By 2019, We Will Be Able To Export Products From India: Ashwin Bhandari, CEO, iVOOMi
Chinese OEM iVOOMi entered the Indian smartphone market in April last year and have already sold close to 600,000 devices. Now the company is targeting 2 million devices in the next fiscal. This target of 2 million devices includes smartphones, power banks, smart accessories, audio video product categories.
In an exclusive interview with BW Businessworld, Ashwin Bhandari, CEO, iVOOMi shared his plans and future prospects of the company.
Company's upcoming products, accessories and gadgets for Indian market in 2018?
2018 will be an exciting year for iVOOMi in terms of new launches in India. In January this year, we launched two smartphones i1 and i1s. In terms of accessories, we already have a series of power banks in our portfolio and we will have another series by the end of March.
Given that the millennial are accepting technology as a way of life, we will be coming up with a fitness band in April. By the end of first quarter in next fiscal, we plan to venture into the audio visual category. There are many offerings in the pipeline for the rest of the year as well, but it will be too soon to comment on that.
How has the Make In India Initiative helped the growth of iVooMi in the Indian market? How much investment is the company planning to do in 2018?
We have a major advantage of prior semi-knocked-down (SKD) experience, better process knowledge and expertise to manufacture a smartphone. This is one of the most important growth enabler for the company.
We have the capacity to manufacture better, expensive and complex phones in India. We are totally committed to Government of India’s ‘Make in India’ initiative. 99% of iVOOMi’s products sold in India are locally manufactured.
Our entire manufacturing and assembling is done in Noida, UP at Hi Pad Technology Pvt Ltd. This year will be switching to 100% manufactured product in India and we will not have single device which is manufactured out of India and then imported back.
Any plans to export your phones made in India to other countries?
Our first step is increasing the manufacturing as well as sales volume. Post this, we will expand the product line. This will help us to invest in the growth of our design and R&D team in India. By 2019, we will be able to export products from India to the different parts of the world.
How important is India as a market for iVooMi? In what ways, is the Indian market different from other markets?
The importance of India as a market for iVOOMi cannot be overstated. Despite all the advancements in the country in terms of telecommunications, less than 35% mobile users use a smartphone. iVOOMi is trying to change this with is cutting edge smartphones at an unmatchable price. What makes India different from many other markets is that people here are open to adopt new technologies faster than many other markets. However, a large section of the population has a unique sensitivity to prices. Therefore, we are trying to hit the sweet spot to address that sensitivity while ensuring the highest level of quality and innovation.
iVooMi specifically targets Tier 2, 3 and 4 cities with smartphones below Rs 7,000. Will you be launching smartphones above 10 grands?
Our 3 year planning clearly highlights that we will not cross Rs 8000 mark for any of our product line, be it the smartwatches or smartphones. We also develop and design smart TVs but have not launched it in India so far. However, we will have our smart TVs here within the next 7-8 months. Television is the first category where we will cross the Rs 8000 limit.
What percentage of smartphones are sold online and offline?
Considering our targets, experience, and understanding, we believe that online is the right way to go for us. Most consumers find online shopping of smartphones, accessories, and gadgets more convenient and affordable as compared to brick and mortar stores.
People have this perception in their mind that there are no service centres of iVooMi as it is sold online. How big is your company’s service centre network in the country and how do you plan to expand it?
The short answer to the question is that we have more than 1000 service centres to support our after sale services. Moreover, we have the knowledge and intent to stay and grow in the Indian market. We aim to resolve any issues for our consumers within 7 hours.
Every new player needs time to build complete infrastructure in a country. I believe that it is just a matter of time when we are at par with players which have been in the Indian market for over a decade, in terms of our after sales network.
With every brand launching smartphones every week, why do you think consumers will buy an iVooMi smartphone?
As I said earlier, iVOOMi hits the sweet spot amongst price sensitivity, innovation, product quality, and post sales services. Not many established players come close to us on this front. This helps iVOOMi stand out amidst the crowd.
What is your vision for iVooMi for the next two years?
We see ourselves as a beloved technology brand which delivers values not just in terms of price but also through right products at the right price.
We are not a smartphone company. We are a technology company which develops different product lines. We connect to maximum consumers without disrupting our pricing. Rather than using pricing as a differentiator, we provide uncompromised product quality and features to capture the market share.
How big is your team in India? What is the hiring pattern of the company in India and which areas do you specifically look employees for?
Currently, we are a team of 45 people in India. There is a team of 16 people in China which supports us. We look to hire young, enthusiastic, innovative, and open minded people. The management aims to empower these people with autonomous decision making, only providing the top-level guidance.
How much Capital do you invest in marketing?
2017 was our first year in the country. We did not invest significantly on marketing as we focussed on getting our operations in place, team building, and setting up the local manufacturing capability. The focus will continue this year as well. We do not plan to make heavy investments on marketing this year.
Cumulatively, with all these product lines put together, we want to build a robust, loyal, and continuously growing network of customers. The entire journey is built on the strength of our promising product portfolio.
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