market in the world after China. Over 440 million phones were shipped to India in the last year. There is an upward moving graph in the smartphone industry which has given mobile accessories an equal opportunity to boom.
Mobile accessories like power banks, Bluetooth speakers, earphones, wireless headsets are gaining traction among Tier I as well as Tier II consumers. Online sale of these products have increased tremendously as technological advancements are consistently giving a push to this segment.
Today, almost 65% of the Indian population is aged below 35 years and 50% below 25%. They are all looking for smart accessories that are not only are a fashion statement but also make their life easier. For example: Wireless buds – Used for fitness, running, on the go to keep you free of tangled wires. Not only this, our widespread distribution network is definitely a vital factor. Companies are looking to capture every multi-brand outlet, small / large retailers and also use the growing e-commerce platforms to gain competitive advantage. Moreover advanced technology devices & accessories available at affordable prices are also a key driving force.
What are the latest Technology & Market Trends in the Indian mobile accessories market?
The latest trends in the Indian mobile accessories market can be summed up in two words – Smart and hands free. Wireless technology is the future. With the constant hustle in consumer’s lives especially millennials, no one has the time to detangle wires. Trends of wireless devices like wireless over the ear headphones, fitness neck bands, earbuds, and smart watches are all catering to this segment of smarter, faster and efficient technology. It is also no longer only about style and looks but rather about bringing comfort and convenience to people’s lives. For instance a power bank can save us time and energy in looking around at an airport for mobile charging stations.
Some of the most popular mobile accessories today are power banks, neck bands and earbuds. However, there has been a consistent rise in demand for fitness bands and portable speakers as well.
India is a price-sensitive market? Do you think this trend will change in the near future?
The future is here already. We have witnessed a 14% growth in the smartphone industry in 2018. By 2021, we are looking at almost 33% growth as per statistics of smartphone shipments coming into India. This shift has been prominent as the sales of smartphones have heavily increased in comparison to feature phone. Whether it is a smartphone or mobile accessories brand, companies have understood the evolving needs of consumers. Syska as a brand is also catering to the rapidly changing needs and demands of consumers. Some consumers look for low cost earphones with no warrantee while there are consumers who do not mind spending heavily for a product with top notch quality.
We at Syska offer products in three different price ranges, however our bestselling models fall within the high and mid range products. There will ofcourse always be a market that demands low priced products with high quality. Being a customer centric company, we are looking to fit into every space and cater to the varied requirements of our customers.
Additionally, consumers in India have started understanding the value of good quality products and after sale customer service. There is definitely a change in the mindset from “We need a charger to charge our smartphone” to “We need a fast charger that does not negatively affect the battery life of our smartphone in the long run”. Lack of brand awareness was initially a major issue for most brands, however today there is an increase in demand from consumers who are seeking new and innovative mobile accessories.
What is the biggest challenge the mobile accessories brands are facing in India?
The biggest challenge in this industry is the threat of piracy. We are constantly facing counterfeit production of not only our brands but also of our competitor companies. Along with that, a lack of standardization is slowing down the growth. We are no longer looking at brands from India but also Chinese brands looking to enter this business in India. Adhering to competitive pricing is a key challenge for sustained growth.
What opportunities do you see in the Indian mobile accessories market?
As mentioned earlier this is a Rs, 10,000 crore industry. Every consumers need is an opportunity in itself. Syska’s main aim is to focus on affordable and quality products that make consumers lives comfortable and convenient by using the latest innovative technology. Young India comprising of millennials and GenZ are looking for new and innovative products that are classy and simplify their lives.
As per the market analysts, there are only a few standard brands operating in the mobile accessories market in India and still there is an unfilled vacuum. What is your opinion on this and how you want exploit the situation?
Yes, 90% of this market is unorganized, and this is a huge opportunity for us. Syska has introduced quality mobile accessories for its consumers across segments. We have primarily been a distribution oriented company and will continue to grow our offline channel partners. We are currently present in 17,000 retail outlets and are continuously driving our team to be present in every store right from a small retailer or chain to a multi-brand outlet. Customers only buy what they see and hence we want to be seen everywhere. Competitive prices, great quality products and customer service are what will drive our business further.