MAXX believes “Feature Phone” segment holds huge potential

Ajay Agarwal,
Chairman & Managing Director
MAXX Group

The Indian smartphone segment is growing at a phenomenal rate of more than 150 per cent today. There are various segments in the smartphone market catering to different customers. One of the domestic handset-makers, Maxx has focussed on the low- and mid-end of smartphone market in the price range of Rs.3,000 – Rs.7,000. It believes that this segment holds huge potential in India, as a large number of feature phone users are upgrading to smartphones. Elaborating more on the company’s policy, latest mobility trends and channel initiatives, Ajay Agarwal, Chairman & Managing Director of the MAXX Group, shared his views during an exclusive interaction with VARINDIA. Excerpts… 

More than 80% of the phones sold in India are feature phones. We are extremely strong in this category and offer the largest number of models and the best price value equation to the customers. We have launched more than 80 new feature phone models this financial year. We have successfully tapped major distributors of feature phones, to ensure that our product is available across the country.

Is the Phablet concept picking up among Indian customers? Will Phablets substitute smartphones in the near future in your opinion?

Yes, the market for phablets is growing and accounts for almost 40 per cent of the market. However, we believe that there will market for both. Phablets or large screen size (5’ – 6.9’) smartphones offer better experience of clicking and viewing photographs, watching videos, reading documents, etc. Smaller screen smartphones (3’ – 5’) are easier and more convenient to carry in your pocket and also more convenient for making calls. So though the phablet share is likely to increase, but there will be market for both, depending on the individual consumer’s needs and preferences.

The low-cost tablet market is on the rise in India. What do you have to say to this sudden surge and what are your plans for this particular market?

Tablets sales have grown by more than 50 per cent in 2013, fuelled largely by low-cost tablets. Tablets are seeing a good demand from newer sectors like education, financial services for KYC documents, healthcare services, etc. However, the growth rate has slowed down in the second half of the year, largely due to BIS certification being made mandatory by the government, which has reduced the number of new tablet model launches. The rising popularity of phablets is another factor responsible for the slowing down of growth rates. We shall have several new models with latest features to cater to the demand of the low-cost tablet segment. 

How much of your sales come from the Channel, Retail and e-commerce media? Which one is flourishing for you at present?

Currently, our maximum sales come from channel. We will be increasing our focus on e-commerce and modern retail in the next year.

What is your strategy around support?

We have about 1,000 service centres to provide world-class customer service. We will continue our focus to provide a delightful experience to the customer.

How do you try to be at the cutting-edge amidst hundreds of other home-grown Indian brands?

Our focus is on providing the best product quality, latest technology, widest product range, best prices and best customer service to distinguish ourselves from other brands. 

You must be well aware of the Indian consumer psyche by now. What are the most common features that they aspire to have in their phones?

The Indian market is large and heterogeneous, with different consumer segments seeking different features. The mass market consumer of feature phones looks for features like good cameras, long-battery life and good multimedia capability. Local language capability is something which the Indian consumer wants. We are the only Indian company offering up to four languages in feature phones and up to 15 languages in smartphones. WhatsApp is another feature which is being used by the masses as well as the high-end customers alike. In fact, several feature phone users are upgrading to smartphones, lured primarily by WhatsApp. 

What are your future plans for the Indian mobile device market?

We want MAXX to be a significantly large player in the domestic market and the most sought-after brand in terms of product quality and customer experience.

satinder@varindia.com