'We have increased our marketing budgets by 30%'- Alok Shrivastava, Gionee.
Alok Shrivastava, Director, (National Sales) Gionee India shared insights into the company's new business model and game plan for online channels and more.
Gionee has recently launched two new products; the smartphones have been launched at a time when the brand is going through a restructuring phase in the country. The company has revamped the strategy and aims to be among the top five players in the Indian market.
According to the company, they did not launch any product in the last six months because it was re-calibrating its marketing strategy and product portfolio.
In an interview with exchange4media, Alok Shrivastava, Director, (National Sales) Gionee India shared insights into the company's new business model and game plan for online channels and more.
Edited Excerpts-
What was the reason behind the momentary hiatus at Gionee in the past few months?
We were in the process of revamping our business model and strategy during the past few months. We have kick started this fiscal year with two products at one go. We have also increased our marketing budgets, with a different approach towards the market.
What difference in buying pattern have you noticed in the Indian consumer compared to China?
The buying pattern between our consumers in India and China coincides in certain aspects and differ in the rest. For example, the most trending and in demand features in India at present are bezel less display, good battery life and camera prowess, whereas in China, AI is becoming the new norm for smartphones. Additionally, smartphones are also becoming the most viable option for deployment of Machine Learning.
Oppo & Vivo specifically followed Gionee’s footprints and bolstered their offline presence. Now, how you will fortify your offline distribution and sales channel?
Offline has always been our major focus for our sales and distribution strategy. As a brand, we do not agree with flash sales and therefore we follow a different approach. We have a presence of 42,000 retail outlets with nearly 70% exclusive stores. Considering the evolving market scenario, following our restructuring, we decided to adopt an online-offline strategy. We are in talks with the top e-commerce players to pursue the same. The best-selling models will be showcased online and we aim to ensure no difference in the pricing model of the respective devices both online and offline.
Are you still betting on the offline model? If not, then why did the company drift from its ideology?
As discussed earlier, we were in the process of restructuring, considering the evolving consumer behavior in India market. We have now adopted an online-offline model, wherein, offline has always been our strong point and online mode will be another channel for our Internet savvy customers to reach out to us.
The competition in Indian budget smartphone market is at its peak with major competition from brands like Xiaomi, Vivo, Oppo, Moto and others. How will you differentiate yourself and create a niche?
We commenced the year 2018-19 with a bang, launching two new products F205 and S11Lite. Primarily driven by the intent of amalgamating affordability and functionality, the latest launches boast cutting-edge and in-vogue technologies. We intend to establish connect with the youth and fulfill their demands and requirements in the times to come. Catering to the ever-growing demand for pre-eminent smartphone features at competitive price points, both the launches are designed to lead the sub – 15K category in India.
How do you plan to further strengthen the brand and product offerings?
Geared up for the Indian market, we at Gionee intend to reinforce the brand by focusing on BTL activities this year. Almost 60% of the marketing budget will be channeled towards BTL promotions. This year we do not intend to spend heavily on huge ATL marketing initiatives, as over the past five years. This year with our BTL approach we will focus on consolidating the brand. Our focus also lies in building our brand loyalty and customer service.
However, with the popularity of Gionee smartphones in Tier II cities, we will be spending on promotions in Tier II cities along with metros.
In terms of product offerings, our smartphone experience will include faster a processor and the latest android experience. We will be focusing on the design and technologies for all our devices.
How much sales contribution you are aiming for from offline and online in 2018-2019?
Our online sales contribution was 5 percent last year and this year we aim to double it.
What was your marketing and advertising spend last year? Any increase planned for this fiscal?
We have been constantly increasing our annual marketing budgets ever since the launch of the brand in the country and last year our budget was INR 500 cr. We have increased our marketing budgets by 30% this year.
Our brand is now known and well accepted in the market, what we need to do now is drive conversations around the brand. We have plans to invest in our customer service centers and make them better equipped. We plan to expand to 650 active Service centres primarily focusing on after sale networks with the customers.
According to the company, they did not launch any product in the last six months because it was re-calibrating its marketing strategy and product portfolio.
In an interview with exchange4media, Alok Shrivastava, Director, (National Sales) Gionee India shared insights into the company's new business model and game plan for online channels and more.
Edited Excerpts-
What was the reason behind the momentary hiatus at Gionee in the past few months?
We were in the process of revamping our business model and strategy during the past few months. We have kick started this fiscal year with two products at one go. We have also increased our marketing budgets, with a different approach towards the market.
What difference in buying pattern have you noticed in the Indian consumer compared to China?
The buying pattern between our consumers in India and China coincides in certain aspects and differ in the rest. For example, the most trending and in demand features in India at present are bezel less display, good battery life and camera prowess, whereas in China, AI is becoming the new norm for smartphones. Additionally, smartphones are also becoming the most viable option for deployment of Machine Learning.
Oppo & Vivo specifically followed Gionee’s footprints and bolstered their offline presence. Now, how you will fortify your offline distribution and sales channel?
Offline has always been our major focus for our sales and distribution strategy. As a brand, we do not agree with flash sales and therefore we follow a different approach. We have a presence of 42,000 retail outlets with nearly 70% exclusive stores. Considering the evolving market scenario, following our restructuring, we decided to adopt an online-offline strategy. We are in talks with the top e-commerce players to pursue the same. The best-selling models will be showcased online and we aim to ensure no difference in the pricing model of the respective devices both online and offline.
Are you still betting on the offline model? If not, then why did the company drift from its ideology?
As discussed earlier, we were in the process of restructuring, considering the evolving consumer behavior in India market. We have now adopted an online-offline model, wherein, offline has always been our strong point and online mode will be another channel for our Internet savvy customers to reach out to us.
The competition in Indian budget smartphone market is at its peak with major competition from brands like Xiaomi, Vivo, Oppo, Moto and others. How will you differentiate yourself and create a niche?
We commenced the year 2018-19 with a bang, launching two new products F205 and S11Lite. Primarily driven by the intent of amalgamating affordability and functionality, the latest launches boast cutting-edge and in-vogue technologies. We intend to establish connect with the youth and fulfill their demands and requirements in the times to come. Catering to the ever-growing demand for pre-eminent smartphone features at competitive price points, both the launches are designed to lead the sub – 15K category in India.
How do you plan to further strengthen the brand and product offerings?
Geared up for the Indian market, we at Gionee intend to reinforce the brand by focusing on BTL activities this year. Almost 60% of the marketing budget will be channeled towards BTL promotions. This year we do not intend to spend heavily on huge ATL marketing initiatives, as over the past five years. This year with our BTL approach we will focus on consolidating the brand. Our focus also lies in building our brand loyalty and customer service.
However, with the popularity of Gionee smartphones in Tier II cities, we will be spending on promotions in Tier II cities along with metros.
In terms of product offerings, our smartphone experience will include faster a processor and the latest android experience. We will be focusing on the design and technologies for all our devices.
How much sales contribution you are aiming for from offline and online in 2018-2019?
Our online sales contribution was 5 percent last year and this year we aim to double it.
What was your marketing and advertising spend last year? Any increase planned for this fiscal?
We have been constantly increasing our annual marketing budgets ever since the launch of the brand in the country and last year our budget was INR 500 cr. We have increased our marketing budgets by 30% this year.
Our brand is now known and well accepted in the market, what we need to do now is drive conversations around the brand. We have plans to invest in our customer service centers and make them better equipped. We plan to expand to 650 active Service centres primarily focusing on after sale networks with the customers.
