A recent survey has revealed that Nokia enjoys dominant market share in India, but a majority of low income Indian mobile users would prefer their next phone to be made in India. Indian brands – such as Lava, Micromax, and Spice – will benefit from this preference.
As per the survey, international brands that do not enjoy Nokia’s brand equity- vendors such as Samsung, LG, and Sony Ericsson may have difficulties in the low-end handset market.
The Indian brands have only been on the market for a few years, and have gained a modest market share. However, 63% of the respondents who primarily live in rural villages and secondary cities with average monthly household income of about $130 say they would prefer their next phone to be manufactured in India citing the reasons as:
* Lower cost and greater value for money
* Greater ease of repair and availability of parts.
According to sources, national pride is a factor, but when people spend almost 4% of their annual income on a mobile phone, they are going to make purchase decisions based on what will get them the most for their money.
Researcher projects that the bulk of new mobile users in India over the next five years will be the low income consumers, particularly in rural areas. Affordable mobile phones with an appealing set of features will be the key to success in this market.
