Consumer Preferences for Buying Smartphones in India
With the rapid advent of the demand for latest electronic gadgets, especially mobile phones and other consumer appliances, India is all set to become the leading market for cost-effective smartphones across the globe. In a country where 64 % of the population is predicted to fall in the working age group by 2020, the demand for smartphones which are of the optimal quality, at the same time meeting the expectations of the consumers and falling within a viable budget is now at its pinnacle. As per a recent report in the South China Morning Post, Chinese smartphone makers are now looking at the Indian market as a destination which can be used to capture the expectations of the 1.4 billion consumers, who are inclined towards cost-effective smartphones which have the best possible features within minimal budgetary constraints.
Xiaomi, which happens to be a leading Chinese smartphone maker is now eyeing the Indian market with number priority, especially in the areas of design, R & D and supply. The company has already developed an edge in the Indian smartphone market, by becoming leading brand amongst other companies like Vivo, Oppo and Huawei, which are having a comparatively lower market share. With low domestic competition amongst the smartphone companies within India, the competition amongst the Chinese smartphone makers is now really rigorous. Indian consumers expect premium features such as a high resolution camera, latest Android operating system, good networking capabilities such as provision for dual SIMs, availability of 4G Long Term Evolution (LTE) services and the like, which the low-cost smartphone makers are significantly able to provide through their present policy of exponential focus on the design process, research and manufacture of India-focused smartphones, which meet certain services and features for example, availability of regional languages and improved battery life, alongside durability and reliability.
Also, as now India has the world’s cheapest mobile data with the growing domestic competition amongst the cellular companies after the advent of Reliance Jio, the demand for low-cost smartphones is only expected to grow in the coming decade. As per a report by the Indian Government in 2012, more than 22 % of the country’s population still lives below the poverty line, which is close to a similar study by the World Bank in 2011, wherein 23.6 % of the population is said to be stuck in poverty. The low-income levels in a vast fraction of the population is a prime contributor to the reason why people prefer cost-effective smartphones over other reputed and expensive brands such as Samsung, Nokia and Apple. Even for consumers who can actually afford to buy more expensive smartphones, the preference for low-cost smartphones with an enormous choice offered by the Chinese smartphone makers is something which still continues to sustain. High-cost smartphones, such as the iPhone offered by Apple is facing a significantly downward trajectory in demand by the consumers due to this very reason, as there is no question of the consumers preferring appliances at prices which are almost 20 times the cost of a low-cost gadget, with generally same or closely resembling features. This is the key reason why the low-cost smartphone makers have given rise to monopolistic competition in the Indian market, thus giving little scope for more expensive brands to compete with them.
With the policies of the Indian government trying to promote the initiative of manufacturing appliances domestically through the “Make in India” and other similar ventures, even though some companies like LYF, VIVO and Karbonn have started to witness an increasing demand, still the majority of consumers prefer low-cost counterparts offered by foreign companies like Xiaomi, Huawei, One Plus etc. due to the premium features offered at the lowest possible prices. Further, it cannot be neglected that the marketing strategy of the cost-effective smartphone makers, especially the Chinese ones is far better than the present marketing initiatives by the domestic ventures.
To summarise in a nutshell, the Indian consumer’s perception of an ideal smartphone is that of quality, features and cost-effectiveness going hand in hand. The consumers are preferring smartphones which are affordable, at the same time offering quality features to sustain their day to day requirements. This is the key reason that the market share for foreign smartphone makers like Xiaomi is only set to grow rapidly in the coming decade, with the shift of focus from the Chinese market to the Indian market, wherein the products are now being designed to suit the expectations of the Indian consumers. With the budget, features and brand being the primary 3 factors, which lead the consumer to opt for a particular smartphone, there seems to be a clear monopoly which the cost-effective smartphone makers have established in the Indian market.
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