Wednesday, September 3, 2014

The Decline Of Local Mobile Shops in India ( Rise of Online Mobile Phone Shopping)

The Online Shopping Market has already becoming a fat guy gradually. But the latest trend created by Xiaomi , a leading Chinese brand in last few weeks has made a huge threat not only to the leading smartphone manufacturers but also the Local Mobile Phone retailers.

Indian consumers are rapidly moving to the Smartphone technology. Leading manufacturers from various countries all over the world realized this phenomenon and laid their foot in Indian mobile phone market.

Nokia's era is already came to end as they refused to switch over Android technology . Nokia's Market is gradually acquired by Samsung by introducing variety of Smartphone variants.

Side by side some other companies like Micromax, Xolo, LG are also developing their brand images in Smartphone market.

decline of local mobile shops

But, the sudden Entry of Xiaomi with their Unique marketing strategy has created a huge threat to the leaders running in the race. Xiaomi has sold about 1 Lakh unit of Mi3 in 5 weeks and 40000 units of Redmi 1S in 1 week . They sold in "Flipkart Only" Strategy.

Apart from this , the major segment going to be affected by their strategy is Local Mobile Phone Retailers.
In recent Interview , Xiaomi official reported that 20 to 30 percent of mobile phone price has to be given to local retailers as Commission.

But if they sell their product directly in their website or Flipkart, customers can be get benefit as they do not cost the commission cost from the customer.

This will lead to a big decline of the local retail shop segments and this can be compared to the decline of local town cinema theaters at the time of rise of Television Era.

Likewise , when online recharge system introduce, the local recharge card business has almost disappeared.
Rise of Mobile phones lead to the decline of Local Public PCO phone centers.

Now, it is the time that comes to Local Mobile retailers. Unless , they make a alternate strategy there is less chance to survive against the online shopping.