That’s the slogan all mobile retailers are chanting, but who amongst them stands a better chance? surbhi chawla analyses...
A 1977 British tele-serial had the shy young Roland Wright dealing with his tormenting existence at home (with nagging parents) and at school (with bully peers & despotic teachers). One day, Wright falls down a
lift shaft where everyone in his life transforms into hideous doubles and Roland must overcome his enemies to become “King of the Castle”! The plot is reminiscent of modern day chaos in the organised mobile retail segment, wherein each protagonist must uncover a series of vital keys to become King of India’s lucrative mobile retail castle. On stake is the Rs.70,000 crore and growing mobile market of India, of which, analysts estimate, at present only about a miniscule 7-10% comprises organised retail. From the Essar promoted The MobileStore to the price-warriors like Subhiksha Mobile to big daddies like Reliance Digital, everyone is keen to jump on this ship before it sets sail to moolah land. And each player is trying to create that winning differentiator that separates the wheat from the chaff.
But before we get on to that, let’s just briefly look into the biggest challenge that this retail format faces, and one which is making players in the segment sick with worry. Till date, more than three-fourth of the mobile retail business continues to be done through the unorganised segment and grey markets. In fact, most players consider the unorganised segment as their biggest competitor, as opposed to other organised players. Yet, there is big time optimism in the air that sooner than later, the organised players will win consumers over and that the share of the grey market will go down. “The major advantage they are offering customers is price and organised retailers are already trying their best to give lowest cost advantage.
A 1977 British tele-serial had the shy young Roland Wright dealing with his tormenting existence at home (with nagging parents) and at school (with bully peers & despotic teachers). One day, Wright falls down a
lift shaft where everyone in his life transforms into hideous doubles and Roland must overcome his enemies to become “King of the Castle”! The plot is reminiscent of modern day chaos in the organised mobile retail segment, wherein each protagonist must uncover a series of vital keys to become King of India’s lucrative mobile retail castle. On stake is the Rs.70,000 crore and growing mobile market of India, of which, analysts estimate, at present only about a miniscule 7-10% comprises organised retail. From the Essar promoted The MobileStore to the price-warriors like Subhiksha Mobile to big daddies like Reliance Digital, everyone is keen to jump on this ship before it sets sail to moolah land. And each player is trying to create that winning differentiator that separates the wheat from the chaff.But before we get on to that, let’s just briefly look into the biggest challenge that this retail format faces, and one which is making players in the segment sick with worry. Till date, more than three-fourth of the mobile retail business continues to be done through the unorganised segment and grey markets. In fact, most players consider the unorganised segment as their biggest competitor, as opposed to other organised players. Yet, there is big time optimism in the air that sooner than later, the organised players will win consumers over and that the share of the grey market will go down. “The major advantage they are offering customers is price and organised retailers are already trying their best to give lowest cost advantage.
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