Technology giant Lenovo Corp, has announced that it will increase it’s offline presence in India, in an aim to regain its market position.
In April-June 2017, Lenovo owned Motorola has seen the dropped down in its position to number 5th from Second position last year as its shipment declined QoQ. Where on the other hand Samsung topped the position.
In an report, published by IDC India said that ” The overall mobile phone market shipments saw a modest 6.5 percent QoQ growth after declining consecutively for two quarters. 34 million units of feature phones were shipped in the Q22017 with 8.9 percent growth from the previous quarter but remained flat as compared to the same period last year.
In an interview with Executive VP of Lenovo and Chairman of Motorola, Aymar de Lencquesaing said to TOI at “That is the battle we need to win. As the online sale is just 27% of the total market. We have a robust position there, but have growth left in offline which is why you will see us attack it more.”
Even-though the smartphone manufacturing giant has tied up with e-commerce players to launch their products, it is still contributing a small amount, where the bricks and mortar stores are contributing nearly to 73% of the total sale revenue.
Sudhin Mathur, MD of Motorola Mobility India and country head of Lenovo Mobile said that “The next growth will come from there so we are increasing our distribution and setting up Moto Hub exclusive retail stores.”
Adding to this, He said that “The stakes are high for Motorola in India, where it sells under both the Moto and Lenovo brands, unlike in the US and Europe, where only the Lenovo brand is sold. India, where it sells 12 million smartphones annually, ranks second in terms of volume, lagging only behind Brazil. In value, it is behind the US and Brazil.”
De Lencquesaing said that “Consumers are moving towards performance requirements and there is more demand for phones priced between $ 150 and $ 350 (Rs 9,750-22,750) in the category of $ 100 to $ 150 (Rs 6,500 to 9,750), which is a good sign for us, as we are positioned there perfectly.”
Motorola, has recently doubled its manufacturing capacity to 12 million units and it is “ready to increase more” if needed