Gionee focussing on BTL, retail to propel it to top 3 in India by 2019: David Chang

There is no stopping the march of the Chinese smartphone brigade in India. As per the latest report by Hong Kong based research firm Counterpoint Research, 4 of the top 5 smartphone brands in India are Chinese brands. Xiaomi occupies the top position with a 31 per cent share of the market. The brand has pushed earlier leader Samsung to the second position, which reported a 26.2 per cent market share. Placed at the third spot is Vivo, while Oppo is placed fourth. Huawei is in the fifth position. 

However, in all this Gionee, the first Chinese handset maker to enter the Indian market, has been left behind. The company is looking at entering the top league with a revamp plan in place. 

Gionee was the first Chinese handset maker to enter the Indian shores, over the years we have seen latest developments happening. We have secured a patron base of 1.25 crore in India over a period of five years. 

In November 2017, Gionee India appointed David Chang to lead the India operations as Global Sales Director. He is leading Gionee India’s next phase of growth in the country, reinforcing the brand positioning, shoring up its retail expansion, sales volumes and after sales to further strengthen connect with the customers.  

David Chang, Global Sales Director, Gionee India, in an indepth interaction with Adgully speaks about how the smartphone brand is strategising to chart its next stage of growth story in the Indian market, the key focus areas, the growing competition and more. Excerpts: 

Coming from a global domain, how do you view the Indian market for Gionee?
At Gionee India, we have always ignited the youthful mind and aimed to empower them with our offerings. Moving beyond the specs war with other smartphone manufacturers, we take pride in having understood the needs of the Indian customer today, which essentially revolve around better selfies and battery functions in a device. 

Additionally, people want the latest technology at the affordable price range and the demand for features like Bezel-less display and dual cameras is increasing. In view of these evolving consumer demands, this year at Gionee we intend to offer the latest technology at affordable pricing to every smartphone user in India. 

Suggestive of the growing faith in our brand, we have secured a consumer base of over 1.4 crore in India and are motivated to adopt a more bullish approach towards innovation and expansion in India market. 

What are some similarities and dissimilarities that you have noticed in the Indian and international markets?
The popularity of multi-SIM smartphones is growing globally and the same is witnessed in India as well. In fact, the multi-SIM smartphones are more prevalent in developing countries as India and China. The cause of this growing popularity could be attributed to the availability of different lowest tariff rates for voice or data plans and gain access to better cellular coverage without roaming charges, which is not the case in other European and American countries. 

Additionally, features like camera quality, design, latest technology, updated software and battery life are some of the similarities that we have noticed in the Indian market vis-à-vis the international market. On the other hand, there are some specific trends that we observe categorically in the Indian market, such as colour obsession, language tools, extra focus on customer service, etc., which aren’t as much of importance in the international smartphone markets. 

How do you plan to further strengthen the brand and the product offerings?
Under our new strategic plan, we have adopted two different models – viz. Product Specific and Distribution Model. Under our Product Specific strategy, we are dividing products as our Flagship Models and Best Selling Models. Under our Distribution Model we are bestowing more power upon national distributors to sell the product and do their own marketing to enhance sales. 

Product: With regards to the product philosophy, our aim is to get our expertise absolutely on point with battery and selfie features. All our products aim to provide consumers with a seamless smartphone experience with a perfect mix of camera and battery, in metal grid and aluminium body, with faster processor and the latest android experience. We will be focusing on the design and technologies for all our devices. We strongly believe Full View display is the way to go for devices .We have also experimented with 3D technology in the M7 Power which enables users to explore a whole new side to the world of visual experience and photography. This will be followed by several other Bezel-less smartphone launches within the price bracket of Rs 10,000-Rs 15,000 – essentially encompassing the brand DNA of Super selfie, Super battery. 

With regards to new technology, we are exploring the in-display fingerprint scanning technology and aiming to introduce wireless chargers by the end of this year and we will soon be coming up with AI technology. 

Sales and distribution strategy: As part of our sales and distribution strategy, our major focus has always been on strengthening our offline sales and customer service. Gionee as a brand does not believe in flash sales and follows a different approach. Treading on these lines of thoughts, today we have presence in 42,000 retail outlets with nearly 70 per cent exclusive stores. Our aim this year is to double our revenue and market share in India, with a target of 50 per cent growth in sales volume. We also intend to register ourselves amongst the top five smartphones in the country by making premium smartphones features more affordable. 

In terms of distribution, from the very beginning our strategy has been to empower our channel partners by giving them more and more reasons to stay motivated and build a robust workforce to help them achieve their targets. Additionally, we are also expanding our team of promoters from 15,000 to 50,000, to ensure that all the retail counters are covered fully. As a part of our distribution strategy, we recently organised a visit for our top partners to Gionee’s Global factory in Shenzhen. The primary objective behind this two-day partner visit was to consolidate our connection across the channel as well as to acquaint distributors with Gionee’s capability and quest for focusing on building high quality products. 

Pricing strategy: India has now claimed the third spot in the global smartphone market and is constantly growing. While on one hand the demand for premium smartphones is growing increasingly, on the other hand we also realise that India is a cost-conscious country. Keeping that in mind, along with promoting and strengthening our premium smartphones range, we will also focus on products ranging between Rs 8,000 and Rs 15,000. Our partners’ support has been instrumental with respect to cost management, which has helped us maintain our price point. With added focus on improving overall efficiency and by introducing products that upgrade the differentiating radar, we are positive about our future in the Indian market. 

Marketing strategy: Geared up for Indian market with a bigger budget this year, we at Gionee intend to reinforce the brand by focusing on BTL activities this year. Almost 60 per cent of the marketing budget will be channelled towards BTL promotions. This year, we do not intend to spend heavily on huge ATL marketing initiatives, as over the past five years, we as a brand have engaged with renowned celebrities like Alia Bhatt and Virat Kohli to connect with the Indian consumers. Last year, we invested in a big way to build the brand, but this year with our BTL approach we will focus on consolidating the brand. Apart from that we also intend to focus on further building our brand loyalty and focus on customer service. Furthermore, considering the popularity of Gionee smartphones in Tier 2 cities, we will be spending on promotions in Tier 2 cities along with the metros. Customer connect activities are consistently conducted by the brand like the Smile Squad initiative and college activities. 

Given this push for the Tier 2 cities, what is your strategy to tap the regional markets?

We have always had a firm focus on our regional marketing strategy. After having built our brand across regions in India, this year as we are emphasising only on BTL, there will be a lot more focus on Tier 2 cities. Under this strategy, we will focus on promoting the brand locally through local festivities, on ground marketing campaigns, and various other campaigns customised for the local audiences. 

What are your overall marketing and advertising spends for this fiscal?
Marketing budgets have been increased by 30 per cent. So, the overall marketing budget for 2017-18 is Rs 750 crore. From this segment, we will be focusing on BTL activations primarily by investing almost 60 per cent of the budget in it with an objective to expand and strengthen our workforce that can drive customers to buy Gionee phone at the counter. 

How are you fortifying your offline strategy?
Since inception, Gionee India was functioning primarily on an offline model. However, post our recent restructuring process, the brand has decided to adopt an online and offline strategy. We are in talks with top e-commerce players to pursue the same. The best-selling models will be showcased online and we aim to ensure no difference in the pricing model of the respective devices both online and offline. Online mode will be another channel for our Internet savvy customers to reach out to us. 

As for the offline strategy, our emphasis is on establishing a strong connect with the customers, which we continue to build on even after the purchase. As a result, we have a presence in more than 42,000 retail outlets across 2,200 cities pan India that we are looking to grow to 75,000 outlets. Focusing largely on offline retail in India, we currently have a channel network of 15,000 promoters and aim to add 50,000 promoters in the coming year to increase conversions at the counter. 

What are the new launches in the pipeline?
Our upcoming launches planned in the next month will be basis the prevalent smartphone trends and features, which includes battery life, Bezel-less phones, dual lens camera, low-light selfies, long lasting batteries, Octa core processor with smooth performance and experience  to name a few. Without a Bezel, a user can have more screen real estate and it looks cleaner as well, consequently affecting the general ease of use and overall appearance. 

What are Gionee’s plans to leverage the ongoing IPL tournament?
Considering the BTL marketing approach that we have adopted this year, we wouldn’t be investing in big ticket marketing deals. However, we definitely intend to ring in the IPL festivities on ground for our customers and plan many engagement activities around the same. 

Could you give us a preview of Gionee’s plans for next 5 years in India?
India is the most important market for Gionee owing to the amount of potential there is to tap here. Having established a strong base here with around 1.4 crore loyal customers, we at Gionee are optimistic about expanding our customer base in the country now. The brand is aiming to secure a position among the top five smartphone brands in the second half of 2018. In the first half of 2019, Gionee India will target to be among the top three players in the Indian smartphone market. 

In our quest to join the top 5 smartphone bandwagon, we are also beginning with expansion of our retail footprint. Gionee’s brand loyalty is 33 per cent and we intend to ride on that and further grow our brand loyalty. In order take better care of our customers, we are also going to invest in our customer service centres and make them better equipped. Apart from that we are revamping the entire process and taking necessary actions to improve customer service. Our manufacturing plans are under discussion with the government and hopefully soon we will start local manufacturing and increase business volumes. 

Are you planning to get any new face for the brand?
Celebrity associations were a part of our marketing strategy last year and that has helped us build a strong brand connect with the Indians. Apart from that, building a strong connect in every region of India we also associated with a lot of regional celebs that helped us reach far and wide in the country, making our brand more popular in the Tier 2 cities as compared to the metros. This year, however, we are adopting an on-ground approach as we intend to further consolidate our brand. This year onwards as a brand we would like to represent the youth and vice-versa through various campus activities, smile squad and engagement activation, etc.

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