Videocon, with 27 years of association with Indian consumers, is one of the India’s largest Consumer Durables Company providing latest technology products in categories such as TVs, washing machines, ACs, refrigerators, microwave ovens and other home appliances. With 3 global R&D centers, 7 manufacturing units and highly skilled work force of over 25,000 employees including over 7000 outside India, Videocon has been introducing latest technologies and products to consumers in India. In 2010, Videocon launched its most successful venture Videocon Mobiles.
Mr. Jerold Pereira, CEO, Videocon Mobiles, shares, “We are the only domestic player in India who is focusing seriously on convergence of technology to create smart homes where appliances like refrigerators, televisions, washing machines, air-conditioners all can be connected and controlled by smartphones. We have 360 million households in India and convergence is at the top of our mind. As you know, Videocon has different verticals like telecom, satellite television, home appliances, etc. We have been in the Indian market for the last 27 years. We have 3%-4% share in the smartphone market in terms volume. But I would like to say that our objective is not pushing up volumes. We want to do that in a way that is profitable to the company.”
The desire to innovate and the passion to enrich consumers lives, has earned Videocon a place in India’s top 15 Business Houses and among 100 emerging Giants of the world (BCG Study).
‘Make In India’ concept is still not economically feasible
Jerold avers, “We are designing and manufacturing feature phones in India. As far as smartphones are concerned, we are designing in India and we also add apps in India, but we getting the volume manufacturing done overseas. Before we can start full-scale manufacturing in India, the ecosystem in India has to rise to a level that makes domestic manufacturing economically feasible.”
Driven by ideas, led by innovation is at the core of everything, from conceptualization to product design, the company could come up with products that not just meet the needs of the consumer but exceed their expectations. Be it a cutting-edge smart-phone or a basic yet feature loaded multimedia phone, Videocon Mobile Phones make sure that each new product is a fresh delight to its customers.
Expected future trends
Regarding future trends in smartphones, Jerold opines, “Screen sizes will increase in future. Nowadays 3.5-inch phones are on the decline and 4-ich screens are replacing them. 3G segment is increasing and we can see 4G making its entry. Smartphones are selling more than anticipated in terms of numbers which shows how well smartphones are being accepted in the Indian market. But I do not think feature phones will disappear completely, because some people of certain age-groups, who just need to talk still use feature phones which are also easy to carry and handle, still prefer feature phones. Convergence will be the new trend with smartphones.”
Videocon’s range of Tablets & Smartphone are a perfect combination of technology & style which gives you access to thousands of apps, runs on superfast processors and latest Android technology. You will also never miss on the fun with powerful battery support & light weight that give effortless and sustainable experience.
There is an ongoing debate on the issue of online retailers cutting into the pie of traditional channel. In this regard, Jerold states, “Videocon’s supply chain has been built on traditional model of channel network and the traditional channel has been and will remain the winner of bread and butter for us. That does not mean that we should ignore the ecommerce opportunity, but we have to play with caution in a way that will not impact the traditional channel. We launch only specific models on the ecommerce sites which are not released on the traditional channel. This will ensure that there would be no clash. In US ecommerce forms 8% overall. In India, only in certain segments like smartphones, online sales may be 8% or 10%. But taking the sales of all the consumer goods, online sales in India can be less than 1%. In future online sales will increase.”
Videocon’s innovative and world class range of phones is backed by prompt and efficient customer service thorough its countrywide network of over 500 service centers and dedicated customer help desk. This combined with the heritage and consumer-centric business approach, places Videocon ahead of others.
Videocon’s marketing strategy
Regarding marketing strategy and areas of operations, Jerold asserts, “We are cautious and steady in our approach; we don’t believe in moving superfast and then crashing out. We have 2 manufacturing plants, 1 in Aurangabad and 1 in Kashipur for feature phones. We are also planning to open plants in Hyderabad and Mangalore. As far as smartphones are concerned, it is not possible to manufacture everything in India, but we are making effort to manufacture at least partly in India. We are doing well in high-end feature phone segment. For example, we have launched a high-end feature phone with camera, powerful 3000 mAh battery and local language support. It is doing pretty well. We are targeting some specific regions for sales. In Punjab, we have a good market. In Telangana and AP put together we have good share. In Karnataka, we have good value-share with more smartphones selling there. In UP and Bengal, we are doing well. We felt it is not wise to focus on all states at the same time. Once we are well established in targeted states, we will focus on other states. We have been in the market for the past 27 years means customers have faith in us and also do expect certain quality standard from us. We deliver what the customer expects from us in terms quality, reliability, contemporary technology, etc. We put the best info into the smart phones we sell in terms of features, software, etc to give the best possible user experience at particular price point. ”