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Chinese handset manufacturer Gionee is currently in the process of drawing up a strategy to stop online retailers in India, including Flipkart, Amazon and Snapdeal, from selling its phones at deeply discounted prices.
“I am totally against the vitiating price points at which online retailers are selling Gionee phones. I am not against online retailing; I would consider working with a few if they sell our phones as per our prescribed price points,” said Arvind R Vohra, India Head – Gionee Smartphones.
He spoke to BusinessLine on the sidelines of Plugged IN, a consumer electronics and technology showcase, at the Bangalore International Exhibition Centre. “We are drawing up a strategy whereby consumers who buy our phones from online retailers will not get the one-year warranty that we normally provide. This will make consumers think twice before they buy our phones online,” he said, mirroring the views of many other big brands that have made similar complaints about online retailers and the deep discounts they offer shoppers.
Steady showSince its entry into the India market 20 months ago, Gionee has sold 4 million handsets and clocked an average selling price of ₹8,000. So far, it has launched 26 devices ranging from feature phones to smartphones in India, at price points ranging from ₹1,750 to ₹30,000. It announced the launch of four smartphones at Plugged IN.
Gionee is looking to double its India revenue from handset sales by this fiscal year-end to ₹3,000 crore, from ₹1,500 crore as of end-October. It has set a sales target of $1 billion (around ₹6,000 crore) for fiscal year 2016.
“In 2015 our focus will be on emerging technologies, including 4G LTE devices,” said Vohra. “All our smartphones priced above ₹10,000 will be 4G LTE-enabled over the next 2-3 quarters,” he added.
Big name in RajasthanGionee has garnered a market share of 4 per cent in India by value and is the No. 2 handset brand in Rajasthan after Samsung. However, it is finding it difficult to sell smartphones above the ₹20,000 price point, said Vohra.
In order to create a buzz around Gionee ELife S5.1, its high-end smartphone model, the Chinese company is set to unleash a new brand campaign, positioning the handset as the “Sexiest phone in the World.”
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