Lenovo owned Motorola Mobility has made a major strategic move by entering into offline retail. In a bid to give more impetus to their sales in the subcontinent, Motorola device will be available in brick-and-mortar stores from now on.
Presently Motorola sells its existing products exclusively through online e-tailer Flipkart in India. With the online only strategy helping to keep selling costs down, Motorola realized that offline was the way ahead if they need to survive in the Indian market. The company's online only sales had went on pretty well until the inception of Chinese playes like Xiaomi, OnePlus in the Indian market.
This isn't the first move by an online only company to bring their devices to the offline market though. Just a week back, Motorola counterpart Xioami tied up with Chennain based mass distributor Redington for offline retail. Nevertheless this new move by Motorola will help the company to reach out to the masses with their budget stock UI Android devices.
GizBot believes that Micromax will be the main competitor for Motorola in the offline retail market. Having developed a huge retail chain in the past few year, Micromax will fight it out for every small offline retail market share. Same goes for some other Indain OEMs like Intex, Karbonn and Xolo.
Speaking about the move, Chen Xudong, President - Mobile Business, Motorola Mobility Motorola Mobility Operation Board told ET, "Motorola will go offline to make sure that more people buy Motorola products from brick-and-mortar stores in India," Furthermore Motorola will be leveraging its parent company Lenovo's offline retail strength.
Lenovo, which is one of the largest PC makers in India, has a significant offline channel in the country. Xudong said that people in India are still buying devices through the offline retail channel, and have not completely shifted to e-commerce sites, thus it makes sense to broaden the customer base for the Motorola brand.
Xudong further added that Lenovo may also look at bringing its online-only smartphone brand ZUK to India in future.
"ZUK is Xiaomi like model from Lenovo. The motive behind this brand is to try the new business model and be successful in that space. Currently, the focus is to make it a success in China," he said.