Why Micromax Failed in India?
In this world everyone use smartphone and there are many smartphones launched in Indian market. Everyone wants to buy a smartphone who gives best features. why did micromax failure and why Nokia or Lava failed in the market of smartphone. Micromax income surpassed the Rs. 10,000 crore marks in 2016. The valuation dropped to Rs. 5614 crores in 2017 and then to Rs. 44,30 crores in 2018. The company had a rapid decline of 74%, which gave away the brand’s terrifically financial situation. then why micromax failed. Micromax has stable to maintain its position. Like no other companies, the Chinese market has captured the interest of the Indian market consumers. The sales of Micromax were impacted by the entry of Chinese companies like Xiaomi and Oppo. However, these are categories can be used to group the elements that have the most negative impact on the brand. The most of the Micromax phones supported 3G technology. 3G technology launched in 2008 and 4G was introduced in 2012 in India. Internet costs very costly compare to 3G, Because of the cost, individuals were unconvincing to switch to 4G even if 75% of phones were 3G compatible.
Micromax Brands Failure:
The foreign brands capture the Indian market and they realized Indian market is the largest market to branding their products. The Indian market large number of consumers and foreign companies like Realme, Mi, comes in india market. And the foreign companies invest lot of money in the advertising and marketing campaigns, which is attract the young consumers. The foreign brands almost capture the Indian consumers.
Micromax Quality and specification:
Everyone wants to buy a smartphone with the best features and high quality. Everyyear the smartphone industry launch new features and add more number of cameras in their devices. They updated their brands every time which is most attract the consumer attention. We still want to buy a good quality features and brands smartphones.
Micromax time of Being E-Commerce:
In this time online and offline both markets busy with the consumers. The offline market is finding it challenging to maintain its current position and is finding it challenging to compete with them. We all choose online platform to buy products because its provide benefits to return and replace policy. E-commerce market provides the free shipping and Clients only need to scroll down the website and choose the goods they desire. One item that I overlook is the profit margin and commission that were charged. Oppo and Vivo are dominant in the offline sector. As they were paying retailers and distributors more money to keep their brands in front of shoppers. While a brand like Samsung insists that retailers sell phones worth a specific amount, Chinese brands allow retailers to make easy money by displaying the number of units sold. It is very challenging in a market where cheap phones are the norm.
What is the main reason to failure of micromax:
The failure of micromax is many reasons that micromax is flopped in Indian market. But the main reason was the introduction of 4G in India and the revolution that Reliance Jio sparked. Micromax found itself the large stock in 3G technology cellphones across the supply chain. When comes 4G in India then the Indian market focusing on 4G devices contributed to micromax failure.
