The FMCGization of Indian Mobile Handset Market

The Indian Mobile Handset Market is coming of age. There are more than 30 Indian Mobile Handset players. The Industry is going strong with impressive numbers and is now resembling the marketing favorite FMCG Industry.

Let us look at the few common features with FMCG Market:

1. Strong Global Players With Indian Challengers

Indian FMCG Market is a vibrant place with global players like Unilever and P&G. Global players have been successfully challenged by Indian companies like Nirma, Cavin Care, Marico, Ghadi etc.

Similarly, Global Companies like Nokia, Samsung, LG have been strong in India. In fact, Nokia enjoyed Maruti-like status in India. However, now it is challenged by Indian players like Karbonn, Maxx, Fly, Videocon, Micromax, Intex etc.

India is a very important market for Unilever as well as Nokia, P&G as well as Samsung.

2. Price Wars

The FMCG market has seen price wars and companies like Unilever launched Wheel to counter-attack Nirma. Similarly, Nokia, LG and Samsung have launched sub-2000 Rs phones to counter the various Indian brands.

3. Product Enhancements

Indian FMCG Players have used strong product features to differentiate themselves. Whether it is special packaging, different price points, product ingredients – FMCG players have been innovating and improving products.

Similarly, Indian players have innovations like Dual SIM, long battery hours to differentiate themselves apart from price advantage.

4. Distribution

In FMCG, Distribution is God ! Companies like HLL, Colgate, Cavin-Care have built a great distribution machinery. It is their biggest advantage. Similarly, Nokia and others have created a great distribution network and a strong sales team, which has resulted in nearly 2 million handsets being sold every month in India!

5. New & Improved !

FMCG Products excel in re-launches with minimal changes – The New & Improved. FMCG products play with different colors, size and ingredients.

Indian Mobile players are also playing with bold Indian colors, new sizes and aesthetic appeal.

6. Celebrity Advertisement

Indian FMCG Players have developed and promoted the concept of celebrity advertisements. In fact, Lux prides itself in promoting Indian beauties and every top celebrity is promoting multiple FMCG Products.

Videocon, Maxx India, Lemon etc have started using Indian Celebrities for differentiating themselves in the Indian advertisement scenario.

7. Counterfeit

The Global Players face the problem of product plagiarism in India. Whether is Vicks, Colgate or Parachute, there are several Indian versions.

iPhone and Blackberry handset designs are the most copied designs in India. There are many foreigns handsets which are openly sold with duplicate designs.

8. Product Flanking Strategy

Unilever, P&G started it and Nokia and Indian players are mastering it !