Domestic handset maker Micromax is exploring new strategies to defend its market share and is set to commence online 'flash sale' program to fend off competition from rivals such as Xiaomi and Motorola.
Micromax, country's second largest handset manufacturer, will sell exclusive products online at different price ranges on Flipkart, Amazon and Snapdeal, Vineet Taneja, chief executive, told The Economic Times.
"Apart from creating a buzz, it (flash sale) also helps in planning our supplies better. It gives us an estimate of how much stock we have," Taneja said.
The company, which saw its revenues surging by 54% to around ₹10,000 crore for the fiscal year 2014-15, now claims to be the market leader in the sub-₹7,000 segment with 21% share, surpassing Samsung.
To protect its market position, Micromax wants to replicate the flash sales approach followed by Chinese smartphone firm Xiaomi in the Indian market, which usually garners a huge response.
Xiaomi is reported to have sold 50,000 units of Redmi 2 smartphone in less than two minutes in a flash sale offered in March.
The company may also consider pre-bookings or passes, a strategy followed by another Chinese rival One Plus, to strengthen its offerings online.
Micromax launched Canvas Spark on Tuesday, priced at ₹4,999, and will sell the smartphone exclusively on Snapdeal through flash sales from 29 April. It plans to strike similar deals with other online retailers Flipkart and Snapdeal.
Taneja said the company aims to continue its lead position in the mass smartphone market, or sub-₹7,000 segment, with flash sale initiatives and by partnering with e-commerce giants. Micromax aims to post a growth of 50% this year also, by launching new models, carrying out flash sales and by stepping up local manufacturing.
"Last year we sold 10 million smartphones in the mass category, where we are No 1. The opportunity is much larger, as 10 million feature phones still get sold every month and half of the existing smartphone users still have old smartphones. There's a massive upgrade market available," Taneja said.
The company's sales in mass market segment rose to 60% in January-March quarter, from 50% in April-June 2014. The Gurgaon-based handset maker has a market share of 18% in smartphone segment and 15% in overall market, according to IDC.