Lava International, the domestic mobile device manufacturer, has set its sights on acquiring a 10% market share in the sub-INR 30,000-priced smartphone segment within the next two years. This ambitious goal will be backed by an investment of up to INR 600 crores in product development and marketing, as disclosed by Sunil Raina, President of Lava International.
In the backdrop of significant challenges faced by Indian mobile phone companies, including competitive pricing from foreign players, the impacts of demonetization, and the implementation of GST, Lava International undertook a strategic revamp to reaffirm its market presence. The company reintroduced its smartphone business with a strong emphasis on enhancing the customer experience, which included providing at-home repair services.
Mr. Raina highlighted the critical role of technology and visibility in achieving growth. Lava International intends to allocate the INR 500-600 crore investment over the next two years primarily toward product development, ensuring that its smartphones remain competitive in the market.
One distinctive aspect of Lava’s approach is its decision to abstain from pre-loading smartphones with bloatware, unwanted pre-installed apps that often detract from the user experience. While this choice may entail foregoing potential earnings from bloatware, Lava prioritizes an optimal consumer experience.
Mr. Raina emphasized the consumer’s aversion to bloatware, as it generates unwanted ads and notifications while also slowing down devices and compromising security.
Lava International is committed to providing regular software updates to address security vulnerabilities and enhance device performance, setting it apart from competitors who often neglect this aspect.
Despite facing a continuous decline in smartphone shipments in the Indian market since April 2022, Lava’s revamped strategy has yielded remarkable results, with the smartphone business experiencing over 200% growth last year and sustaining a 300% growth rate this year.
The company aims to achieve an average annual growth rate of 100% over the next 2-3 years. Currently holding a 2% market share in sub-INR 30,000 smartphones, Lava International’s goal is to secure a 10% market share in this segment.
To reach this objective, the company plans to leverage its existing retail network and expand its online presence. Lava International’s products are currently available in 1.2 lakh retail stores, primarily featuring feature phones, where it claims a 25% market share.
The company intends to extend its smartphone offerings to a broader retail network and strengthen its presence across all geographic regions in India. Furthermore, Lava will boost its online sales, targeting further growth in this channel, which already accounts for 25% of total sales.
Lava International is determined to make a significant impact in the Indian smartphone market through innovation, customer-centricity, and a multifaceted growth strategy.
