Huawei Signs A Deal With Micromax To Expand Its Offline Presence In India

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Chinese technology giant Huawei has joined hands with Indian smartphone maker Micromax to push its sales in the Indian market. The Chinese technology giant has entered into a strategic partnership with the Indian smartphone maker to devise strategies to gain a stronger foothold in the Indian consumer electronics market.

Huawei is known to sell products through retail partners. Under the new phased expansion plan, Micromax will ensure Huawei's presence across the country starting from cities such as Delhi, Mumbai, Pune, Chennai, Kochi, Bangalore, Hyderabad, Ahmedabad, Dehradun, Kolkata, jaipur, etc.

Huawei Signs A Deal With Micromax To Expand Its Offline Presence

 

Once a dominant smartphone player in India, Micromax has almost vanished from the Indian smartphone space. However, the Indian brand has a strong distribution channel in the country which can benefit Huawei in a number of ways. Over the years, Micromax has also invested diligently and laid down a large service network of 650+ walk-in service centres pan India to ensure easy access for every user.

Huawei Signs A Deal With Micromax To Expand Its Offline Presence

Commenting on the partnership, Mr. Sunil Joon, Head - Strategy, Micromax Informatics Ltd. said "We are pleased to partner with Huawei telecommunications, with this long-term partnership we aim to reinforce our commitment towards consumers in India. Huawei has been consistently coming up with compelling technology focused for the Indian market in the premium device category, together, we aim to move a step closer in solving consumer needs with innovative offerings. Additionally, we are looking at boosting our services and strengthening our association with our existing and potential customers."

 

Notably, Micromax and other Indian smartphone brands have almost lost the battle to Chinese brands. Based on the data shared by CounterPoint Research to Gizbot, the individual market share of Indian brands in the smartphone market is as follows: Intex (0.1%), Lava (1.2%), Micromax (1.1%) and Karbonn (0.2%).

The story of the new pact between the two tech giants first appeared on The Mobile Indian. We reached out to Huawei to get some more clarity on the new partnership beween the two brands.

Announcing the partnership Mr. Tornado Pan, Country Head (Huawei Brand) Consumer Business Group, Huawei India said "Since our very entry into the Indian market, the brand has been witnessing overwhelming response from all section of consumers. With an aim to be present where our consumers are, we plan to focus on a robust offline distribution network catering to the needs of consumers in urban as well as the rural regions of the country and to make them experience the innovative technology that has won the hearts of customers' world over."

Globally, Huawei achieved the highest year-over-year (YoY) growth among the world's top five smartphone makers, growing 44.5 per cent with its smartphone sales. As per some reports, Huawei did well in two of its biggest regions, Europe and Greater China, where its smartphone sales grew by 69 per cent and 33 per cent.

India is a different market altogether. Xiaomi has been ruling the charts in Indian smartphone space from quite some time now. As per some recent reports, Xiaomi still sits at the No. 1 spot after shipping 9.5 Million units in Q1 2019. Samsung grabbed the second spot, whereas Vivo showed good growth and managed to steal No. 3 position.

These three brands follow a multi-channel strategy, which has proved quite successful establish a good consumer base in Indian smartphone space. With support from Micromax's wide distribution channel, Huawei has a chance to topple Xiaomi, Samsung and Vivo.

Micromax can help Huawei reach tier II and tier III cities where a large chunk of consumer base still prefer offline channels over e-commerce platforms to buy electronic products. It will be interesting to see how this partnership benifits the consumers and the brands.

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