Lava International Limited is a leading Mobile Handset Company in India and has expanded its operations to multiple countries across the world. During an exclusive interaction with Mobility Magazine, Dr. Rishi Bhatnagar, President, Lava International Ltd talks about the journey of Lava, brand positioning, plans to decolonize the Chinese market and details about the business model.
- Take us through the journey of Lava International Ltd and key milestones.
Lava International Ltd. commenced its journey in 2009 with a mission to empower individuals to achieve more in the mobile handset industry. Founded on the principle of innovation and customer-centricity, the company swiftly made its mark through several key milestones.
Recognizing the importance of research and development, we wasted no time in setting up R&D and manufacturing centers in Noida, Uttar Pradesh. Lava International’s Noida Facility has 7 SMT lines and 12 assembly lines with an employee strength of over 3,000 people.
In 2022, Lava introduced the cheapest ‘Made in India’ 5G phone – Blaze 5G, cementing its reputation for innovation and quality at an affordable price that was well recognized by customers. As Lava continued to grow, we expanded its manufacturing capacity, demonstrating its commitment to scaling operations and meeting market demand. This expansion saw the company’s production capacity reach 42.52 million feature phone equivalent handsets per annum, solidifying its position as a major player in India’s mobile handset manufacturing sector.
Lava’s commitment to innovation, quality, and customer satisfaction has driven its success, particularly in the competitive Rs 10,000–Rs 20,000 price range in India. In 2023, according to Counterpoint Research, Lava was the fastest-growing smartphone brand in this segment, demonstrating a 213% growth rate, thanks to series like Yuva, Blaze, Storm, and Agni, and customer-centric initiatives like “FREE SERVICE @ HOME” and “FREE REPLACEMENT @ HOME.”
Another milestone in our journey, Lava continues to be the most trusted brand among retailers, according to CMR Retailer Satisfaction Audit 2022, Lava continues to be the most trusted brand among retailers.
Lava’s achievements reflect its strong position as an Indian brand in a market dominated by foreign competitors and its ongoing focus on innovation, customer satisfaction, and shaping India’s smartphone future.
- Explain the strategic positioning of the brand.
Lava International Ltd strategically positions itself in the competitive mobile handset market by targeting the affordable segment, focusing on accessibility and cost-effectiveness. This approach is particularly appealing in emerging markets, where a significant portion of the population seeks budget-friendly smartphones and feature phones. The company emphasizes local manufacturing, aligning with initiatives like ‘Make in India’ to reduce import dependency, lower costs, and offer products customized for local preferences.
Investing in research and development allows Lava to innovate and cater to specific market needs, such as regional language support and durable designs. A robust distribution network, especially in underrepresented areas, and effective after-sales service help build customer trust and loyalty. Furthermore, Lava is expanding its global presence, particularly in emerging economies, to diversify its market base. Partnerships and collaborations enhance its technological capabilities and market reach, supporting its overall strategic positioning in the mobile industry.
- Explain your plans to decolonize the Chinese market.
Lava International’s strategy to decolonize the Chinese-dominated smartphone market in India is multifaceted. The company aims to increase its market share from below 2% in 2023 to around 25% within the next four to five years, specifically targeting the under-Rs 30,000 price segment. This aggressive push involves not only staying ahead of Chinese brands in terms of pricing, product quality, hardware specifications, and time to market but also capitalizing on the 4G to 5G transition wave. Lava’s sales have shown significant year-on-year growth, underlining the potential success of their strategies.
The company’s plans extend beyond mere sales; Lava is investing heavily in research and development (R&D) and marketing, with a planned investment of Rs 500 crore. This investment aims to enhance product and service quality, with a particular focus on software, providing a clean Android experience with regular updates. Moreover, Lava is increasing its manpower in design by 25% and has doubled its marketing spending, showing a clear commitment to improving its competitive edge and market presence.
Lava is not only focusing on the Indian market but is also expanding internationally, having acquired Latin American brand China Bird Centro America S.A. and planning expansions into Africa and potentially the US and European markets. This global strategy is complemented by local manufacturing initiatives for tablets and laptops, indicating Lava’s ambition to diversify its product line-up and manufacturing capabilities.
The company’s efforts to provide competitive products and services are supported by governmental positivity towards Indian brands, which helps create a conducive environment for growth. Lava’s comprehensive approach, from enhancing product quality to expanding globally, reflects a robust strategy aimed at decolonizing the smartphone market from Chinese dominance, positioning itself as a formidable player both in India and abroad.
- Since you have been a veteran in the industry, what steps have you undertaken to reincarnate the image of the brand?
Our strategic initiatives have centred on innovation, quality, and global expansion. We’ve diversified our product range with feature-rich, affordable smartphones, focused on quality and durability to regain consumer trust. Our increased investment in research and development ensures we stay ahead of technological trends.
Moreover, we’ve revamped our marketing to engage younger, tech-savvy consumers via social media and influencer collaborations, while strengthening our after-sales services to enhance customer loyalty. These efforts are resonating well, especially with the youth segment, where we’re seeing a positive shift in brand perception and a significant projected increase in market share for 2024.
- Discuss the research & development process.
Lava International Ltd stands out in the Indian mobile handset market with its dedicated in-house research and development (R&D) centre, distinguishing itself as a unique player with complete control over product innovation. The company is committed to significant investments in R&D, planning to spend over INR 500 crore to fuel innovation and enhance consumer offerings. Lava is expanding its R&D, adding more engineers and modernizing facilities in India, with a focus on cutting-edge software like artificial intelligence. The firm prioritizes innovation, evident in its clean user interfaces, early adoption of 5G technology, and regular software updates, aligning with consumer preferences. Future strategies include a stronger focus on 5G smartphones and maintaining a pure Android interface to ensure easy updates, emphasizing customer satisfaction over profit margins. Lava International’s approach underscores a customer-centric philosophy, with substantial investment in technology, expanding R&D capabilities, and a commitment to delivering quality products at affordable prices.
- Brands over the years have been going for accelerated pace of digital transmission in online & offline space. Explain
Over the years, brands have been rapidly adopting digital strategies in both online and offline environments. This accelerated digital transformation aims to meet evolving consumer preferences, enhance customer experiences, and maintain a competitive edge in the market.
In the online space, brands are leveraging technology to provide seamless shopping experiences, personalized recommendations, and efficient customer service. This enhances convenience and drives sales.
In the offline realm, brands are integrating digital tools into physical stores, such as interactive displays and mobile payment options, to create immersive, efficient shopping experiences that resonate with tech-savvy consumers.
This dual approach allows brands to capture a wider audience, meet diverse consumer needs, and stay relevant in a rapidly changing market landscape.
- Take us through Lava International Ltd business model in the next future – your turnover, key focus areas Lava Blaze Curve etc.
Lava International Ltd is gearing up for significant growth with a targeted investment over the next two years, aiming to secure a 10% market share in the sub-Rs 30,000 smartphone segment. This strategy marks a bold attempt to enhance turnover and establish a strong market presence, underpinned by a commitment to doubling the company’s growth rate annually for the next few years.
The company plans to revamp customer experience, notably through home repair services and a no-bloatware policy on devices, to distinguish itself from competitors and strengthen consumer loyalty. Additionally, Lava emphasizes regular software updates to improve security and device performance, addressing a common concern among smartphone users. A key element in Lava’s product strategy is to provide a budget-friendly 5G smartphone designed to offer premium features, demonstrating the company’s focus on innovation in the mid-range market segment. Alongside this, Lava will be entering the smart wearable segment as well with robust products including Smartwatches.
Covered By: Mobility India / Lava
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