Channel Post speaks to Sandeep Saihgal and Ashraf Fawakherji of TCHANNL, about Micromax’s plans in the Middle East region.
What trends have you seen in the regional IT and consumer electronics market?
Breakthrough technologies continue to create new value and transform a whole new digital experience for businesses and consumers alike. Consumers are increasingly seeking compact and multifunctional products such as smartphones and tablets that are offering internet connectivity.
The fastest growing segment today is the smartphone category. As per industry reports, there were about 339 million unique subscribers across the MENA region, accounting for 60 percent of the population, in 2016. Subscribers in MENA are increasingly migrating to mobile broadband services, with mobile playing a crucial role in providing Internet access given the general lack of fixed broadband infrastructure in the region.
But there is huge diversity in the region. The UAE has the highest smartphone adoption rate in the world, with 83 percent of connections being smartphones and the three other markets – Kuwait and Oman – also have adoption rates above 70% ( as per GSMA reports).
The future growth will be driven by declining prices and the increasing availability of affordable feature rich smartphones in the region. Further, as consumers migrate to mobile broadband and smartphone adoption grows, use of data services is will also increase.
The mid segment mobile and smartphone market indicate an upward growth in sales and user penetration in the region. Micromax, has an established presence in key smartphone markets globally, also lays strong emphasis on democratizing technology for the masses by making affordable smartphones – and this is a growing segment Micromax is focused on in the MENA region as well.
It has been two months since the launch of Micromax in the MENA region and we have seen immense success amongst our consumers and have made significant inroads in key markets like UAE, Oman, Kuwait, Jordan, Palestine, Bahrain and KSA.
How important is an event such as Distree for your overall regional strategy?
Distree is a highly focused technology driven industry event that allows the entire consumer tech channel community to come together under one roof. The event attracts consumer tech vendors and brands from across the region to network and showcase their portfolio, discuss new business opportunities and understand how these tech eco systems co exist, develop and progress. Being the world’s 10th largest handset player, MENA region is one of the key international market focus areas for us after the sub-continent and Russia. Connecting with mutually aligned partners will help in the Distree.
What factors according to you are driving the IT and CE market in the region?
The consumer electronics market is going through a change, owing of the convergence of technology and constant evolution. Consumers are adapting to the change and opting for ‘smarter’ devices. We have witnessed evolutions across several traditional and ‘emerging’ consumer electronics categories.
Smartphones have established themselves as the leader in the consumer electronics space. Consumers today have become more connected and mobile, while smartphones continue to become a personal device of mobility and convenience.
While the overall smartphone market continues to grow consistently increasing smartphone penetration here in the UAE; the segment of affordable smartphones is growing for Micromax in MENA region. This growth in the customer base is accompanied by an increasing number of players catering to a wide range of customer preferences of price points and features.
Over 50 percent of the mobile handset market comprises of the entry level and low to mid-range segment and we are sure that our handsets will be accepted very well by our target audience. Micromax is aiming to fill in the gap for for consumers who look for the features like connectivity, camera quality (especially in the selfie and Instagram era), speed and longevity. We are not lowest priced handsets available in the market but definitely lead the categories with all the qualities of a smartphone with great experience for the consumer.
Which countries in the region are the most upcoming in terms of speeds in the region?
The MENA region has seen a massive growth in the sales and penetration level of smartphones. The regional penetration figure masks significant variations at the country level in terms of mobile market maturity.
In the GCC, a majority of the population (up to 77 percent) on average are mobile subscribers, and three of these markets (Bahrain, Kuwait and the UAE) have a subscriber penetration rate of over 90 percent, placing them among the most penetrated mobile countries in the world. By contrast, the non-GCC Arab States have an average subscriber penetration rate of 56 percent.
We are very bullish of making the most of the growing market for the customers who are looking for the great experience when it comes to features and connectivity of their smartphone. The market opportunity is huge and our large portfolio of devices will be able to cater the customer’s need across MENA. To start with, we feel our internationally successful range ‘Bolt’ will charm the consumers and we are confident that Micromax will serve as a key player in the market.
How important is Africa for your overall business and channel strategy?
Affordable smartphone prices are driving a digital revolution in Africa, allowing mobile phone users to access the internet at unprecedented levels. Operators and developers are also leveraging the power of mobile networks to transform services in health, agriculture, education and energy and water management.
The number of smartphone connections across the continent almost doubled over the last two years. We have already achieved much success within two months of Micromax being established in the region and are projecting a positive, upward growth in Africa.
The growth in smartphone use is pushing telecommunication companies to develop new products to boost their user base. More than half a billion people across Africa now subscribe to mobile services, with the number expected to grow to 725 million by 2020.
What is your theme for participation at Distree this year?
It is the first time that Micromax is participating in Distree, however we do have bigger and better plans ahead for the next few Distree events. Micromax has already established its presence in the region and are ready to expand our channel reach into the Middle East in 2017.
At Distree we aim to showcase our range of smartphones and feature rich mobile handsets and discuss potential opportunities with other like minded partners. DISTREE Middle East 2017 is a trade-focused event that unites technology brands with the regional go-to-market ecosystem. We are looking forward to meeting with other delegates attending the event and discuss market insights and business opportunities.
We are also looking forward to participating at the DISTREE Middle East conference program that tackles issues impacting the regional market and encourages cooperation between vendors, distributors, retailers and e-tailers to promote further growth and development of the consumer tech market in the Middle East.
Do you plan to launch new products and solutions at the event this year?
Our immediate goal is to increase the footprint across the MENA region and capture a significant share in the market. We have covered a lot of ground over the last month and are working aggressively to strengthen Micromax presence across key retail points.
We are also bringing Micromax’s latest, game changing, next generation smartphone to the MENA region with the launch planned in the coming months. Micromax will introduce its trendsetting and successful ‘Bolt Series’ of smartphones that have already sold more than 20 million devices across the company’s operating markets. Furthermore, the smartphone portfolio will be expanded based on consumer insights.
All the handsets target the fastest growing segments of the regional mobile phone user base which comprise of first time mobile users, feature phone users upgrading to smartphones and consumers looking for a high quality smartphone with rich experience.
Are you actively looking for channel partners in the region?
In the past two months we have established the brand Micromax in the region and have also set up a robust distribution network across Bahrain,Jordan, Kuwait, Kingdom of Saudi Arabia, Oman, Palestine, Qatar and the UAE. We are well associated with our channel partners’ we continue to look for partners who understand our vision in the region to expand our base and are looking to further establish our retail presence across the MENA region.
