One of India’s most promising companies is struggling.
Roughly one year ago Micromax secured itself as India’s go-to smartphone brand, even surpassing heavyweight Samsung. Fast forward to current times, though, and the company has slipped to a second place on the podium and is struggling to maintain itself as a leader.
The key to the company’s slow descent is a market which continues to boom and grow. While that may seem like main factors in success, the strong market has actually worked against Micromax.
As reported by Reuters, the smartphone market in India is the world’s fastest-growing with 103 million units shipped last year. That increase is a 29 percent jump, but also prompted more local companies to outsource Chinese manufacturers for production. Now, those same Chinese companies are creating their own brands specific to the Indian market.
More competition has created lower prices means homegrown companies have been forced to approach the business differently or see their own figures drop.
“What the Indian brands did to the global brands two years ago, Chinese phone makers are doing the same to Indian brands now, and over the next year we see tremendous competition for Micromax and other Indian smartphone makers,” said Tarun Pathak, analyst at Counterpoint Research in New Delhi.
Inner management struggles have also plagued Micromax with the company now seeking partnership to help expand into other markets – it is already a competitor in the Russian smartphone sector – and to expand its product line beyond smartphones.