Apple's Genius Marketing Strategy - How Apple Is Winning In India | Raj Shamani Clips

Summary

This transcript discusses the rise and fall of MicroMax, a major player in the Indian mobile phone market. The conversation highlights the company's strategy of offering innovative, low-cost smartphones and its success in India. It also delves into the shift in India's consumer preferences as the market evolved, with an increasing demand for premium products. The speaker reflects on how the global supply chain changes, including the challenges faced by MicroMax when it couldn't keep up with innovation, and discusses the growing focus on manufacturing in India as a key to future growth.

Takeaways

• 😀 The strategy of the company was to avoid getting caught up in various market trends and instead focus on having multiple offerings tailored to specific needs.
• 😀 In India, the market has evolved from being price-sensitive to a growing interest in premium products, as consumer income and demand for higher-end goods increase.
• 😀 The transition from low-cost phones to smartphones in India was a learning experience and a shift in product strategy.
• 😀 While price sensitivity remains a key factor, a significant portion of consumers is now moving toward premium products, especially in urban markets.
• 😀 India will always be price-sensitive, but the market for premium products is rapidly growing, with a rising segment willing to pay more for better quality.
• 😀 When launching a new consumer product, determining the right price point is crucial, and the reverse engineering approach of setting the price first and building the product to meet that price is a strategy that worked for the company.
• 😀 Micromax, once a global phenomenon, had a massive market share, but lost its dominance due to shifts in the supply chain and global competition.
• 😀 The supply chain shift towards Chinese manufacturers and the inability to access necessary components locally led to Micromax's downfall.
• 😀 The global market was impacted, and Micromax was part of a larger trend, not just an India-specific phenomenon, with global brands competing in markets like Mexico, Spain, and France.
• 😀 Despite initial success, the company had to burn a lot of money, and while the product innovations were strong, the financial strategy did not sustain long-term growth.
• 😀 Looking ahead, the manufacturing sector in India holds more potential for growth than the brand business, with the local manufacturing industry expected to surpass brand-based revenues in the next 2-3 years.

Q & A

What was the core strategy that MicroMax followed initially?

MicroMax's initial strategy was to avoid getting involved in the complexities of the ecosystem and instead focus on being the first to innovate with new technology, such as adopting new chipsets and providing the fastest products to market.

How did the market in India change with respect to price sensitivity?

While India has always been price-sensitive, there is a growing segment of consumers who are willing to spend on premium products. The market is evolving with higher income levels, and there is now an increasing appetite for smarter, more feature-rich products.

What led to the decline of MicroMax in the Indian market?

MicroMax faced a significant decline because the global supply chain shifted, and the company was unable to maintain the same level of innovation and component availability. As supply chains moved toward other countries, the company couldn't keep up with competitors in the long run.

What role did the global supply chain play in MicroMax’s downfall?

The global supply chain shift impacted MicroMax, as they were unable to access necessary components for their products. This shift in the supply chain toward other global players left MicroMax struggling to maintain its market position.

How did the speaker's approach to product development change over time?

Initially, the speaker focused on developing a product first and then deciding its price. Over time, the approach shifted to deciding the price first and then developing the product backwards, ensuring that it fit within the targeted pricing strategy.

How important is innovation in the consumer product industry according to the speaker?

Innovation is critical in the consumer product industry. The speaker emphasized being the first to introduce new technologies and features, which helped brands like MicroMax gain initial success. However, sustaining innovation is necessary to stay ahead of competitors.

What does the speaker believe is the future growth area in India?

The speaker believes that manufacturing will become the primary driver of growth in India, outpacing branding in terms of revenue and overall business scale. The country is expected to see significant expansion in manufacturing in the coming years.

What shift in consumer behavior is expected in India according to the transcript?

Consumer behavior in India is shifting towards a preference for premium products. While price sensitivity remains, there is a growing demand for smarter and more feature-rich products as the middle class becomes more affluent.

What was the importance of being the first to market in MicroMax’s strategy?

Being the first to market with new technologies, such as the latest chipsets or features, was crucial for MicroMax's strategy. This approach helped them differentiate from competitors and capture significant market share during their peak.

Why does the speaker emphasize manufacturing over branding for future business growth?

The speaker believes that manufacturing will be more important than branding in the future because India is expected to experience massive growth in the manufacturing sector. Companies focusing on manufacturing will have greater revenue potential as compared to branding-driven businesses.