Indian Smartphone Market 2013 (Q4)

Others, 28.3

Lava,
4.7
Sony, 5

Samsung, 36

Micromax, 16

Karbonn, 10
Source: IDC

Indian Smartphone market prior to

Motorola Re-Entry
Remarkable migration from feature phones to
smartphones.
44 million smartphones were sold in 2013.
Global players Samsung, Sony, HTC, Apple .
Fast growing Indian brands such as Micromax, Karbonn
and Lava also existed.
Difficult even to grab a small share of market.

Motorola's E-tailing Strategy

To have a compact product portfolio.
Low advertising expense.
Focus on price and distribution.
Less distribution cost by selling exclusively through
online marketplace(Flipkart).
So obviously less cost for more specs. (Competitive
Advantage).

Product Portfolio at Relaunch

Moto E (Rs. 6999)
Moto G (8GB Rs. 12499 / 16GB Rs. 13999)
Moto X (16GB - Rs. 23999)

Motorola's E-tailing Success

Out of stock - 15 minutes.
The other variants and models also sold well.
1.6 Million handsets sold.
Others players such as Xiaomi, Asus and Alcatel are also
following similar model.

Indian Smartphone Market 2014 (Q2)

Samsung, 25.3
Others, 41.4

Micromax,
19.1

Nokia, 4

Karbonn, 5.9

Motorola, 4.3
Source: Counterpoint Technology Market Research

Indian Smartphone Market 2014 (Q3)

Samsung, 25.1

Others, 35.7

Micromax,
20.4

Sony, 4.5
Motorola, 4.7

Karbonn, 9.6

Source: Counterpoint Technology Market Research

Features of Exclusive E-tailing model

Distribution easy.

The overall channel margin ranges from 6 to 15

percent.
Cuts out overheads.
If the same handset was sold in brick and mortar store
it would have costed additional 3000 to 5000 Rs.
It takes 30 days for a new product to reach customer down
the distribution channel.
Consumer experience standardized.

Challenges ahead
Active internet users in India (243 million 2014 Q2 19%).
Lowest internet penetration growth in Asia Pacific (17.4%)
Touch-and-Feel.
Genuine products without any damage
Launch of Xiaomi and Android one.

Another Ecommerce selling productImaginative Lighting Range

Philips Lighting- Imaginative lighting Range
Priced between Rs 800 and Rs 5000
Sold in Amazon
This Partnership with Amazon is not meant for cutting
corners by not selling Through Physical Stores. We believe a
Strong Ecommerce Platform Can ensure the desired reach
for Such products
Philips Lighting also sells other products in Flipkart and
Snapdeal
Two Retailers -Mother Care and Mahindra Retails Mom and
Me- Making Ecommerce shopping probability more

Conclusion
"We will never go the traditional retail route in India,Indian Head of Xiaomi.
About 30 per cent of our sales come from online sales via
sites such as Flipkart and Jabong (Indus League).
Ecommerce is also a factor in the offline expansion strategy
in India's $518 billion (Rs 31.5 lakh crore) retail sector.
Aditya Birla-led Madura Garments-Louis Philippe and Van
Heusen - TrendIn.
Ecommerce in India -250 million internet users and 900
million mobile subscribers.